{"id":10231,"date":"2019-12-11T13:34:44","date_gmt":"2019-12-11T18:34:44","guid":{"rendered":"https:\/\/blog.brainstation.io\/?p=10231"},"modified":"2019-12-18T10:15:32","modified_gmt":"2019-12-18T15:15:32","slug":"2019-in-review-new-york-tech-on-the-rise","status":"publish","type":"post","link":"https:\/\/brainstation.io\/blog\/2019-in-review-new-york-tech-on-the-rise","title":{"rendered":"2019 in Review: New York Tech on the Rise"},"content":{"rendered":"

We\u2019ve talked about the <\/span>growth<\/span><\/a> of New York\u2019s tech scene, but 2019 might prove to be a pivotal year in the <\/span>city\u2019s emerging status as a global tech <\/span><\/a>leader.\u00a0<\/span><\/p>\n

With the holidays approaching, we decided to take a look back at the past 12 months in the Big Apple.<\/span><\/p>\n

Here are some of the things we learned from the biggest New York tech industry stories and developments from 2019.<\/span><\/p>\n

Government Continues to Support Tech and AI<\/b><\/h2>\n

New York\u2019s municipal and state governments continue to proactively foster growth and entrepreneurship into 2019. For starters, this summer Mayor Bill de Blasio awarded microgrants to seven joint ventures that specialize in workforce development \u2013 particularly those that support New Yorkers underrepresented in tech.<\/span><\/p>\n

The grants total $550K and awardees are expected to deliver a \u201cmix of actionable blueprints for employers and training providers, focused recommendations to policymakers and funders, and specific programming ideas.\u201d<\/span><\/p>\n

\"James<\/a>

James Patchett, President and CEO at the\u00a0NYCEDC<\/span><\/p><\/div>\n

The city is also involved in finding a home for a new Artificial Intelligence center and has invested $7 million into the development of AI technology. These initiatives are intended to help put the city at the forefront of this emerging sector, which, according to the EDC, has seen a 678 percent increase in job postings since 2013, with 12,000 job postings for AI-related positions in New York City in 2018 alone.\u00a0<\/span><\/p>\n

In fact, Startup Genome\u2019s report found that New York boasted the highest percentage of AI and machine-learning job positions in a single U.S. metro area.\u00a0<\/span><\/p>\n

\u201cAs we continue to see record levels of investment and growth in this sector, it\u2019s critical that we establish structures and tools that ensure innovation happens responsibly,\u201d\u00a0 said James Patchett, President and CEO of the <\/span>New York City Economic Development Corporation<\/span><\/a> (NYCEDC). \u201cThe NYC Center for Responsible AI does just that; fostering collaboration and focusing efforts on creating solutions that build trust in the way these transformative technologies are used.\u201d<\/span><\/p>\n

Earlier in the year, the NYCEDC and CIV:Lab, a nonprofit dedicated to connecting urban tech leaders, announced the launch of The Grid, a partnership network for New York\u2019s urban tech community. The network launched with more than 70 member organizations and aims to foster collaboration between businesses, academics, and local tech leaders. The Grid is an expansion of NYCEDC\u2019s UrbanTech NYC program, which has helped establish a number of innovation hubs in the city, including New Lab, Urban Future Lab, and Company.\u00a0<\/span><\/p>\n

The NYCEDC also broke ground on \u201cZero Irving,\u201d a 240,000-square-foot, $250 million tech center in Union Square. Once completed, Zero Irving will feature a training center, incubator, collaborative workspaces, event space, and a food hall.\u00a0\u00a0<\/span><\/p>\n

\"\"<\/a>

Zero Irving rendering.<\/p><\/div>\n

Toward the end of the year, New York invested an additional $4 Million to its $20 million CUNY 2X Tech initiative, which intends to double the number of tech-qualified graduates by 2022. Since launching in 2017, CUNY 2x Tech has helped train over 1,000 students and increased graduate job connection rates by 21 percent.\u00a0<\/span><\/p>\n

“In just two years, more than 1,000 New York City students have already taken the first steps on their road to a tech career, and by increasing our investment in CUNY 2x Tech, hundreds more will be able to stay put and find a fulfilling job in one of the country’s biggest tech hubs,” said Mayor de Blasio.<\/span><\/p>\n

Funding Keeps Growing (and Growing)<\/b><\/h2>\n

2019 was a big year for funding in New York, which solidified its position as the number two venture capital ecosystem behind San Francisco.\u00a0<\/span><\/p>\n

Already, 2018 saw a record-setting $14.25 billion in venture investment, which represented a 91 percent increase over the $7.46 billion generated just four years earlier. This has continued to grow in 2019. As of October, roughly $16.83 billion worth of VC deals were already completed.<\/span><\/p>\n

\"Daniel<\/a>

Daniel Dines, Founder and CEO of UiPath<\/p><\/div>\n

This was led by some very big numbers:\u00a0<\/span><\/p>\n

    \n
  • In April, UiPath, a robotics process automation startup now valued at $7 billion, raised a $568 million Series D funding round.\u00a0<\/span><\/li>\n
  • In June, Dataminr, which specializes in data mining software, closed a $392 million Series E funding round at a valuation of $1.6 billion.\u00a0<\/span><\/li>\n
  • Not to be outdone, real-estate giant Compass brought in $370 million in funding in July 2019, raising its valuation to $6.4 billion.\u00a0<\/span><\/li>\n
  • Meanwhile, Nuvation Bio Inc., a biotechnology company developing oncological therapies, closed a $275 million Series A financing.\u00a0<\/span><\/li>\n
  • Capsule Corp., an online pharmacy startup raised $200 million and plans to expand to other cities across the U.S.<\/span><\/li>\n<\/ul>\n

    Amazingly, there\u2019s still a sense that venture funding in New York can keep growing.\u00a0<\/span><\/p>\n

    \u201cI don\u2019t think that we have seen the apex of it at the moment\u2014I think it continues to grow,\u201d <\/span>said<\/span><\/a> Eric Hippeau, Managing Partner at Lerer Hippeau.<\/span><\/p>\n

    \u201cIf I look at the early-stage pipeline, where we are mostly focused on, the number of companies that are looking for funding continues to grow, maybe 20-25 percent every year,\u201d Hippeau said, and he would know. Lerer Hippeau is New York’s most active venture capital firm, having closed 482 deals since 2010, 287 of which are based in the New York Metropolitan area.\u00a0<\/span><\/p>\n

    NYC is Standing on the Shoulders of (Tech) Giants\u00a0<\/b><\/h2>\n

    CBRE reported that tech company office leasing in Manhattan accounted for roughly 15 percent of the 15 million square feet of office space leased in New York in the first half of 2019. This represented a 10 percent increase from the overall amount of tech office space leased in 2018.\u00a0<\/span><\/p>\n

    Facebook announced in September that it planned to double its headcount in New York City, hiring more than 3,000 people over the next three to five years. To do so, they needed more space, so they signed a lease for over 1.5 million square feet, spread across the 30, 50, and 55 Hudson Yards office towers.\u00a0<\/span><\/p>\n

    \"Hudson<\/a>

    Hudson Yards<\/p><\/div>\n

    This is one of the largest real estate transactions for Facebook, which opened its first New York offices in 2007. The company currently has close to a million square feet of office space.<\/span><\/p>\n

    Meanwhile, Amazon may have backed out of <\/span>their HQ2 plans in Long Island City<\/span><\/a>, but they are still bullish on the Big Apple it seems. The company last week signed a lease for 335,000 square feet of office space in the Hudson Yards neighborhood. Amazon is believed to be moving 1,500 employees to the property in 2021 once it has been redeveloped. This isn\u2019t quite the 25,000 jobs their HQ2 plan was forecast to create, but opponents of that incentive-heavy plan were still celebrating the announcement.\u00a0<\/span><\/p>\n

    \u201cWon\u2019t you look at that: Amazon is coming to NYC anyway \u2013 without requiring the public to finance shady deals, helipad handouts for Jeff Bezos, and corporate giveaways,\u201d Rep. Alexandria Ocasio-Cortez tweeted when news of the announcement broke. When this was, predictably, met with a barrage of criticism, she responded with another tweet:\u00a0<\/span><\/p>\n

    \u201cThe 25,000 jobs figure was a 10-20 year fantasy number from Amazon, not a promise or agreement. In exchange for that lack of commitment, they wanted billions of public dollars. Their Y1 jobs projection was 700,\u201d she wrote.\u00a0<\/span><\/p>\n

    \n

    Me waiting on the haters to apologize after we were proven right on Amazon and saved the public billions https:\/\/t.co\/AC64pG0nZI<\/a> pic.twitter.com\/xzCepkX4AV<\/a><\/p>\n

    \u2014 Alexandria Ocasio-Cortez (@AOC) December 6, 2019<\/a><\/p>\n<\/blockquote>\n