Will the Big Apple be the next Silicon Valley? Startup founders are starting to wonder.
Is New York City the new Silicon Valley? This the question Roger Wu, a startup co-founder, is proposing in his recent article on Quartz. Although reports do show that successful startups in the Valley are valued nearly 40 times more than those based in New York. However, a closer at other factors such as turnover of revenue and risk.
Wu draws from sources like the New Tech City report, and Statistic Brain, that Silicon Valley has a “larger number of more risky” companies, whereas the “overall composition of New York companies is less risky.” According to the Startup Genome Report:
Entrepreneurs in Silicon Valley are much more ‘ambitious’ than entrepreneurs in New York City. Silicon Valley entrepreneurs are 22% more likely to estimate their market size as greater than 10 billion compared to New York City entrepreneurs. They are also almost 2x less likely to estimate their market size to be less than 100 million.
Although New York proposes slightly less risk, the financial rewards are also lower. Nevertheless, there are more angel investments in New York when compared to San Francisco. However, this number dramatically drops when it comes to receiving larger venture capital investments.
Whether New York is a better hub for startups compared to San Francisco remains debatable. Numbers and statistics do point New York as the next tech hotspot to truly rival Silicon Valley, but this shift will take time for The Big Apple to be “taken seriously as a game changer.”