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Many tech companies relocating to NYC

  • July 17, 2012

Many tech companies relocating to NYC

For years, aspiring tech startups essentially had one choice to launch their companies: Silicon Valley. That location, the southern part of the San Francisco Bay Area, offered a place with the infrastructure and contacts needed to nurture young, computer-based businesses.

However, after several decades of dominance, a competitor has emerged to challenge the location's primacy. In the past few years, New York City, long known for being the center of publishing, finance and theater, has made a push to rival the West Coast's reputation as the place to go for burgeoning technology companies.

There are many factors in this trend, but the most crucial involve the Big Apple's employment pool, media-rich location and easy access to investors. For these reasons, many businesses are choosing to rent offices in the city and forego the traditional wisdom of heading west.

"There is a renaissance in the New York tech community," Andrew Rasiej, managing director of NY Tech Meetup, told The Huffington Post.

The numbers certainly support Rasiej's claim - nearly 500 startups received investments between 2007 and 2011, according to the news source. Moreover, startup funding in the city has increased 32 percent over that time, even as it has declined 10 percent in the rest of the country.

It's not just new companies making the move to New York City, however. Many established tech companies are moving out of state to take part in New York's budding scene. More than a dozen tech companies have relocated from traditional hotbeds such as Silicon Valley since 2007, according to the Center for an Urban Future.

New York City's wealth of capital and long history of housing large companies makes moving to the metro a popular choice. Doug Imbruce, founder of the tech startup Qwiki, decided to call the moving van lines and head back to Manhattan after forming his company in Silicon Valley, according to The New York Times.

"We went to Silicon Valley because [the investors there] understood how big we wanted to get," Imbruce told the news source, "and we moved back to fulfill that promise."

One of the major contributing factors into Imbruce's decision was the city's saturated media market. Shortly after his arrival in New York, his company and ABC held meetings to discuss a collaboration. Shortly thereafter, the two groups announced a partnership.

For tech startups looking for a new location to expand their reach, New York City is proving a popular destination. In a complicated corporate move, like those involving growing technology companies, professional relocation and moving services can be a big help. Hiring relocation movers can allow young companies to leave the brass tacks to professionals, while they focus on utilizing the city's resources to their advantage.

 

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