4 The TEP Times | Fall 2014 BUSINESS IN NYC
4 The TEP Times | Fall 2014 BUSINESS IN NYC
The Brooklyn Boom : A Community Of Innovation
BY TUCKER REED
We all know the “ garage story ” of tech innovation : college dropouts with too much hair and too little grooming , working in the garage of their parents ’ houses – where they end up developing the next big thing .
Today ’ s entrepreneurs take a different approach . In the Brooklyn Tech Triangle and throughout New York City , tech companies have been instrumental in helping neighborhoods flourish because they are choosing to work in collaborative , creative environments . Not in isolated garages , but in shared work spaces , incubators , and creative office buildings .
Their choice of location rationale seems to be driven by basic economic principles : cheaper rent . But this has led to a density of tech companies , resulting in more interaction from competing and complementary firms , as well as community stakeholders , all of which yield numerous spillover benefits .
Think Meetups in neighborhood bars , increased spending in local stores , and collaboration and resource sharing as in the case of Brooklyn Law School ’ s recently launched Center for Urban Business Entrepreneurship ( CUBE ), which offers free legal services for startups , in return securing priceless real-world experiences for their law students .
In New York City , tech companies are having an outsized impact , and their actions are resonant . In real estate , the tech sector led , at 25 %, the most leasing activity of all sectors in 2012 , according to the NYC Economic Development Corporation , a significant increase from 2002 , when the tech sector occupied less than 10 % of leasing activity .
The clustering of companies in the Brooklyn Tech Triangle has created a momentous demand for neighborhood amenities – like the opportunity to create a 21-acre park stretching from downtown to the waterfront and increased bus service to serve local residents and workers .
More importantly , tech fosters innovation and builds ecosystems – manifested both physically and socially – which have reshaped how we attract quality jobs in the city . Upwards of 500 tech and creative companies have displayed an intrinsic ability to thrive in diverse environments , like the industrial Brooklyn Navy Yard , the neighborhood incubator that is DUMBO , and the 17 million square feet of traditional office space in Downtown Brooklyn .
This adaptability is perhaps explained by a tech world that is diversifying beyond the bounds of behemoths like Facebook , Google , and Tumblr . Today ’ s tech companies are demonstrating fledgling , cross-sector , and collaborative characteristics . The Brooklyn
Tech Triangle is home to a unique mix of innovation firms , from self-funded startups with fewer than five employees to fast-growing firms . And the tech community actively participates in local programming and is drawn to neighborhood-centric events . Some of these events the tech community founded , while others they supported . The latter includes the DUMBO Arts Festival and the World Science Festival ’ s Innovation Square in the MetroTech Commons .
To convey the magnitude of the Tech Triangle ’ s local effect , we commissioned an economic impact study last year which identified nearly 20,000 workers supported by the innovation economy , with a collective $ 3 billion dollar impact on Brooklyn ’ s GDP . Particularly revealing was the projected demand by existing companies for space to grow . By 2015 , innovation economy employees in the Tech Triangle will more than double and occupy approximately 3.1 million square feet . These numbers only reflect companies already operating in the Tech Triangle , not including prospective companies that may move into the area .
The clustering of companies in the Brooklyn Tech Triangle has created a momentous demand for neighborhood amenities – like the opportunity to create a 21-acre park stretching from downtown to the waterfront and increased bus service to serve local residents and workers . For instance , as a clean tech innovation demo , local startup BioLite worked with the DUMBO Improvement District to launch DUMBO Firepit , a contained outdoor fireplace that doubles as a phone-charging station and lighting source for the neighborhood ’ s Christmas tree . Equally important are assets such as the Urban Future Lab , NYU-Poly ’ s clean tech incubator , which will house startups and showcase groundbreaking technology – or the NYU Center for Urban Science and Progress ( CUSP ), which will be the leading institution in the emerging field of urban informatics . CUSP draws on data to strengthen and improve quality of life in the urban environment .
Such public works do not just privilege a handful of tech companies . Rather , they provide far-reaching benefits to all who live , work , and visit the Brooklyn Tech Triangle . In Downtown Brooklyn , we are welcoming them with open arms .
Tucker Reed is the President of the Downtown Brooklyn Partnership , one of the lead organizations behind the Brooklyn Tech Triangle initiative .
Overcoming the Three Big Challenges of Starting in NYC
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BY STEFANIE LEMCKE
Making it in New York City is a challenge . Regardless of whether you are from Berlin , Barcelona , or Boston , New York City treats everybody equally and businesses are expected “ to figure it out ” without much hand holding . New York International , consultant partner to the New York City Economic Development Corporation ’ s World to NYC program ( www . worldtonyc . com ) and other international development programs , has put together a list of what companies regard as the three big challenges of doing business in New York and how to overcome them .
• Trust : Any company coming to New York needs support . There are numerous professional services available , most of them are valuable for newcomers though never cheap , but finding trusted partners and people in your industry remains challenging .
• Cost : The combination of high costs and competition with low margins will remain a key consideration for many businesses
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. Technology often has a different approach . Even without any profit , New York City ’ s focus on valuation can make the city highly attractive .
• Network filter : New York City is home for some of the best people in various industries and fields . Talking to those industry leaders , can help your business immensely , you need to get their attention with a “ qualified introduction ” which can take a lot of time .
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The various programs run by the City of New York , the accelerator programs and the dozens of co-working spaces has made the start in New York much easier in recent years . What does the playbook for New York City look like ? It has three simple components :
• Coming to NYC starts at home : A company like Klara . com ( page 11 ) saw a demand for their product in the US before moving to New York . Even if that is is not the case , online research into the market , investors , and partners is easier done at home .
• Never walk alone : A company like KISI . com ( page 6 ) won three startup challenges in one week - even New Yorkers took note of that . With the support of leading institutions KISI became part of the NYC tech ecosystem fast and always had somebody to turn to for advice .
• Never be dull , and “ ABC ”: Business in New York starts on playgrounds , at birthday parties , and in bars . A company like Etsy . com got one of their first investments after their co-founder was drinking with someone in a bar , pitched his idea , and closed the
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deal (“ ABC – always be closing ”). By now , Etsy is generating more than a billion dollars in revenues and supports thousands of local and international entrepreneurs selling their products on their platform .
One of the most successful international entrepreneurs of all time in New York City might have been the young Auguste Bartholdi from Colmar , France . He pitched and tweaked his idea , so everybody in New York found something interesting in it . After 15 years his vision came alive : The Statue of Liberty .
We at New York International , proud partner and organizer of the 2014 TEP conference , are dedicated to helping others " make it in New York ." With our website , newsletter , conference series , business development advice for entrepreneurs and our corporate programs we ’ ve become part of the thriving New York ecosystem . It has never been easier or more fun to come to the Big Apple .
Stefanie Lemcke is a principal at Quantum Media and co-founder of New York International
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