Location, location, location. Maybe it’s time to move your startups to one of these NYC zip codes that seem to be funding hot spots…
Richard Florida over at The Atlantic – Cities recently published an article on “How East Coast Tech Startups Became a Downtown Phenomenon,” where they took a look at the concentration of startups in major cities across the east coast. The New York data compiled from a recent New Tech City report revealed some interesting insights into where the VC dollars have flowed between 2007-2011.
Here is a list of the zip codes that received the most amount of venture capital investment, ranked in millions:
Murray Hill weighs in at the top of the list with $357 million in VC funding. Yes Murray Hill has more than bars, restaurants, young Wall Street types and recently graduated Long Islanders.
Just south of Murray Hill, both literally and figuratively, Gramercy Park secured the second highest total, with $257 million. Is there something in the water in that part of town?
10012 encompasses SoHo, Nolita, NYU and comes in with a total of $251 million. One of the hottest parts of the city, I fully expect this area to move up a few spots in the next report, thanks to companies like ZocDoc and Foursquare.
Gramercy Park, Union Square, NYU, and NoHo totaled $217 million.
Bryant Park, the Garment District, and Hell’s Kitchen weighs in at $210 million.
Chelsea and parts of the West Village have experienced a boom over the last few years and I also expect this area to move up in the rankings. The 10011 came in at $161 million.
Tribeca and Chinatown attracted a cool $145 million in capital.
10001 land, encompassing Chelsea, K-Town, Penn Station, and the heart of midtown, comes in at $136 million.
So, this one isn’t in New York but rather in Bridgewater, New Jersey, and is included in the list, having garnered $121 million in investment. Bridgewater, NJ? Who would have thought?
Rounding out the list is another West Village zip code, with a healthy $79.9 million in funding. Fab’s recent mega round(s) will ensure that this zip code soars in the next ranking.
While past performance is not an indicator of future results, it may be something to think about as you assess the location of your next office space, perhaps in one of the fine co-working spaces the city has to offer. I would strongly suggest that you keep your focus on building a fundable business in any of these fine locales – as long as it’s below 57th Street!