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A major contributing factor in New York’s startup renaissance has been the sub-prime mortgage crisis that surfaced in 2007 and still haunts New York’s financial sector. Hedge fund managers, investment bankers, and others in the financial sector have seen wages cut and jobs disappear, making the city friendlier to small tech companies trying to get off the ground.

“When you’re doing a tech media startup, the first year or two you’re not really making serious revenue,” said Greg Galant, the CEO of Sawhorse Media and podcaster behind VentureVoice. “The main cost for a startup now isn’t servers — it’s compensating employees and having to be competitive with the market, especially against the finance industry and the more established media industry.”

Finance is too busy licking its wounds to recruit engineering talent, and rents have decreased, or at least stopped increasing, since the crash — two factors that work in startups’ favor.

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Startups Rise From Wreckage of NYC Financial System-Wired

It’s about time that NYC became a startup hotbed.  I think it could definitely be the place where we see a really hot financial technology scene.