Tech Boom Hits New York Start-Ups
It’s official: The Internet gold rush is spreading east. A decade after the tech bubble burst and brought down Silicon Alley, investors are crowding back into New York’s start-up scene, pumping funds into companies like fashion website Gilt Groupe Inc., which now commands a $1 billion valuation, private-company trading system SecondMarket Inc., and location-based networking business Foursquare Labs Inc.
The exuberance is fueled by–and fueling–a new phase in Internet ventures, with talent ditching Wall Street careers to set up companies in New York-centric industries such as fashion, retail, finance and media. Those businesses, in turn, are having an impact far beyond the city itself.