Why startups in the field of consumer technology falls in love with New York City
In March, Teddy Suleiman said goodbye to Silicon Valley and moved all over the country to New York City.
The 23 -year -old founder spent the founder of the 23 -year -old most of his life in the Gulf region, but he was keen to move to what he saw as a loud center for consumer technology.
“We have realized over the years that New York has become hotter than the Gulf region,” Solomon told Business Insider.
He took the company with him.
Fizz moved its employees 20 plus from Palu Alto to the loud Soho neighborhood in Manhattan. Backing or lower, in one of the 22,000 SOHO streets, is the 22,000 square feet of the POSH juvenile platform. Steps Away is La Cabra, a street cafe from the New York office in Openai, which has become a hot place for technology workers.
POSH, the events platform, is located in the heart of the Soho neighborhood in Manhattan.
As a matter of luxurious courtesy
Meanwhile, the bridge in Brooklyn, startups such as the 800 million dollar digital commodity market in 2024-set up the Gen Z’s Go-To Party, Partiful, a store.
The consumer technology scene in New York – startups that build technology for ordinary people instead of companies – enjoy a moment. But it is not the first time. The city has long hosted its hosting of consumer nerves such as Glossier, Scentbird and Aptdeco, brands that helped determine the 2010 direct VC mutation before the model begins to show cracks.
With the emergence of a group of prominent new consumer starters, New York suffers from a “consumer renaissance”, as Derek Chu, the main investor in Versar Capital (whose luxury support) has developed.
“There is a community of founders who personally build here in New York,” he said. “People want to be here, together, as it is one of the best places in the world – if not the best – to do this.”
The increase has sparked one of the favorite TECH battles: New York against San Francisco. This month, the discourse beats through the air at the Technology Week in New York.
“People want to be in New York now,” said Julie Samuels, CEO of Tech: NYC, a non -profit organization working with the city’s technology leaders. “One of the most important things I love working in technology in New York is that people are the residents of New York first. To build in the technology industry here, you must really love New York.”
However, the San Francisco Bay area still holds the crown in financing the project. According to a report issued by Pitchbook and National Venture Capital Association, the Gulf region continued to outperform New York in the first quarter of 2025, with a total of 658 VC deals 58.7 billion dollars, compared to 441 transactions with a total of $ 7.1 billion.
The same report found that New York is the most friendly city for female institutions, with 372 transactions in the first quarter.
The return of consumer technology
Remember Warri Parker, Glossier, and Casper? These brands were for consumers, a new wave of startups in 2010. They were an authentic, numerical design, ready to explode with dusty occupations – and they were also born in New York and responded. Thanks to the success of these and other companies, the city has become a magnet for direct startups for the consumer in fashion, beauty, lifestyle and other groups.
The momentum did not last, however. Customer acquisition costs rose, supply chains become complex, and many of these companies struggle to convert tinnitus into profits. The Korona virus pandemic has increased the problems facing many brands because it has exposed the fragility of global logistics services and consumer spending.
At the same time, investors started chasing other shiny things. The wonderful institution software industry promised fixed returns. Crypto and Web3 captured the investor’s imagination. In comparison, a lot of VCS declined from consumer technology. It was a difficult sale: capital dense, with thin margins and operational headache.
Initially, the rise of artificial intelligence seemed to be another death to invest the consumer. According to CRUNCHBASE data, investments in social companies that focus on consumer declined to $ 900 million in only 128 transactions in 2024, a decrease from a summit of $ 3.1 billion through 487 transactions in 2021.
Only 6 % of the betting of the major VC companies went to startups for consumers in 2024, according to the analysis of the Pitchbook data by Silicon Valley Bank.
But what was previously seen as a setback for startups for consumers is now the biggest opportunity, says investors and analysts. Amnesty International, which initially attracted the investor’s attention away from space, is now working to operate a new wave of innovation. A new category of emerging companies is cunning technology to rethink how consumer companies are building, from developing products to operations and customer experience. They put themselves in this next chapter.
If the consumer technology is previously defined through the direct plays of the consumer and mobile applications, this next generation will be formed by artificial intelligence.
“Artificial intelligence is still the subject of the consumer’s supreme investment and is the biggest opportunity since the Internet,” wrote the Bank of Justin Post at Bank of America in a recent analytical memo. “Business models on artificial intelligence advance faster than historical standards, which are high quality because consumers are more willing to pay for services.”
New York, a new consumer
If they are not at the La Cabra coffee meeting in Soho or Devoción in Flatiron, you can discover some of the founders of consumer technology in New York on social hot sites such as Space Verci, or exercise at Soho Exhinox, or sweat it in other sauna that approaches many VC violations.
Suleiman said: “If we leave the office at 10 pm, you still have hours to be able to do everything you want, from a comic offer to a pub to anything else that happens here.”
FIZZ moved its headquarters from Palo Alto to New York City in March.
fizz
Run clubs, poker nights and happy hours on the surface on any night of the week that interferes with the arts, music and social scenes that give the city to the city.
“He is a human,” said Alexandra Debo, CEO of Swsh, said. “New York is culture. New York is TV. New York is” gossip girl. “
Consumer technology founders can also reach neighboring industries that provide a symbiotic relationship, such as marketing and advertising companies, content creators, and many of the largest banks.
Like any other thing, something that starts from puberty in New York, the city provides its own challenges that build grasum for those who run startups.
The CEO of the Posh Avante Price said that keeping pace with the New York pace was like keeping up with the startup.
The dating artificial intelligence application was launched in New York City in 2024.
Sich
Brokel Catalyst, founder of Stellation Capital, described a partner at General Catalyst, the current generation of consumer founders in New York-and many Gen Z-as “building new ways to communicate with each other” through new social networks specialized in an epidemic world. (Boyce is an investor in Swsh.)
For example, Sitch, an application dating back to the experience of reconciling artificial intelligence, has ads all over the city. New York is also a home to Earl (“in real life”) like 222 (which moved to New York from Los Angeles in 2024) and ride.
“The founders of the truly successful New York in Social consumers are successful because they have this ability to benefit from the world,” said Anant Vasodevan, one of the founders of VERCI.
Michelle Yin, Houswarming, said she felt that everyone was doing social work for consumers in New York, knowing each other.
Learn about some new startups for consumers in New York City
There will always be San Francisco
Now, we have reached TRHORNIEST Questions: Will you replace New York store San Francisco and Silicon Valley as a technical center? Maybe not. The West Coast continues to serve as a deep engineering talent, technology and Amnesty International.
“If you are doing B2B Saas, SF is the right place for you. If you are doing deep technology, then SF is the right place,” said Michael Giardino, CEO of AI App App Startup Oleve, which is based in New York.
SF also produced many consumer success stories. Doordash, Airbnb, Instacart and Uber were built in the Gulf region, as well as the direct Darings of Everland, Allbirds and Juggernaut Hims consumer.
But even some of the most evident investment capital companies, such as Andrink Horwitz, such as Menlo Park, sings New York’s praise.
“New York City has become the best technical center if not on the West Coast,” Andrew Chen has recently written on LinkedIn a week ago.
Katia Amiri, another partner of A16z, chanted, as a technology week file.
“Since the epidemic, New York City has become the best technology center outside the Gulf region, and this momentum was clear at NY Tech Week”, Amei books In x in June.
“The city has now become a world leader in major industries such as Saas, digital health, e -commerce, technology, and PROPTECH, a fast -design center for Amnesty International,” she said.
However, at the end of the day, successful founders will continue their bilateral roads, starting between New York and SF.
“This was always the case,” Boyce said, especially while the adventure scene in New York tends to seeds. “When these teams need $ 30 million and $ 50 million, it is very regular to make sure to see Sequoia, Lightspeed and NEA in SF.”
Boyce added on the other side, as consumer companies that are based in San Francisco mature, you will find itself on the eastern coast to meet the “customer community”.
“It is useful frankly.” “And something I do.”