Start Up Business: New York Top Destination for Technology Industry

Start Up Business: New York Top Destination for Technology IndustryThe technology industry has found a second home in New York City. No longer the sole entity of Silicon Valley, the tech industry is rapidly attracting investors and engineering talent to NYC.

According to “New Tech City,” a study conducted by the Center for an Urban Future found that the technology industry is growing faster in New York City than anywhere else in America, only trailing Silicon Valley in the development of start-up technology companies.

Reported by the New York Times, the study identifies 486 technology companies that had been founded in the city. The industry was one of the few not stunted by financial crisis and recession. In fact, New York was the only place where the number of deals to finance tech start-ups rose between 2007-2011.

The study attributed some of the growth to Mayor Bloomberg’s efforts to diversify the city’s economy and reduce dependence on Wall Street as an economic engine. The growth is predicted to be much more stable than the boom because rather than creating new technology, the new start-ups are creating innovative ways to apply existing technology to develop new products and services. Furthermore, New York’s dominant positions in industries like finance and advertising make it a natural fit for those looking to develop digital services for those fields.

Some of the top start-ups that have received the most funding since 2007 are Gilt Groupe, Tumbler, ZocDoc, 2tor, Foursquare, and Fab. The tech businesses tended to be located in Midtown and Lower Manhattan, due to the fact that other boroughs lacked adequate broadband access; a detriment to a city trying to become a technology powerhouse.

If you’re just starting up your business, you already have a lot on your mind—and getting the business insured is no doubt high on your list. As Startup Business Insurance specialists, the Rubin Group can help you avoid the pitfalls that trip up so many other new businesses. Contact us today for more information.