Monday, 20 May 2013

Tech Hubs Flourish Outside of Silicon Valley


Tech Hubs Flourish Outside of Silicon Valley

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Silicon Valley has long been at the forefront of the tech startup scene, but due to the growth of emerging companies in other areas of the U.S. and worldwide, it's hardly the only hub sparking innovation. And in recent years, there's been a greater spotlight on New York City.
In fact, according to a report by financial research analyst firm PrivyCo., more than 100 acquisitions of tech startups occurred in New York City last year, amounting to $8.3 billion. The city is now only second behind Silicon Valley in terms of startup acquisitions.
And thanks to the expansion of larger companies such as Facebook and Googleto the New York area, this is only the beginning of the bigger trend.
To help facilitate economic growth in each of the five boroughs, the New York City Economic Development Corporation is following the startup movement closely. It's a non-profit whose goal is to encourage redevelopment programs and ultimately create new jobs across the city.
The organization has been focused on building an engineering campus — calledNYC Tech Campus (Applied Sciences NYC) — in the boroughs. With Cornell University and Technion-Israel Institute of Technology partnerships, the initiative will provide 20,000 construction jobs and 8,000 permanent jobs, along with more than $23 billion in economic activity over the next 30 years.
At the same time, capital firm Brooklyn Bridge Ventures has also been watching growth in the New York City area, specifically Brooklyn. Partner Charlie O'Donnell believes the region is preparing to become an even bigger tech hub in the future.
"Why uproot talent to move to a central location if they're most inspired to live elsewhere?" O'Donnell said. "That centralization didn't historically work so well for Microsoft or AOL, when it came to being creative and cutting-edge."
"We have such a creative talent pool here, that it just makes sense for companies to locate not just sales teams here — but real hardcore tech and creative product folks," he added.
O'Donnell's eyes are on another major project underway to make NYU's Poly tech campus in Brooklyn a more innovative participant in the city's tech ecosystem. The same goes for the CUSP (Center for Urban Science and Progress) at the old MTA headquarters, which is focused on urban living issues — energy, sustainability and transportation.
As for trying to get into the tech scene — whether in New York or elsewhere — O'Donnell said entrepreneurs shouldn't think of it as an easy, glamorous career choice.
"There are too many people who think starting a company is cool. It isn't," O'Donnell said.
"There are too many people who think starting a company is cool. It isn't," O'Donnell said. "It's ridiculously hard and normally doesn't pay off. Solving real problems, however, is rewarding. Founders need to spend more time working on finding the right problems than throwing ideas off a wall to see what sticks and becomes fundable."
O'Donnell also advises aspiring entrepreneurs to hone in on an area, and master that domain.
"Become the expert in your space and the person most qualified to solve the problem you're trying to solve," he added. "Do your homework. Massage the octopus."
Tech education continues to grow as the startup industry bubbles in areas outside Silicon Valley. For example, the General Assembly offers hands-on classes and workshops for entrepreneurs on small campuses all over the world, ranging in content from how to develop a brand on Facebook and Twitter to building a mobile app. Classes are taught by professionals from major companies such as The Wall Street Journal, and vary between 90-minute to 16-week courses.
The New York City-founded company, which has been teaching skills since 2011, aims to help those looking to grow a startup and teach them how to use the tools they need.

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