Why New York
We are often asked, if you’re building an enterprise technology VC fund, why do it in New York City and not Silicon Valley? There are actually quite a few reasons, many more of which we will discuss in-depth at a later point, but here are three to start:
Builders & Buyers
NYC has enterprise buyers from all the major verticals: financial services, media, advertising, fashion, and technology. This is by far the single most important factor for an enterprise technology startup — being near your customers to sell to and support them. With 45 of the nation’s top companies headquartered in Manhattan, NYC boasts the largest Fortune 500 presence in a single city — more than five times the amount of San Francisco.
There is also a growing technology community including meetups, government support, educational programs, and service providers like lawyers and accountants focused on the unique needs of enterprise technology startups. Within the US, NYC is positioned with access to the Boston, Philadelphia, and Washington DC tech corridors. Internationally, NYC is conveniently located for European and Israeli startups (shorter flight, closer time zone than the West Coast), so they are starting to make NYC their first US point of contact.
With Buddy Media acquired for almost $800m last year, and eyes on 10gen as NYC’s next big enterprise exit, enterprise is experiencing a renewed focus in NYC. New York has hit an important inflection point in its evolution as a tech hub, and with our natural competitive advantages, we are poised to become the preferred home for enterprise technology.