Stop Comparing. Start Building.

For whatever reason, every six months or so there’s a flair-up on local listservs or blogs more or less titled “NYC vs Silicon Valley.”

These types of comparisons, by entrepreneurs and pundits new and old(er), are not remotely productive, and they’re almost always focused on the wrong, anecdotal data.

Truth be told, we should look at NYC’s ecosystem not relative to other ecosystems, but holistically in regards to itself. Let’s stop comparing ourselves to the valley, like a middle-schoolers anxiously compare themselves to their peers; instead, let’s think about what we have and what we need to do better. If there are things we need to do better, sure, let’s look elsewhere for great models to inspire us, but this tit-for-tat comparison has got to go.

Do we have the self-confidence and ambition to do this?

Following this post, I’m going to layout what I believe is the “State of New York Technology.” In that post, I won’t compare New York to Silicon Valley unless I find something in New York that I wish we could improve on. Then I’ll look at examples found elsewhere. I’m keeping these two posts separate because I want this one to be a retrospective “Stop Comparing. Start Building.” cry, and the next one to only look inward and forward, other cities be-damned.

UPDATE: I’ve now posted my State of the NY Tech Industry piece.

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  • The difference between going to work for an old, big company, and going for a startup is the difference between the Bay Area and NYC now. NYC is the startup.
  • Yeah - become a bit of a tired, categorical, linkbait-ey meme now. As with so many other __ vs. __ debates, I think it comes down to: each have benefits...certainly arguable that one...yes, often the Valley in this case...may have more than others (although depends a lot on specific space and situation) but the good news is that there are more options than ever before on viable places to start a company -> so pick whichever makes sense given your own circumstances and criteria -> "stop comparing, start building" -> eventually strive for both.

    I'm a living, breathing (NY-based) example for my (SF-based) company. Yes we've benefited a lot from being based out west, but we've also explicitly considered the trade-offs and concluded that having a presence in New York is an important advantage we don't want or plan to give up.
  • Dave Whittemore
    Nate - I agree with you that we need to focus on actionable ways to improve NYC's startup ecosystem. One of the biggest limitations of NYC is having support from educational institutions for startups and a constant stream of viable employees for startups from educational institutions. That's one of the big issues we're trying to address with Columbia Venture Community: Columbia and other NYC schools need to drive awareness of startup and entrepreneurial career pathways, and to provide resources and support to the community to a greater degree, the way Stamford and MIT do.

    Dave Whittemore
    http://www.meetup.com/ColumbiaVC/
  • Flow of University <==> Startup intellectual and human capital is my #1 issue too
  • I think it is totally reasonable for an entrepreneur to compare locations when thinking about where to build some or all of his/her business. You *should* do this. Some companies stay, some companies move, some companies split (like Return Path, which has their operations in both NY and Colorado).

    "NY Founder" is right in the comments that sometimes a company takes West Coast money and gets pressured to move out west -- I knew a group of Brooklyn entrepreneurs backed by Redpoint, and that is exactly what happened -- they moved to SF. C'est la vie.

    The NYC tech scene doesn't need to get defensive about all this. I've been part of startups in Austin, SV, and NY. Every location has its own strengths and weaknesses. If you're mobile, then pick the place which has strengths that match what you want to do. I happen to be very glad to be doing my current startup in NY, and think it will bring competitive advantages.
  • antifreeze
    For what it's worth, I left NYC for SV in early 2006 because at that point NY just didn't feel it could sustain a really viable tech startup and associated community whose ambition wasn't quick flip.

    But after having spent nearly three months back in NY at the end of 2009, I can honestly say that the situation in NY has already changed dramatically for the better.

    NY even has one thing going for it that SV sorely lacks: deep associations into non-technical markets. For instance, if a founder is SV is starting a health care company, there is a large chance she must scour her network, send intros, rent a car to go meet someone, etc. just to get to the resource if that resource doesn't look like "tech/hacker god". In NY, that person's at the coffee shop at the corner, or the person sitting next to you at NYTM can introduce you to the person you're looking for in one shot.

    To put it another way: SV networks are deeply focused back on themselves. It's a tight mesh where the majority of the outlying connections focus back into the thick of the web. NY's networks are strongly externally focused. The edges of the network reach out into into a gazillion places, health care, pharmaceuticals, entertainment, fashion, the list goes on and on.

    SV is a great place to start a deeply tech-focused business. But if you want to start a business that caters to a non-technical industry, I'd say NY is skyrocketing to the top of the list (if it's not already there) of places to start that company.

    Sorry for the NY/SV comparison. They're just different environments with different strengths. And NY is much stronger now than when I left almost four years ago. I'd love to come home and start something new in the future (and I'd be comfortable doing it now)!

    Seth / @AntiFreeze
  • good to see you write this - i've been thinking about this the last week and was going to do a post (still might) but you are correct.

    enough with the damn comparisons - it's highly unlikely any developer sitting in SF/SV is going to move here (or vice versa). The posts that people wrote on CN in the "I Love..." series looked at why x city was great but didn't look at x city versus the valley.
  • thanks Allen.
  • organprinter
    There is real competition between any city and any other city when anecdotal data is used to compare. Startups in Houston love to have this discussion w/r/t other Texas cities and of course the SF Bay area. These discussions never lead anywhere though and seem to be diversions from a real discussion which could positively address "How do we make it work where we are?"
  • A little noise never hurts a startup. You could retitle your post "Stop comparing...unless it gets you publicity that leads to cash flow"
  • NY Founder
    I don't think this is right. There _is_ real competition between NYC and the Valley as tech hubs, because people are mobile enough to switch between them. We face constant pressure from potential investors to pack up and move the company out West, where you're closer to capital and talent is easier to find. It's not good enough to be _able_ to build a company in NY, it has to be the _best_ place to build your company. Otherwise you should get your ass on a plane.
  • I don't buy the general competition argument. Again, the question should be "Is NY's market efficient in _________?" As I'll outline in my next post, I feel the answer is yes in nearly every one. Money is certainly efficient in NYC. Just because you don't get funded here doesn't mean otherwise.
  • NY Founder
    I don't think that there's general competition either - it's certainly not the case that _every_ company is better off in the Valley (or better off in NY). There are definitely businesses out here that _should_ be out here, because NY is the best place to run them.

    That doesn't mean there's no competition, though. The fact of the matters is that a founding team can pack up and move across the country if they have to, and the barriers to doing so aren't all that high. If the Valley (or Boston or Austin or Boulder) is the best place to run your business, you should go there.
  • Amen. The insecurities of startups and their culture seem to be portable, as we have similar discussions here in Philly and every other city I've had interactions with.
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