Daniel Doctoroff (chairman and CEO of Sidewalk Labs and former deputy mayor of New York City) and Eric Schmidt (executive chairman of Alphabet and former CEO of Google) recently contributed a piece to the Globe and Mail about “why Toronto is the ideal place to build a neighborhood of the future.”
It’s about the partnership they working on with Waterfront Toronto. I wrote about that announcement, here.
Here is an excerpt from the Globe article:
“The eastern waterfront will be a place where residents, companies, startups and local organizations can advance new ideas for improving city life. It’s where a self-driving test shuttle will take its first steps toward becoming a next-generation transit system that’s cheaper, safer and more convenient than private car-ownership. It’s where new insights into advanced construction methods will start to reveal a path toward more affordable housing development. It’s where explorations into renewable energy and sustainable building designs will show promise toward becoming a climate-positive blueprint for cities around the world.”
These are some of the first details that I have heard about their vision for Toronto’s eastern waterfront.
Some of you are probably worried – after reading the above excerpt – that by focusing on self-driving vehicles, we are setting ourselves up to repeat our previous mistakes. But if self-driving vehicles are destined to become a reality (and it certainly feels that way), it is critical that we understand their impact and how they might best dovetail with the public transit systems we already have in place.
I am thrilled that all of this will be happening right here on our doorstep.
Venture capitalist Matt Turck has a post up on his blog that is packed full of information about the New York City tech ecosystem. (He has also written similar posts about Berlin and Paris.)
His overall thesis is that New York – as a startup/tech hub – is only now starting to catch up to the hype of 4 or 5 years ago. He now refers to NYC as the de facto Number 2 after the Bay Area.
If you’re interested in all of this, you can go read his full post. But I would like to pull out 2 points. The first is about the “rinse and repeat” cycle that happens over time that allows cities to become substantive startup hubs:
As any student of emerging tech ecosystems knows, the key dynamic to success is the “rinse and repeat” cycle. You need several waves of successful tech companies to go through the whole cycle of founding, financing, scaling and significant exit. Post-exit, the hope is that successful founders, employees and investors then contribute back both money and expertise to the next generation of tech startups, a few of which eventually become highly successful themselves and then provide money and expertise to the following generation.
The trouble is, each successive cycle takes years, because the average successful startup takes 5 to 10 years to get to a large exit.
One key reason the Silicon Valley has become such a powerful network is that this “rinse and repeat” cycle has been happening there for decades, at least since the 1940s and 1950s (Hewlett Packard), with a real acceleration in the 1970s and 1980s (Apple IPO, founding of Kleiner Perkins, etc).
I’ve written about this idea before, but didn’t refer to it as “rinse and repeat.” I’m thinking about adopting that terminology going forward.
The second is a list of New York-based startups. Matt uses it as an example of how entrepreneurial activity in New York is operating across a broad cross-section of different industries. That’s an important characteristic to identify.
However, I also thought you might find it valuable to see what startups are out there, particularly if you happen to work in one of the below verticals/horizontals. I certainly went right to the real estate line.
Fintech: Betterment, IEX, Fundera, Bond, Orchard, Bread
Health: Oscar, Flatiron Health, ZocDoc, Hometeam, Recombine, Celmatix, BioDigital, ZipDrug
Education: General Assembly, Schoology, Knewton, Skillshare, Flatiron School, Codecademy
Real estate: WeWork, HighTower, VTS, Compass, Common, Reonomy
Enterprise SaaS: InVision, NewsCred, Sprinklr, Namely, JustWorks, Greenhouse, Percolate, Mark43, Movable Ink
Commerce infrastructure: Bluecore, Custora, Welcome Commerce
Marketplaces: Kickstarter, Vroom, 1stdibs
On Demand: Handy, Via, Managed by Q, Hello Alfred
Food: Blue Apron, Plated, Maple
IoT/Hardware: littleBits, Canary, Peloton, Shapeways, SOLS, Estimote, Dash, GoTenna, Raden, Ringly, Augury, Drone Racing League
AR/VR/3D: Sketchfab, Floored
I was happy to see my friends at Floored in the above list. They are under AR/VR/3D, but they service the real estate industry.
Following the lead of San Francisco, a new non-profit, member-supported organization for New York tech companies has just launched. It’s called Tech:NYC. Here are their goals, taken from this blog post:
Tech:NYC’s primary goals are to support the growth of the technology sector in New York City, to increase civic engagement by leaders of the New York tech community, and advocate for policies that will attract tech talent, jobs, and opportunity to NYC.
Tech:NYC will advocate for policies that: 1) underscore a regulatory environment that supports the growth of technology companies and technology talent in NYC; 2) promote inclusivity; and 3) ensure access for all New Yorkers to connectivity, technology tools, and training.
What makes something like this important is that many public policy issues are now rooted in the tech sector. Think about all the debate regarding ride-sharing, home-sharing, drone regulation, contract employees, and so on.
But what is also clear is that many cities are struggling to deal with these issues. As I’ve argued before, just saying no to innovation that doesn’t fit neatly into our currently regulatory boxes is often shortsighted.
So how do we put in place policies that deliver the right results and that are balanced? How do we grow the tech base while at the same time managing the disruptive fallout? That’s what this group hopes to do.
And it strikes me that every big city could likely benefit from an organization like this.