From the stage of Cybertech TLV, one of the world’s largest convenings of the cybersecurity industry, NYCEDC President and CEO James Patchett made the case for New York City as a second home for international firms and announced a swell of new expansions from major industry players. This momentum comes on the heels of Mayor de Blasio’s commitment to grow New York City’s cybersecurity industry, which will help create over 10,000 high-quality jobs in the next ten years.
With the support of NYCEDC’s Partnerships team, Jerusalem Venture Partners (JVP), an Israel-based investment firm, which has invested in over 120 companies in Israel, the U.S. and Europe, has made the decision to expand to New York City.
As outlined in the New York Works plan, NYCEDC’s Partnerships team plays a critical role in attracting businesses and organizations to help grow the city’s economy. The team has been actively engaging with international firms, serving as a front door for businesses looking to expand to New York City and providing them with information on office space, talent and hiring, financing sources, and City resources.
As part of its strategy to grow the cybersecurity sector, NYCEDC sent a delegation to Tel Aviv to attract international companies to establish a presence and create jobs in New York City.
“We are aggressively pursuing cybersecurity leaders from around the world to come to New York City and create good jobs,” said NYCEDC President and CEO James Patchett. “We have all of the competitive advantages to become a leader in cybersecurity – key anchor industries, talent, and a strong tech sector. We’re investing to make New York City the best place to grow a business or access a high-paying job in the industry.”
Growing the industry is a win-win for New York City. Innovations in cybersecurity help our legacy companies compete, and the industry itself is a hotbed for high-paying and accessible jobs, with over 95% paying over $50,000. As New York City’s anchor industries – finance, real estate, healthcare, retail, and media – are the largest buyer-base of cybersecurity products, many international firms are seeing the city’s potential and expanding to New York. New expansions include:
- Jerusalem Venture Partners (JVP) — JVP has raised $1.1 billion across 8 funds, investing in 120 companies, and leading to 12 public offerings on Nasdaq. JVP created Cyber Labs, a government-backed early-stage cybersecurity incubator in Beer Sheva responsible for creating 2,500 new jobs. JVP recently announced a new $1 million competition, New York Play, focused on bridging innovation and entrepreneurship between New York City and Israel. Fostering a pipeline of expansions between Israel and New York City, the competition will connect participating companies based in New York City and Israel with significant exposure to global markets, access to prominent industry partners, and support in the development and scaling of their companies.
- Intezer – a malware analysis and detection startup that provides enterprises with unparalleled threat detection. Through a novel technological approach to cybersecurity, Intezer applies ‘DNA Mapping’ techniques by identifying the origins of every piece of code and detecting code reuse from known malware and trusted applications in order to accelerate incident response time and eliminate false positives.
- D-ID – a Y Combinator alumnus, D-ID developed an AI software which protects identities from face recognition technologies. D-ID’s technology produces photos and videos which are unrecognizable to face recognition algorithms, while keeping them similar to the human eye. D-ID enables companies, security agencies and governments to comply with privacy regulations (GDPR) and protect biometric databases.
These firms are joining a recent wave of established cybersecurity companies expanding to New York City over the past year. These companies include Bay Dynamics, a 100 employee firm from the Bay Area, Team 8, a leading Isreali think tank, and other Israeli-based firms such as Illusive Network, Indegy, Siemplify, BioCatch, and Thetaray, among others.
“Growing and strengthening New York City’s cybersecurity industry through Cyber NYC will only diversify our economy to meet the necessities of the 21st Century. We welcome these companies to New York,” said Council Member Paul A. Vallone.
“There is enormous growth potential for cybersecurity to become one of New York City’s flagship industries. These three companies have smartly caught the wave early, and will help round out the important Cyber NYC initiative to catalyze innovation and create jobs in NYC. Thanks to the EDC for maximizing this opportunity to cultivate new and emerging business in NYC,” said Council Member Peter Koo.
“JVP’s expansion to New York and the launch of New York Play are all about what’s possible,” said Erel Margalit, Founder and Chairman of JVP. “As New York becomes America’s gateway for international collaboration and innovation, JVP, at the center of the “Startup Nation,” will play a significant role boosting global partnerships to create solutions that better the world and drive international business opportunities.”
“Being an Israeli startup, we have a unique outlook when it comes to global expansion for companies,” said Itai Tevet, CEO and co-founder of Intezer. “Creating hubs around the world to be able to meet our customers where they are and meet the great minds of our next team.”
“D-ID knew we had to be in NYC because there is a strong demand for our technology in large financial institutions. As the center of the financial industry, NYC is the perfect place for us to grow our customer base,” said Gil Perry, CEO of D-ID.
The city’s current cybersecurity industry has a strong foundation with over 100 firms and 6,000 employees. In 2017 alone, the city received over $1 billion in cybersecurity-related venture capital funding. To build on this foundation, Mayor de Blasio launched Cyber NYC in June 2017, an initiative which will catalyze the growth of New York City’s cybersecurity industry. Cyber NYC is a key component of Mayor de Blasio’s New York Works plan to create 100,000 good jobs over the next ten years. The initiative focuses on three priorities:
- Establishing a Cyber Center to serve as the primary hub of New York City’s cyber community. Specifically, the center will house New York City’s first cybersecurity accelerator to connect startups with access to potential customers, investors, industry mentors, space, training, and other resources
- Strengthening Talent Partnerships by developing a diverse, well-trained cybersecurity workforce, and connecting New Yorkers with jobs. The key component of these partnerships will be an Applied Learning Initiative, which will operate across the city’s universities and educational service providers to create learning opportunities in cybersecurity. The City will also establish a Cyber Boot Camp to train and connect a diverse group of New Yorkers with jobs in cybersecurity.
- Creating Academic Innovation Exchanges to support the launch, growth, and commercialization of new cybersecurity research and development based in academia. The exchanges will include two programs: Cyber IP to pair creators of commercialization-ready IP with entrepreneurs and Cyber Innovation Bridge to connect academia-led startups with funding and entrepreneurship training.
Read more about the Cyber NYC initiative here.