

Why the NYC Startup Scene is Hot (Hint: Not Fred Wilson)  - MediaSquirrel
http://www.metamorphblog.com/2010/03/why-the-nyc-startup-scene-is-hot-hint-not-fred-wilson.html

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mtalantikite
Do we really need to see these 'This is why NYC is awesome for startups' posts
every week?

I mean I'm getting sick of these and I live here. I can only imagine how non-
New Yorkers feel about them.

~~~
dnsworks
Living in Seattle was the same thing. Tons of people who had a chip on their
shoulders about the Bay Areas's startup scene. It was a constant onslaught of
locals trying to prove that Seattle's was just as vibrant.

~~~
cmallen
NYC here, and I am _really_ sick of hearing about this.

I just don't care anymore.

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jfi
I think a big factor of "why now in NYC?" was the recession: with firms
collapsing, job security at an all time low, and dismal salary and bonu$
prospects, all the talented individuals that had flocked to Wall Street and
hedge funds were now leaving or forced out. This yielded two things: smart,
networked, tech savvy individuals that had monetary padding (via a few years
of pulling down salaries and bonuses back in the gilded era) to bootstrap an
idea and the network to tap into AND investment oriented folks looking for
opportunities that offered a better ROI than the dismal public capital
markets'.

~~~
pw0ncakes
There's some truth to this, but it's probably overstated. Almost all of the
smart people on Wall Street are quants and, except in large-scale layoffs,
they aren't likely to be let go.

Also, the deciding factor regarding whether New York can become an
innovation/startup hub will be if the rents come down fast enough. So far,
signals are mixed but more negative.

~~~
btilly
There are a _ton_ of smart people on Wall St who aren't quants. And I
personally know startups being started because of exactly what the parent
said.

Incidentally based on my experience of NY, a seldom noticed major drag on
startups is that by default if you create a startup while working for someone
else, your employer can declare it a work for hire and just take all of the
associated intellectual property. (Said default is reinforced by the standard
employment contracts.) In California your right to own what you do in your own
time with your own property is protected by state law. This is huge.

How many startups never happen because people have been burned by this, or
know people who have been burned by this?

~~~
pw0ncakes
_There are a ton of smart people on Wall St who aren't quants._

I'm including the smart traders who aren't considered quants now but would
have been classified as quants 5 years ago.

 _How many startups never happen because people have been burned by this, or
know people who have been burned by this?_

I haven't heard of it, but it may happen.

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MediaSquirrel
Just to be clear, I'm not hating on investors. I just think that often they
get a disproportionate amount of credit and glory as compared to the founders
who slave away in anonymity for long periods in an effort to create something
of value. VC's have their place, but it is not at the center.

~~~
apu
Sure, but when you're talking about what makes a place better than another for
startups, what matters is not who's more important, but what the limiting
factor is.

And to me it seems clear that in NYC it's investors, not entrepreneurs. Sure
there might be tons of smart & innovative hackers here. But if most of them
aren't going to get funded, then they're gonna move to the Valley.

(I realize more investors could move here/get started here, and it does seem
to be happening, but they have much more inertia and are rich, so they don't
_have_ to move, unlike most cash-strapped entrepreneurs looking for the next
bit of funding that will allow them to really expand.)

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matthewer
Name ten startups that are awesome from NYC off the top of your head. Ten with
products you use at least once a week? I live in NYC, and am happy to see
things growing, but NYC is not 'on fire.'

