This is a guest post by Michael Mandel, a commercial real estate advisor at Grubb & Ellis in New York City. He specializes in tech startups and data center transactions. His recent clients include eBay, Facebook, The Limited Stores, adap.tv, Verizon, Webair and Guardian Life.
So your startup has gotten too large for General Assembly, Dogpatch Labs, WeWork Labs, Betaworks, TechStars, or wherever you choose to incubate the next Facebook. You love the high tin ceilings, the wood floors, the exposed columns, and the proximity to the Ace Hotel, but it’s time to take off the training wheels and ride out on your own. This article is your definitive 900-words-or-less guide to making it in the big city.
“Tumblr is one of our New York stars,” said Dawn Barber, co-founder of the New York Tech Meetup. But the site is growing fast and has of late experienced downtime and performance issues similar to the growing pains Twitter had as it started getting popular. A recent $30 million raise is helping, though.
Welcome to Davidville! Turbulence at Tumblr Tests Tempers As Start-Up Scales Success
It was the last Thursday of October, and David Karp, the brown-haired, pale blue-eyed 24-year old founder of Tumblr, was chatting with his long-time mentor Fred Seibert, 59, of MTV and other fame, following a parfait and mini-bagel panel on social media at the Bryant Park Grill.
Mr. Karp was merry. He had gotten some laughs during the panel. He was also in the middle of raising $30 million in funding, and it was going exceedingly well. A top-tier West Coast investor once dismissed Tumblr off-hand, the legend goes, encapsulating the Valley’s attitude toward the New York-based start-up with an “Oh, Tumblr? That’s just for Brooklyn hipsters.”
Now that the site’s traffic resembled a very tall hockey stick, it was a different story.