The Impact of Startups on New York City

The Flatiron district in Manhattan is home to many technology startups
The Flatiron district in Manhattan is home to many technology startups | © Aurusdorus / Pixabay

New York’s startup scene is one of the fastest growing in the world, and is considered to be second only to San Francisco’s in terms of size and dollars invested. But what does having a huge startup community bring to the city?

New York’s technology startup community is just 30% the size of San Francisco’s, but it’s been growing for some time. Between 2009 and 2013, New York city tech startups enjoyed a 200% increase in investment, and a 33% rise in the number of jobs created.

Towards the end of 2017, venture capitalists invested more money in New York companies than those in the San Francisco and North Bay Area, knocking Silicon Valley off its long-held top spot. The numbers, from a report by PwC and CB Insights, are a landmark for New York’s startup scene, which saw $4.227 billion of investment in the third quarter of that year.

New York’s strength in other industries means most of the technology companies are associated with other sectors, like media, finance, fashion, or healthcare, which is largely in contrast with the technology-only startup world of Silicon Valley. Many of the city’s most successful technology companies operate across sectors, such as Buzzfeed, Bloomberg, and Etsy.

This type of success is partially aided by incubators, organizations that work with startups to get them funding and guide them through their early years. One of the biggest incubators in New York is Future Labs, which is run by New York University’s Tandon School of Engineering. Future Labs is a network of business hubs, and recently crunched the numbers to estimate how much money its startups have contributed to New York’s economy. The results were impressive: $4.06 billion since it launched in 2009.

The incubator, which is supported by New York City Economic Development Corporation, also claimed it has made 3,201 jobs in New York state, including 2,740 in New York City.

“Time and time again our academic institutions have served as major economic drivers, launching a new generation of companies in New York City,” said New York City Economic Development Corporation President and CEO James Patchett. “We are proud to have worked with NYU Tandon to help found the first city-funded incubator in the city, which has been a hotbed for innovation, job creation, and opportunity. The impact of NYU Tandon’s Future Labs further proves that public-private partnerships are critical to real economic growth.”

landscape with balloons floating in the air


Connect with like-minded people on our premium trips curated by local insiders and with care for the world

Since you are here, we would like to share our vision for the future of travel - and the direction Culture Trip is moving in.

Culture Trip launched in 2011 with a simple yet passionate mission: to inspire people to go beyond their boundaries and experience what makes a place, its people and its culture special and meaningful — and this is still in our DNA today. We are proud that, for more than a decade, millions like you have trusted our award-winning recommendations by people who deeply understand what makes certain places and communities so special.

Increasingly we believe the world needs more meaningful, real-life connections between curious travellers keen to explore the world in a more responsible way. That is why we have intensively curated a collection of premium small-group trips as an invitation to meet and connect with new, like-minded people for once-in-a-lifetime experiences in three categories: Culture Trips, Rail Trips and Private Trips. Our Trips are suitable for both solo travelers, couples and friends who want to explore the world together.

Culture Trips are deeply immersive 5 to 16 days itineraries, that combine authentic local experiences, exciting activities and 4-5* accommodation to look forward to at the end of each day. Our Rail Trips are our most planet-friendly itineraries that invite you to take the scenic route, relax whilst getting under the skin of a destination. Our Private Trips are fully tailored itineraries, curated by our Travel Experts specifically for you, your friends or your family.

We know that many of you worry about the environmental impact of travel and are looking for ways of expanding horizons in ways that do minimal harm - and may even bring benefits. We are committed to go as far as possible in curating our trips with care for the planet. That is why all of our trips are flightless in destination, fully carbon offset - and we have ambitious plans to be net zero in the very near future.

Winter Sale Offers on Our Trips

Incredible Savings

Edit article