New York: The New Center of Gravity of European Tech

At the time, nevertheless, the pattern was simply beginning..

As a result, sooner rather than later on, European start-ups will begin analyzing their United States growth method. One stealthily easy concern of that technique is “where should we construct our US headquarter”?

Twitter lends itself to statements that sound really conclusive, and maybe intriguing, with few subtleties. Let me include a couple of cautions:.

While its definitely possible to develop a tech giant solely in Europe, the path to constructing a worldwide, category-dominating company will, for a lot of European tech startups, need developing a strong presence in the United States.

Its entirely possible to develop terrific start-ups in Europe only, without being active in the United States (Deliveroo, Doctolib, Vinted, and so on), as pointed out above.
London, Berlin and Paris are the clear leaders of European tech. Many other locations are incredibly active (Nordics, Netherlands, Spain, Portugal), and numerous hubs are emerging in Eastern Europe.
There are numerous other options worth considering on the East Coast– various European startups have selected Boston, Washington DC or Atlanta (see OutSystems, out of Portugal).
San Francisco remains the clear center of the tech universe.

However, the stellar rise of New York as a tech center over the last few years has altered things considerably..

A number of days back, I tweeted this:.

The sheer number and density of European startups relocating to New York is very apparent to anyone hanging out in the community. It genuinely went from a trickle to a full-on flood. There are likewise numerous European business owners starting US business out of New York (a la Datadog)..

Up until a few years earlier, there wasnt much of a debate: Silicon Valley, in spite of the distance and time distinction with Europe, was the obvious option. There was essentially no place else to go, except maybe Boston for life sciences.

Back in 2014, I put together a discussion that highlighted the merits of New York as a fantastic location for European start-ups to construct their US headquarters: NYC: A Natural Home for European Entrepreneurs..

Cautions aside, I believe that New York truly has actually become a new center of mass for European start-ups.

Quick forward six years to today, and it feels like the “Europe to New York Corridor” has really emerged..

According to La French Tech, there are over 200 French start-ups presently active in New York– whichs just one European country!

Off the top of my head, here a few European unicorns (and more) that have a United States HQ in New York, or have re-headquartered completely in New York:.

Spotify (Sweden, B2C).
UiPath (Romania, B2B).
Collibra (Belgium, B2B).
Dataiku (France, B2B).
Celonis (Germany, B2B).
Letgo (Spain, B2C).
N26 (Germany, B2C).

This is also an especially high quality group, that consists of numerous fast-growing business.

What are the essential motorists behind the acceleration of the trend?

Theres now a lot of tech skill in New York. You no longer require to “pull from finance”. Lots of people have actually worked at one, 2 or three startups back to back throughout their careers. This will only speed up.
Theres likewise a lot of capital in New York, from seed to development. The two most active US investors in European companies (Insight and General Atlantic) are both based in New York.
New York is now a completely mature community. When known for commerce, media and ad tech, has actually ended up being a great place to construct any kind of business. Its telling that, out of the three largest tech successes in New York, 2 are core business infrastructure business: Datadog and MongoDB.
New york city has deep connectivity to the West Coast. Google has massive workplaces in New York. Facebook (which just rented 1.5 M sq feet at Hudson Yards, here), Amazon (even without HQ2), Salesforce (which has its own tower in NYC as well), Apple, Stripe, etc.– everyone is here, in a major method. All major Silicon Valley VC firms greatly invest in business based in New York.

An ever increasing variety of European startups have concerned this conclusion, turning New York into a brand-new center of gravity for much of the most enthusiastic companies and entrepreneurs coming out of Europe.

Europe has actually considerably stepped up its video game. Theres simply a lot more European startups that have international ambitions. This in turn has increased the variety of business trying to find a United States house, with much of them landing in New York, which has actually assisted create a network impact of sorts.
San Francisco has actually experienced its own problems– saturation, costs, regulatory problems– and a growing number of individuals have been transferring to other parts of the US.
With Brexit, London has actually ended up being a less apparent choice, if youre a non-British business thinking about your very first international workplace.
Technologies and procedures around dispersed offices and remote work have considerably enhanced over the last couple of years. Numerous less people these days question whether you can genuinely construct an effective start-up with a foot on each side of the Atlantic: leadership, sales and marketing in the US, and product and technology in Europe.

What * has not * changed over the 5-6 years:.

The fundamental geographical advantage of the East Coast over the West Coast (seen from a European viewpoint), particularly the time distinction and range, has actually certainly constantly existed.
New york city has constantly had an unique density of possible clients, as lots of Fortune 1000 companies are either headquartered in New York, or have a large workplace there– especially crucial for B2B business.
New York has actually constantly been culturally closer to Europe.

In summary: now that New York is a large and completely mature tech environment, where you can find a lot of skill and capital, why sustain the borderline unworkable time difference with San Francisco?

The world, likewise, has changed:.

New York is now a totally mature ecosystem. Its informing that, out of the 3 biggest tech successes in New York, two are core business infrastructure companies: Datadog and MongoDB.
New York has deep connection to the West Coast. Google has massive offices in New York. All significant Silicon Valley VC firms greatly invest in business based in New York.

What * has * altered over the last 5-6 years:.


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