A Tale Of Two Cities

Yesterday my partner Brad told me that he thinks something special is going on in two cities, San Franscisco and New York. That something special is a creative culture that is leading to an explosion of new web services.

This post from Om Malik bears that observation out. Here is the money quote:

San Francisco saw 36 Internet deals that brought in $131 million, while New York City saw 31 Internet deals garner $126 million. In comparison, Mountain View, San Mateo & Palo Alto saw 21 deals focused on the Internet and they brought in a total of $174 million.

If you want to talk about capital efficient web servics, then there are two ideal places to start them, San Francisco and NYC. How about the valley? Well, there you apparently need to spend more money. The average Internet deal in SF and NYC was $3-4mm. In the Valley, it was over $8mm.

I'm pleased to see NYC getting the attention it deserves. NYC hasn't been a technology hotbed since Bell Labs left town in the 50s, but now in the age of Internet startups, it sure is.