Why NYC?

New York is a leading international hub for a wide variety of industries, ranging from technology and IT to creative and media/entertainment. Rapid technological changes are re-shaping virtually all commercial industries. Within this shifting landscape in business, many small and medium-sized enterprises (SMEs) – including startups and scale-ups from Europe – are deciding to expand their business to New York.

Move towards the opportunity

New York City positions itself as a leader in tech. Finance, advertising, media, fashion, and retail are among the city’s most dominant sectors. Other sectors are rapidly emerging in New York, such as digital health and education technology. Its reputation as a leader in tech is maintained by the countless incubators for new ideas and ventures, the attractive destinations in tech for any existing industry, and a gateway for global investment. The city has a prolific network of professionals and thought leaders, the abundance of funding sources, and a world-class pool of creative and innovative talent. This makes New York City a thriving, international hub of commerce and innovation that fosters opportunities for companies and workers.

The economy of New York City is growing almost three times faster than the overall US economy. More specifically, the overall NYC tech ecosystem has grown by more than 18% in the last decade. It is estimated that employment within the tech sector will only continue to grow.Furthermore, the tech ecosystem has a $125 billion in total annual spending and over $5.6 billion in annual tax revenues (2014).

New York offers unique opportunities for startups and scale-ups that would like to expand and grow in New York. Whereas startup hub Silicon Valley generally only focuses on technology (hard- and software), technology in the New York economy is an integral partof the many sectors.

New York City has the world’s second largest venture capital (VC) community when it comes to the number of active investors and size of deals. Currently, the number of venture capital deals in New York City is growing faster than Silicon Valley and Boston. There are over 80 active VC funds operating from New York City along with a large number of corporate funds and further active angel investor groups. Access to capital is of vital importance to quickly growing business. The availability of growth capital in Europe can be limited. Therefore, scaling to the US can help to attract capital.

The large regional economy and the (only) 6-hour time difference between New York and Europe make it an ideal landing spot for European businesses wanting to scale into the US. The Big Apple is a pressure cooker for innovation and transformation of the traditional industries.

Yet startup costs are also high

Most international startups are interested in the US market because of its large market potential. However, startups often don’t realize that there are many barriers when entering the US market. The American business culture is quite different. In-depth market research can be time consuming. Costs of setting up shop in New York, including real estate-, financial- and legal matters are approximately two to three times higher compared to leading startup hubs in Europe. Additionally, the tax system – when it comes to selling products or services throughout the US – can be complex and difficult. All of this makes doing business in the US more costly and labor intensive for international startups and scale-ups than one might expect.

The Halve Maen PIB won’t be able to take away those difficulties. However, it can help navigate through these demands and provide a soft-landing for European startups in the US.