Why New York and Boston Startup Ecosystems Dominated in 2019
Industry leader Startup Genome just released their first startup ecosystem report, spanning the globe and clocking in at over 200 pages. That's not too surprising, considering the startup economy generated $2.8 trillion in value over the past two years - doubling earnings within five years. Startup Genome identified 46 unique ecosystems around the world, whose startups are contributing at least $4 billion to their local economies. Boston and New York City both cracked the top five - in good company with Silicon Valley, London, and Beijing. Here's why:
Regardless of geographic variety, Startup Genome found that certain disruptive technologies are capturing the global startup stage. Currently, the fastest growing areas are:
Advanced Manufacturing and Robotics - 189% increase over five years
Agricultural Tech and New Food - 171% increase over five years
Blockchain - 163% increase over five years
AI, Big Data, Analytics - 77.5% increase over five years
And despite blockchain ranking third in overall growth, the sector has clinched post-IPO growth by a long shot:
Deep Tech has become one of the largest areas of interest, encompassing life sciences, robotics, and AI. All three of these sub-sectors require substantial upfront investment for research and development, and are more likely to thrive in cities with strong university networks and experimental facilities. Such has been the case in both Boston and New York - cities combining traditional economic strengths with emerging research opportunities.
If you're a startup in Boston, you understand what a wealth of opportunities the city brings. Boston currently ranks #4 overall but holds second place for life science startups. Like Silicon Valley, Boston life science startups have received over $30 billion in early-stage funding over the past five years. But why the interest? Currently:
Boston is #2 in both life sciences and advanced manufacturing & robotics
Startup employees have a network of over 1,100 life sciences companies, and 7 teaching hospitals
The city has succeeded in making tech accessible in classrooms - from maker spaces to 3D printing facilities
Because life science startups tend to require heavy initial investment, to sustain research and development, the extant network provides a competitive edge to emerging companies. Boston is also in the top 3 for wage gains, indicating greater opportunities for startup employees to grow alongside their companies.
New York Startups
Like Boston, New York is thriving in the life sciences sphere. With nine academic medical centers, 50 hospitals, and over 100 research foundations, startups benefit from one of the most collaborative research environments globally. From biotech to medtech to pharma, New York's life sciences sphere is experiencing an unprecedented boom. Additionally, New York startups are excelling in:
Artificial Intelligence, Big Data, analytics, and cybersecurity
New York has over 100 companies, and 6,000 employees in cybersecurity alone
The city has the highest percentage of AI and machine-learning positions in a single U.S. metro area
New York also ranked in the top 10 ecosystems for supporting female entrepreneurship and representation in startups. This diversity only emboldens the city's success, as Startup Genome noted that "female founders tend to build more relationships with other founders" and are more mission-driven in their work. Both further a sense of local connectedness - encouraging collaboration, partnerships, and intellectual exchange for the next generation of startups.
Custom IT Solutions for Your Startup Ecosystem
As more startups flock to New York and Boston, the competition will only heighten. If you want your business to thrive in the competitive atmosphere, your employees need the best tools on the market. From productivity suites, to application development, to securing your data in a co-working space, our experts can match your business to the products it deserves. Whether you've set up shop, or are operating remotely - building off a legacy system, or born in the cloud - we can help. Reach out for a free consultation, and learn how we can grow your company together.