Blog of Intellectual Capital

NYC Needs More Iconic Companies, Fewer Early Exits, VC Says

By Yuliya Chernova

Mark Lennihan/Associated Press

New York.

Bill Gurley, partner at Benchmark Capital, leveled a number of serious charges at a ballroom full of New Yorkers this week–the city has yet to produce an iconic venture-backed company, he said. And, he added, people here are more likely to sell early rather than create a true home-run for a venture firm via an IPO.

Out of the 50 venture-backed companies that raised the most money via sales or IPOs over the years, none were located in New York City and only five were based in the New York region–that is in New Jersey or Connecticut, according to data from Dow Jones VentureSource.

“What New York needs is more iconic companies that last over a long time,” said Gurley, on stage at Disrupt NY 2013, a conference organized by TechCrunch. Gurley, who said that Benchmark has made two investments in New York recently, compared the city to Seattle, where the top four businesses, Microsoft, Amazon, Costco and Starbucks, were all backed by venture capital.