At the Dash conference in San Francisco on August 3, 2023, Olivier Pomel, the co-founder and CEO of Datadog, delivered a speech that captivated the audience. As the CEO of one of the most successful tech companies, Pomel shared his insights and experiences with the attendees.
Datadog, a fledgling startup when Albert Wang joined as a product manager a decade ago, played a significant role in the rise of New York’s tech scene. At that time, New York was not known for its tech activity, with the San Francisco Bay Area being the dominant player in the industry. However, Wang witnessed a transformation as Datadog grew rapidly and went public in 2019, now boasting a market cap of over $28 billion.
After spending four years at Datadog, Wang decided to launch his own company called Bearworks in New York. According to Wang, the city has changed dramatically over the years, becoming more diverse and attracting more startup entrepreneurs. Previously, New York was known for its consultants and bankers, but now it has a thriving tech community.
Datadog was not the only New York-based tech company to go public in recent years. UiPath, MongoDB, and Etsy also had successful IPOs, contributing to the creation of an ecosystem that has given rise to new startups and turned early employees into angel investors for future entrepreneurs.
Despite a challenging year for the tech industry in 2022, with the Nasdaq experiencing its worst performance since the 2008 financial crisis, New Yorkers remain optimistic about their city. In fact, New York was ranked second, after California, in terms of venture capital investment in startups in 2022. The capital deployed in New York has increased significantly over the past decade, even amidst last year’s industry slump.
While California still leads in terms of investment, New York’s tech scene has been gaining momentum. The city has attracted big names like Google and Salesforce, providing a pool of talent for startups to tap into. Additionally, venture capital firms like Andreessen Horowitz, GGV Capital, Index, and Lightspeed Venture Partners have expanded their presence in New York, signaling growing investor interest in the city.
Olivier Pomel faced skepticism when he decided to build Datadog in New York instead of Boston, the traditional hub of enterprise technology. However, he was determined to prove that a successful tech company could be built in New York. Eventually, Index Ventures, a European firm, joined in the funding round for Datadog, further fueling the company’s growth.
To sustain its momentum, New York needs to continue producing successful startups. While the IPO market has shown signs of life recently, there are not many obvious candidates for tech IPOs in New York. However, with the support of investors and the presence of established tech companies, New York has the potential to continue its growth as a tech hub.
Successful founders, like Eliot Horowitz of MongoDB, have been reinvesting their wealth back into New York’s startup ecosystem. They have backed new startups and initiatives that contribute to the city’s tech scene. Moreover, the pool of talent in New York has expanded, making it easier for startups to find the right people with the necessary skills.
The maturing ecosystem in New York is evident in the support and collaboration among startups. Founders like Graham Neray, who once sought help from Olivier Pomel when starting his own company, now pay it forward by connecting new startups with investors and providing valuable guidance.
In conclusion, New York’s tech scene has come a long way, thanks to the success of companies like Datadog and the support of investors and established tech companies. The city has transformed into a thriving hub for startups, attracting diverse talent and fostering collaboration. With continued support and success, New York has the potential to rival the tech scenes of Silicon Valley and Boston.
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