These are the high level results of a survey sent to entrepreneurs living in NYC, Boston, and Palo Alto.
Public Funding
Ø Just 13% of respondents sought public financing; 42% sought private financing
Ø The median public raise was $2 Million, while the median private raise was $275,000.
Ø 69% of companies that applied for public funding received some
Ø Only 30% of companies raised as much private financing as they had hoped
Office Space
Ø 42% of respondents with commercial office space in New York did not pay rent last month versus 24% and 22% of respondents from Boston and Palo Alto respectively
Ø When factoring in this free rent, the median rent per employee, per month was $200 in New York, $350 in Palo Alto, $500 in Boston
Ø When calculating the cost of office space only for those companies that paid for their office space, the median rent per employee, per month was $733 in New York, $475 in Palo Alto and $500 in Boston.
Geography
Ø Just 18% of respondents moved to a location to launch their business (15%) or to move their business to a new location (3%).
Ø Exactly 70% of respondents were either born in the city where their business is based (17%), came for education (23%), or came for a prior job (30%).
Ø 37% of respondents from Palo Alto moved there to launch their business (32%) or to move their business to a new location (5%).
Key Recommendations
Ø Student Loan Forgiveness for Entrepreneurs
Ø Create “Immigrant Friendly” Cities
Ø Recruit and Support Firms with “Entrepreneurial Prominence”
Ø Raise Awareness of Public Funding Availability through Social Media
Ø Use City-Funded Offices to Help Entrepreneurs Identify and Apply for Public Funding
Ø Tax Incentives for Established Companies that House New Ventures
