Mama I'm Coming Home

Return of the Diaspora: After a Taste of the Valley, New York Techies are Coming Home

All work and no play makes Jack a dull startup.
go west Return of the Diaspora: After a Taste of the Valley, New York Techies are Coming Home


Underlit bars and blaring techno set the scene at the Park Avenue Armory earlier this month, when a who’s who of New York’s tech scene gathered in the cavernous block-length building for the sort of startup event that bore little resemblance to the usual beer, pizza and Powerpoint office gathering. No, this was a fashion show; a nerdy fashion show, to be sure, but one with glamour and theatrics. Raise Cache, a fundraiser for the apprentice developer program HackNY, tapped local tech personalities to walk the runway outfitted in glasses from local e-prescriber Warby Parker, slacks from e-tailor Bonobos and accessories from e-jeweler Bauble Bar. Larger-than-life cartoon avatars lorded over the crowd from the DJ booth as amateur DJs spun tracks using Union Square-based streaming music startup Founders and VCs milled about in gowns, coattails, pinstriped vests, glittery tights and cowboy hats. A recording of Mayor Mike Bloomberg, who has been pumping his pom-poms for the New York tech scene of late, boomed out at the close of the show: “Now more than ever, [New York] is the place for to be for tech soirees!”

That seems to be the consensus among a contingent of New York founders who made the pilgramge to the tech mecca of Silicon Valley but have returned to be part of an up-and-coming scene, as well as for the nightlife, the restaurants, and the higher baseline average peer attractiveness. “There’s a lot more good-looking people in New York,” one founder told Betabeat. “Don’t quote me about that, but if it’s something you want to work that into the story, there’s definitely something there.”

In the past, incubator programs in Silicon Valley contributed to a techie brain drain from East to West. Paul Graham, the architect of the prestigious startup accelerator Y Combinator, insists Silicon Valley is the best place to start a company, and often counsels his startup acolytes to set up shop nearby. The vast majority of the Y Combinator alumni network is in Palo Alto, Menlo Park, Mountain View and San Francisco. Tales of New York-based founders like Matt Mireles, a Columbia graduate and uber-hustler founder of a video transcription startup, shipped out to the Valley when they found themselves struggling in New York are common. “But if you’re a schmoe like me and you’ve got a big, world-changing dream, NYC is not the best place for you,” Mr. Mireles wrote in a heavy-hearted blog post about the move in February 2010. “The odds are already stacked against you. Being outside the Valley just stacks them higher.”

Whatever the reason, a passel of companies have recently boomeranged back to the city after a season on the far shore. The longtime tech mantra of ‘go West, young founder” is being revised for the simple reason that New York’s tech scene is up-and-coming, more social and more fun. Recent Y Combinator grads Codecademy, The Fridge, MessageParty, Hirehive and Tutorspree all moved back the New York within the past 18 months. Sam Rosen, plucked from Flatiron’s General Assembly for the Mountain View accelerator 500 Startups by superangel Dave McClure, returned after the program ended.  “My friends in New York City—one would be in marketing, my good friend was a producer at MTV, other friends are lawyers. Whereas in the Valley you go to the party and everyone is in tech,” he told Betabeat in January. “It’s not like I’m tired of talking about my company, but it’s all we talk about.” Josh Weinstein, founder of the Facebook competitor CollegeOnly who later pivoted to interactive web television with a startup called YouAre.TV, ventured out to the Valley to work with a cofounder and be closer to investor Peter Thiel. In September, he returned—mostly because the cofounder bailed on him, but partly because he felt “isolated,” he said.

Amanda Peyton, MIT business school graduate and proud owner of a 212 cell phone number, moved out to Menlo Park in the summer of 2010 to participate in Y Combinator with her cofounders of the mobile blogging platform MessageParty. “It reminded me of Westchester, where I grew up,” she told Betabeat. “We had a lot of space where we lived, and the grocery store was really big and nice and things like that.” At the end of the summer, she and her roommates found out they had been living in the three-bedroom house that Lisa Brennan Jobs, Steve Jobs’s daughter, grew up in. The house was also next to Sand Hill Road, where all the big VC firms are, but there were only two places to eat within walking distance: Safeway, and a well-loved bar called the Dutch Goose.

At the end of the program, Ms. Peyton started talking to friends and colleagues about where to go next. “I had two arguments for going back to New York,” she said. “One was more of a macro trends argument about how there’s so many industries in New York that are going through truly fundamental shifts… but then I was talking to one guy, and he was like, why don’t you just admit that the reason you want to move back to New York is because you want to live in New York? And I was like: you’re totally right. I just want to.”

Ms. Peyton and her team are now ensconced in the former Williamsburg coworking space The Makery (currently transforming into the office of conversation-logger Bnter). “There’s just more stuff to do in New York,” she said. “There’s more places to eat, more people to hang out with. I just learned how to work smarter. Yeah I have cut down the hours a little bit, but I don’t feel like I’m any less productive. I just don’t feel like I’m only working.”

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  1. “The Valley” is a much more broad locale than New York City… Menlo Park, Mountain View, Palo Alto, etc. offer an extremely different lifestyle than urban San Francisco. 

  2. Matt Mireles says:

    NYC offers a better lifestyle than the valley, for sure. Suburbia is not fun. SF is much much better because it’s an actual city, but still doesn’t match NYC in terms of fun. If you want to optimize for fun, you do not live in Mountain View or Palo Alto. Period.

    If you want to optimize for surrounding yourself with awesome, experience people at the center of the tech industry––both employees and mentors––live in the SF Bay. 
    Two mistakes I’ve seen people make are:1) failing to cultivate mentors. 2) not going to the mountains.If you don’t leverage the wealth of experience and professional resources that’s here in the valley, you’re gonna wonder why the hell you’re here. If you don’t go to the mountains and experience the insanely awesome California outdoors (hello, Tahoe!), you’re gonna be stuck with a second rate city, or worse yet, Westechester-esque suburbia. 

  3. ststrat says:

    I call bullshit. If you are in walking distance to the Dutch Goose you are within walking distance to about 10 other places and about a 5minute drive max to downtown Palo Alto.

    1. “walking distance” and “Dutch Goose” in the same sentence…  That’s the problem, it’s not walking distance to anything.  I remember from my Stanford days that it’s not even “stumbling distance” ;-)

    2. “walking distance” and “Dutch Goose” in the same sentence…  That’s the problem, it’s not walking distance to anything.  I remember from my Stanford days that it’s not even “stumbling distance” ;-)

  4. Matt Straz says:

    The tide has turned. New York is now the coolest and best place in the world to start a software company, period.

  5. Matt Straz says:

    The tide has turned. New York is now the coolest and best place in the world to start a software company, period.

  6. Kate says:

    Is it me, or does Adrianne mention Fitocracy once a week? I don’t think of them as representing the NY tech scene at all.

    1. Anonymous says:

      Why not?

  7. Guest says:

    Silicon Valley: vc likes you if he thinks startup staff can answer google/facebook/zynga interview questions

    NYC: vc likes you if he thinks he can flog your concept off in news corp