New York City has rapidly been emerging as a hub of tech innovation. But a major, if overlooked, part of that growth has been due to startups founded internationally making NYC their home.
According to a Sept. 30 report released by the Bloomberg Technology Summit, the tech-information sector is now the second largest engine of the NYC economy, responsible for a whopping 262,000 jobs in the city. The growth of the tech sector has driven NYC's share of the nation's private sector employment to its highest level since 1992.
Interestingly, a growing number of foreign countries are making NYC the tech innovation center it's come to be.
From Startup Nation to Startup City
Increasingly, startups founded in foreign countries are putting this booming city on the map. Israel, which has been dubbed the "Startup Nation," is among those nations churning out big startups and moving them to the Big Apple. The nation is already home to more than 5,000 startups, 70 venture capital firms, 24 accelerators and 250 global R&D centers.
It's estimated that New York's startup community consists of at least 200 active startups founded by Israelis alone, including Conduit, Taboola, Kaltura and Fiverr. The majority of these Israeli-founded startups have raised at least $10 million in funding each: Conduit raised $110 million, Taboola raked in $40 million, Kaltura $68 million and Fiverr counts $20 million under its belt. With Israel on the fast track to revolutionizing the tech landscape, in the next decade we can expect to see even more cash flowing into Israeli startups - and importantly, their counterparts in NYC.
A Hub of International Success
It's not just Israeli entrepreneurs who are making New York's startup community their home base. Mendeley, for example, is a London-founded startup that recently set up a New York City office. The startup helps manage, organize and share academic knowledge. Since its founding in 2008, the startup has raised over $2 million -- another testament to the booming class of international startups making waves in the Big Apple.
Another successful startup that has relocated to New York is Shapeways, founded in the Netherlands. This leading 3D printing marketplace and community has raised $47 million since its initial launch in the Netherlands. It has also become a part of the Made in NY initiative, a collection of more than 600 companies spotlighted by New York Tech Meetup, a monthly event for networking, demoing ideas and hearing from tech thought leaders. In fact, a considerable number of foreign-launched startups are already part of the Made in NY initiative, including Adaptly, BillGuard, Fitango and Memrise.
Massive Growth: No Longer on the West Coast Only
Since 2007, New York's tech-information sector has grown by 11 percent and is responsible for one-third of private sector job growth. The city joins San Francisco to make up the nation's two leading "digital cities." As growth continues, it's important we don't forget the international community's dedication to pushing NYC to this top spot in the tech sector.
Foreign countries continue to help make NYC a thriving tech hub. The reason behind the shift becomes clear when we consider everything the city has to offer these startups in return: a central location, an influx of bright minds and a supportive network of other tech innovators. All these elements make NYC an attractive locale. In the end, the city's offerings amount to a win-win for all.