New York is the world financial center and the capital of business. Therefore, it‘s not a secret that it’s often visited both for leisure and official trips.
Its traditional industries fin-tech and ad-tech are gradually being supplanted by such areas as fashion-tech, food-tech, retail-tech and service-tech. As for services, rentals in New York are more popular than ever, and Advantage car rental JFK is the best proof of this, as it’s one of the most successful providers in the industry.
According to a study published by Compass last year, New York ranks second in the world in terms of the development of a startup ecosystem after Silicon Valley. The city has from 7,100 to 9,600 startups and about 500 thousand workers in the tech industry. As reported by Forbes, for the first time New York ousted Silicon Valley from the first place in terms of the number of applications filed by entrepreneurs to create startups. Well, but what’s the reason?
What are the benefits of New York in terms of startups?
- Strong financial system, strong banking sector and availability of venture capital. According to CB Insights, in 2018, New York companies received a total of $4.5 billion in venture capital, while European companies received $8.5 billion. Thus, funding in New York is only half the investment in the entire European continent.
- A dynamic market: as reported by JLL, the labor market of the techno-industry in New York has grown by 40% since 2014, which is faster than the market of Silicon Valley. In total, the sector in this city has created more than 90 thousand jobs in 4 years.
- Center for International Business: According to the VentureBeat website, 52 companies from the ‘500 Fortune’ list have their headquarters in New York.
- More convenient time zone. Compared to Silicon Valley, New York is closer to Europe, so it’s easier to do business with European companies from there.
How much does the housing rental cost?
In New York, startupers most often choose Manhattan, especially Lower Manhattan – because of the convenient transport links and dynamic life. The areas of Gramercy, Flatiron, Soho and Noho are also in demand. Those who prefer cheaper rentals are usually based in Chinatown and DUMBO.
New York is one of the most expensive cities in the world in terms of the cost of renting offices. As stated by Cushman & Wakefield, the rent of high-quality space in Midtown Manhattan costs an average of about $580/m² per year, in Downtown – more than $1,000/m².
However, New York offers several dozen co-workings. According to AlleyWatch, the average cost of a single workplace in Manhattan is $526 per month, the cost of a collective workplace is $349 per month.
The list of the most popular co-working spaces in New York includes:
- AlleyNYC: co-working on Seventh Avenue with more than 100 jobs and 24 separate offices. The cost of the shared workplace is $450 per month, a separate table is $640, and a separate office for 4–6 people is $1800.
- BluePrint Health: coworking, located in Soho in the same building with the accelerator, also named BluePrint Health. The cost of the collective workplace is $250 per month, a separate table – $400, a separate office for 4 people – $1,250.
- Collab: a collective office located close to the Holland tunnel. The price of the workplace is $650 per month, the cost of the office is $1,750.
- Coworkers: a collective office near Madison Square Park, where the cost of a shared workplace is $350 per month, a separate table is $750, and a separate office for five people is $2,800.
- The Fueled Collective: 24/7 collective office in Manhattan SoHo district, which employs about 30 startups. The cost is $800 per month.
Renting a property in New York is also not cheap. According to Zillow, apartments in the city are offered on average for $2,595 per month. According to Elliman, in June 2018, Manhattan studios were available on average for $2,652 per month, one-bedroom apartments for $3,500, two-bedroom apartments for $4,867, and three-bedroom apartments for $7,154.
How to find financing and support for startups?
According to a study by the Startup Ecosystem, the average amount of investments in New York is $800–900 thousand.
In order to gather startups and investors together, special events are often held In New York: forums, exhibitions, parties, and conferences. You can learn about such events on such sites as Alley Watch, Digital.NYC and Meetup.
New York is the place where hundreds of accelerators and incubators operate. Here are just some of them:
- Grand Central Tech: it sponsors startups that promote the development of the local economy, without demanding a share of capital in return. In addition, the company provides free office space in a building overlooking New York City Central Station.
- Manufacture New York: an incubator for independent designers, working with fashion industry startups. Its headquarters is located in Brooklyn.
- New Inc: Incubator, located in Manhattan. It proves co-working spaces and mentoring programs. The cost of membership is from $350 to $600 per month.
- New York Fashion Tech Lab: an accelerator working with startups in the fashion and design industry.
- Techstars: provides investments in the average amount of $118 thousand and the mentor program in exchange for 7-10% of the startup capital.
Also, you can find business angels in different ways, for example, with the help of The New York Angels, which brings together more than a hundred investors.