3 ms·

Not sure if I agree with this article. None of the LA companies he mentions have been home runs or anything even close. And NYC is a different story altogether

by dr_ 16y ago

Not sure if I agree with this article. None of the LA companies he mentions have been home runs or anything even close. And NYC is a different story altogether - there's one VC (USV) basically trying to run the entire show, with a supporting cast here and there and even their biggest "success" to date (Twitter) is really based in Northern California. Other companies like 4square are proving to be succesful, but even they finally had to open operations in the SF/Valley area because they couldn't get enough talent in NYC, and ones like drop.io flopped cause they just couldn't get traction despite having a talented team. I think when it comes to developing pure tech companies - like hardware (although that's moving to Asia, except for "Design") and hardcore software, the Valley will always be the place for those companies. Places like LA/NYC, etc. will use this technology to enhance whatever industries are a dominant part of their respective economies. I say this living in the NYC metropolitan area. Personally I would love to see the Wall Streeters vanish and be replaced by tech companies doing cool, interesting stuff. But I know it won't happen.

muhfuhkuh 16y ago
"Personally I would love to see the Wall Streeters vanish and be replaced by tech companies doing cool, interesting stuff. But I know it won't happen." That could be the problem with NYC startup scene. You simply _cannot_ get the absolute best and brightest "rock star" developers because they sucked into blackrock, D.E. Shaw, or some such doing rack room quant algorithms. You can't compete with what may as well be a blank check and insane bonuses. You _might_ get lucky and snag the starry eyed idealist fresh out of college, but then again, the "rock stars" in that crop might go start their own thing, or, worse, hear the siren song of Sand Hill Rd. (or Stanford Grad program, which is eventually the same thing).
staunch 16y ago
You'll have to define what you mean by "home run" if $500M+ exits don't count.
gyardley 16y ago
Union Square Ventures is only a small part of the NYC funding landscape. First Round, Betaworks, RRE, DFJ Gotham, IA Ventures, Starvest, SAVP, Softbank, Rho, Greycroft, and that's just off the top of my head (I know I'm missing some), in addition to firms like Spark / True / Kodiak / CRV that often come here to invest and Sand Hill Road firms that are newly opening offices here like Canaan and Accel. Don't get me wrong, USV is a great firm to work with, but you can comfortably do a round in NYC without ever having to talk to them. Don't let the fact that Fred has a popular blog blind you to the rest of the ecosystem. I also think you're underestimating how much interesting technology there is in NYC. Yes, a lot of it is related to advertising or the financial sector. But the type of scale many of these companies are working with requires 'hardcore software' by anyone's definition. I do agree that recruiting is hard here, but recruiting is hard everywhere.
pmikesell 16y ago
Seattle has had some good outcomes. There's some great companies up there and a thriving tech sector. UW Comp Sci is a quality program too. And lastly, there is a sizable amount of VC activity.

by dr_ 16y ago

muhfuhkuh 16y ago

"Personally I would love to see the Wall Streeters vanish and be replaced by tech companies doing cool, interesting stuff. But I know it won't happen." That could be the problem with NYC startup scene. You simply _cannot_ get the absolute best and brightest "rock star" developers because they sucked into blackrock, D.E. Shaw, or some such doing rack room quant algorithms. You can't compete with what may as well be a blank check and insane bonuses. You _might_ get lucky and snag the starry eyed idealist fresh out of college, but then again, the "rock stars" in that crop might go start their own thing, or, worse, hear the siren song of Sand Hill Rd. (or Stanford Grad program, which is eventually the same thing).

staunch 16y ago

You'll have to define what you mean by "home run" if $500M+ exits don't count.

gyardley 16y ago

Union Square Ventures is only a small part of the NYC funding landscape. First Round, Betaworks, RRE, DFJ Gotham, IA Ventures, Starvest, SAVP, Softbank, Rho, Greycroft, and that's just off the top of my head (I know I'm missing some), in addition to firms like Spark / True / Kodiak / CRV that often come here to invest and Sand Hill Road firms that are newly opening offices here like Canaan and Accel. Don't get me wrong, USV is a great firm to work with, but you can comfortably do a round in NYC without ever having to talk to them. Don't let the fact that Fred has a popular blog blind you to the rest of the ecosystem. I also think you're underestimating how much interesting technology there is in NYC. Yes, a lot of it is related to advertising or the financial sector. But the type of scale many of these companies are working with requires 'hardcore software' by anyone's definition. I do agree that recruiting is hard here, but recruiting is hard everywhere.

pmikesell 16y ago

Seattle has had some good outcomes. There's some great companies up there and a thriving tech sector. UW Comp Sci is a quality program too. And lastly, there is a sizable amount of VC activity.