Fortune Is Bubbly on New York’s Tech Scene

bubbles 0 Fortune Is Bubbly on New Yorks Tech SceneFortune is bullish on New York’s lightweight tech scene:

Why New York, and why now? For many of today’s Internet companies, the competitive advantage lies in the innovative nature of their products, not necessarily their technological prowess. Thanks to Internet-based services such as EC2 from Amazon (AMZN), startups can essentially rent the supercomputing power they need and can launch — and thrive — with fewer than two dozen employees.

The article cites super-investor Ron Conway, who has invested in New York-based companies including BuzzFeed, StackOverflow and Buddy Media, saying his portfolio has gone from about 5 percent New York companies two years ago to about 20 percent “and climbing.”

New York has produced a wave of design-heavy but technology-light startups in recent years and some (Foursquare, Tumblr, Kickstarter) have gotten extremely popular with users and investors. The rise of incubators like BetaWorks and TechStars could foster more rockstar companies. But the sudden easy flow of money has got some prognosticators worried about a tech bubble.

According to Steve Greenwood, who was head of business development at Drop.io until the New York startup was acquired by Facebook, “This is the epicenter of the next Internet revolution!”

Nobody tell him New York wasn’t built for earthquakes.

ajeffries [at] observer.com | @adrjeffries