New York City has become the largest truly urban center for tech companies and the second-largest tech hub in the world. Tech companies led by local & international entrepreneurs directly employ 53,000 people, over 1% of New York City’s workforce. Between 2003 and 2013, the New York City tech sector grew twice as fast as Silicon Valley’s in terms of dollars invested, with its companies raising more than $3.1 billion in funding in 2013. Unlike many other urban tech hubs, most of the growth of the New York City tech sector has come in the last decade. Venture funding for tech companies in New York City increased by 240% from 2003 to 2013, and more than 85% of the sector’s current companies and 86% of its current jobs were created during this time.
What's the secret of New York growth? Connections & entrepreneurs supporting each other. Connections between successful founders and new entrepreneurs are a critical driver of the sector’s growth. Data from over 2,500 companies shows that top-performing tech entrepreneurs are more likely than their peers to start new companies, encourage their employees to do the same, mentor, angel invest, and inspire new entrepreneurs. In turn, new founders who are connected to or influenced by these top-performing founders are more likely to be successful than other local tech entrepreneurs. The development of this network of top-performing New York City tech founders has initiated a virtuous cycle of reinvestment that continues to fuel the sector’s growth.