The venture capital sector in New York imploded after the dot-com bust, just like its cousins out on the west coast and elsewhere. But over the past decade, the city has been slowly retooling into a venture capital hotbed where start-ups in software development, media and advertising are thriving.
Google’s acquisition of DoubleClick had an accelerating effect on New York’s venture capital community, reports Wall Street Journal online. Co-founders of DoubleClick have become angel investors, helping to spawn new start-ups such as the Gilt Groupe, an invitation-only luxury goods shopping site; Silicon Alley Insider, a business news site that covers the VC industry; and Panther Express, a content delivery network, just to name a few.
And like their counterparts out west, entrepreneurs in New York learned from the flame-outs of the past and are now more focused on building viable businesses and achieving profitability. In addition, since many of the young companies in New York are in financial services, Internet software and advertising, they have lower start-up costs.
It has all led to a very healthy venture capital job market and community in New York City. In fact, according to PricewaterhouseCooper Money Tree data quoted in the article, New York ranks fourth in total venture capital investment, after Silicon Valley, Los Angeles and Boston. And in terms of funding for software companies, New York ranks second, behind only Silicon Valley, for venture capital funding in the second quarter of 2010.
Would you consider heading to the New York City area (if you aren’t there already) to pursue venture capital opportunities? Add your comments below.
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