There have been a few stories about the recent revival of Silicon Alley, the NYC Internet corridor…I was, in its waning days during the first bubble, the managing editor of Silicon Alley Reporter, so I have some nostalgia for it, if nothing else.
This story from NYC City Journal explores in-depth the history, the boom-bust-and-revival-again cycle of Silicon Alley and NYC digital media scene.
City Journal estimates that the digital media industry shrank in New York by 30 to 50 percent during the post-9/11 recession, leaving a still-substantial 80,000 to 100,000 digital jobs, generating up to $8 billion in annual salaries.
The story metions some of the first round entrepreneurs trying their hand again this time: Kevin Ryan, Jason Calacanis (my ex-boss), Nick Denton (he wasn’t in NYC in the first wave). And thne some of the new companies such as Fotolog, Right Media, Massive Inc, and others.
But as the story rightly points out, with capital tighter and entrepreneurs paying close attention to spending, Silicon Alley’s revival has yet to produce the kind of ripples through New York’s broader economy that occurred during the late 1990s, when the tech boom drove gains in everything from commercial real estate to corporate party planning.