Business Insider explores the reasons behind the recent wave of tech companies.
In an article in Business Insider, James Robinson, a respected venture capitalist and Managing Partner of RRE Ventures, explains the reasons for a renewed surge in startups in New York City. Besides being the place people always favored to live, Robinson says the city now attracts aspiring entrepreneurs because of its capital efficiency and horizontalization of information technology.
From Business Insider:
Capital efficiency means that more companies can afford to move to New York if they choose. A variety of dramatic cost-reducing realities have lowered the fixed-cost of building a software or web startup by an order of magnitude. Horizontalization is more nuanced. Technology is becoming more of an integrated portion of the existing stacks — or the distinct components of hardware, middleware and software required to operate entire IT infrastructures — within businesses rather than a separate vertical industry. As a result, essentially all industries are increasingly able to make use of the lower-cost, better-integrated information technology that open-source software, cloud computing and related innovations are enabling.
Robinson adds that there are very few business centers in the world that are as central as New York City, and it makes sense for companies to set up shop near business centers, where their customers are. He delves into the history of New York City from the first people to set foot on the city who were entrepreneurial, money-seeking traders to the bankers of the 18th century who created new industries and the New York Stock Exchange.