How NYC became ranked amongst the leading tech cities
Although New York City (NYC) has always had a tech presence, it was only in recent years that its activity boomed, with several companies opting to expand their operations and set up shop in The Big Apple. However, NYC is said to have been one of the pioneering cities when it comes to technological developments since as far back as 1957, so it is no wonder that job seekers and tech companies subsequently flocked to the city. Since then, a lot of dynamics have changed though, but the city remains amongst the revered tech cities and many are looking to NYC for funding and support opportunities.
What makes NYC so attractive to companies looking to scale up?
Perhaps one of the leading reasons for New York City’s attractiveness to Canadian tech companies is the Canadian Technology Accelerator (CTA) program that is offered. The CTA, a federal program run by the Canadian Trade Commissioner’s Office, provides support for companies in various digital technology sectors, such as e-commerce, fintech, data analytics, and Software-as-a-Service (SaaS), amongst others. The decision on which companies to support is guided by whether or not the company has strong growth potential, a clear strategy for attracting its target market, a distinct competitive advantage, as well as the unique selling point (USP) of the product, particularly as it relates to its intellectual property.
In a competitive environment characterized by deadlines, the bottom line, innovation and overall value, some tech startups that pursued this route and venture funding in the so-called concrete jungle were left wanting. Those that have been successful, though, have contributed to the growth of Canada’s tech industry, which is said to be experiencing unprecedented growth and giving the leading tech cities a run for their money.
The impact on the job market
Given the opportunities that exist between New York City and Canada, it also opens the door for cross-border hiring. The CTA provides access to key resources for the companies, including connections to client acquisition, venture capital and strategic partnerships. Therefore, there is also room for the exchange of personnel for training and growth purposes, as well as the need to source talent based on location, expertise and experience. In such cases, it is inevitable that some cross-border elements and activities will require trading in Canadian and American dollars. Essentially, this means that the exchange and interest rates between the two is of utmost importance; as is common knowledge, it undoubtedly has an impact on the company’s bottom line.
It has been reported that Canada provides access to quality labour for far less. According to Paul Morassutti, the Executive Managing Director at CBRE Group Canada, “High-quality and well-educated tech talent, cost-efficiencies, and welcoming immigration policies are competitive advantages for the Canadian tech markets.” Therefore, given the substantial financial savings, this alternative is seemingly more attractive.
Some of the companies that have benefitted from the CTA are:
- Twentify: provides market research and field audit tools through mobile insights, enabling clients to “reach thousands of consumers and shoppers directly in real-time.”
- Clausehound: provides a “business law library and negotiation playbooks that provide students with a deep understanding of legal clauses through case-based training materials, as well as user tracking tools and engagement metrics.”
- Value Connect: a company that “merges human experience and AI to efficiently deliver accurate, comprehensive and compliant home appraisal reports.”