New York driving nationwide tech growth

Posted by Justin Hesser on November 17, 2014

The United States saw a 4 percent increase in the number of startups applying for funding in the third quarter over Q2, according to investment platform Gust. Interestingly, the gap between the East and West coasts is shrinking, and much of that is due to the growth of New York's tech sector: in the Empire State, the quarterly increase was a remarkable 13 percent.

The state's IT industry has been growing for years, but 2014 has seen the launch of a number of public initiatives that are boosting the sector even more. Governor Andrew Cuomo, who was recently re-elected to a new four-year term, launched the online platform Start-Up NY to provide major tax breaks and access to college resources, along with networking opportunities to new companies.

At the local level, New York City Mayor Bill de Blasio introduced a portal, Digital.NYC, with extensive databases of startups, investors, job listings, conferences and networking events. That followed the 43North initiative in Buffalo, which recently announced the 11 winners of a total of $5 million in funding.

New York has become a major player in the U.S. tech industry.

New York is now the second most active state in startup applications for funding, behind California, whose rate decreased by 6 percent in Q3. Rounding out the top five are Florida, Texas and Washington state. Software developing companies are at the forefront of the global startup growth, with a 52 percent quarterly increase worldwide.

Gust's data shows development in both traditional IT hotbeds and emerging markets: the top countries by startup activity are the United States, India, Canada, France and Brazil. It's an exciting time for startups everywhere, and the opportunities for expansion have never been greater.