Move over Silicon Valley, New York City's software development industry isn't just thriving—it's booming with a workforce of 285,000 developers, contributing a staggering $45.2 billion to the city's economy in 2023.
Key Takeaways
- In 2023, New York City employed approximately 285,000 software developers, representing a 12% year-over-year growth from 254,000 in 2022
- As of Q4 2023, the software development sector in NYC had an unemployment rate of 1.8% for tech professionals, significantly lower than the citywide average of 4.2%
- Women accounted for 28% of the software engineering workforce in New York State's tech industry in 2023, up from 25% in 2020
- The New York software development industry contributed $45.2 billion to the city's GDP in 2023, a 14% increase from $39.7 billion in 2022
- Software firms in NYC generated $28.6 billion in revenue from SaaS products in 2023
- In 2023, the tech sector including software dev paid $12.4 billion in wages to NYC residents
- NYC had 4,200 software development companies in 2023, up 11% from 3,780 in 2022
- Brooklyn hosted 1,120 software startups in 2023, 28% of NYC total
- Manhattan software firms numbered 2,150 in 2023, including 45 unicorns
- The average base salary for software engineers in New York City was $148,000 in 2023
- Senior software developers in NYC earned an average total compensation of $245,000 including bonuses in 2023
- Entry-level software engineer salaries in NYC averaged $112,500 base in 2023
- Venture capital funding into NYC software startups totaled $12.8 billion in 2023, up 8% from 2022
- Seed-stage software deals in NYC numbered 450, averaging $2.1M each in 2023
- Series A funding for NYC software firms reached $4.5 billion across 180 deals in 2023
New York's software industry is booming with strong growth in jobs, revenue, and venture funding.
Companies and Startups
- NYC had 4,200 software development companies in 2023, up 11% from 3,780 in 2022
- Brooklyn hosted 1,120 software startups in 2023, 28% of NYC total
- Manhattan software firms numbered 2,150 in 2023, including 45 unicorns
- In 2023, 620 new software startups were founded in NYC, highest since 2021
- Fintech software companies in NYC totaled 850 in 2023
- 312 AI/ML software startups operated in NYC in 2023
- Queens had 280 software dev firms in 2023, focusing on cybersecurity
- 18 software companies in NYC achieved unicorn status in 2023, valuing over $1B each
- Enterprise software firms in NYC numbered 950 in 2023
- 145 healthtech software startups launched in NYC since 2020, active in 2023
- NYC's software startup failure rate was 22% in 2023, below national 25%
- 420 SaaS companies headquartered in NYC in 2023
- Bronx software dev companies grew to 95 in 2023, up 35% YoY
- 76 NYC software firms went public via IPO or SPAC in 2023
- Edtech software startups in NYC reached 210 in 2023
- 1,050 mobile app dev companies operated in NYC in 2023
- Proptech software firms in NYC totaled 180 in 2023
- 95 cybersecurity software startups in NYC in 2023
- NYC software companies with 100+ employees numbered 560 in 2023
- 340 early-stage software startups raised seed funding in NYC in 2023
- Adtech software companies in NYC were 120 in 2023
- Cleantech software startups grew to 75 in NYC in 2023
- 210 logistics software firms in NYC in 2023
- Gaming software companies in NYC numbered 110 in 2023
- 450 bootstrapped software companies thrived in NYC without VC in 2023
- Enterprise SaaS unicorns in NYC included 12 firms valued over $3B in 2023
- NYC software dev co-working spaces hosted 1,800 firms in 2023
- Women-led software startups in NYC reached 280 in 2023, 22% of total
- B2B software companies dominated with 2,100 firms in NYC in 2023
Companies and Startups Interpretation
While Manhattan’s 45 unicorns graze in a well-funded valley, Brooklyn’s 1,120 scrappy startups and a remarkably low failure rate prove that in New York’s software jungle, evolution favors not just the big, but the clever and resilient.
Employment and Workforce
- In 2023, New York City employed approximately 285,000 software developers, representing a 12% year-over-year growth from 254,000 in 2022
- As of Q4 2023, the software development sector in NYC had an unemployment rate of 1.8% for tech professionals, significantly lower than the citywide average of 4.2%
- Women accounted for 28% of the software engineering workforce in New York State's tech industry in 2023, up from 25% in 2020
- Over 45,000 new software development jobs were added in the NYC metro area between 2021 and 2023, driven by fintech and AI sectors
- In 2023, 62% of NYC software developers held at least a bachelor's degree in computer science or related fields
- The average age of software developers in New York City was 34.2 years in 2023, with 55% under 35
- Remote work adoption among NYC software devs stood at 42% full-time remote in 2023, down from 68% in 2021
- 18% of NYC software development jobs in 2023 were filled by immigrants, primarily from India and China
- Entry-level software engineer positions in NYC grew by 22% from 2022 to 2023, totaling 12,500 openings
- In 2023, 35% of NYC software devs specialized in full-stack development, the most common role
- NYC's software industry workforce diversity showed 15% Black or African American representation in 2023, up 3% from 2020
- Mid-level software developers (5-10 years experience) comprised 48% of NYC's tech workforce in Q3 2023
- In 2023, 25,000 software devs in NYC worked in startups, representing 9% of total employment
- The software development occupation in NYC had 7,200 job postings per month on average in 2023
- 52% of NYC software engineers reported upskilling in AI/ML in 2023 via online courses
- Veteran employment in NYC software dev reached 4.2% of the workforce in 2023
- Freelance software developers in NYC numbered 38,000 in 2023, up 18% from 2021
- 29% of NYC software devs were self-taught or bootcamp graduates in 2023
- Software dev jobs in Brooklyn accounted for 22% of NYC total in 2023, with 62,700 positions
- In 2023, 41% of NYC software workforce identified as Hispanic or Latino
- Senior software engineers made up 24% of NYC's dev workforce in 2023, totaling 68,400 roles
- NYC software dev turnover rate was 13.5% in 2023, below national average of 15%
- 67% of NYC software jobs required cloud computing skills in 2023 postings
- Part-time software dev roles in NYC increased 15% to 9,800 in 2023
- 2023 saw 14,200 software dev internships in NYC, 20% more than 2022
- Asian Americans represented 42% of NYC software developers in 2023
- Contract software dev positions grew 28% to 22,000 in NYC in 2023
- In 2023, 56% of NYC software devs had 3+ years experience
- NYC software industry added 5,200 dev jobs in Manhattan alone in 2023
Employment and Workforce Interpretation
New York's software scene is booming with such voracious hunger for talent that it's gladly hiring almost anyone who can code—growing at a frantic pace, getting (slowly) more diverse, studying AI on their lunch breaks, and somehow still keeping unemployment so low you'd think developers were being physically guarded from poaching.
Investments and Funding
- Venture capital funding into NYC software startups totaled $12.8 billion in 2023, up 8% from 2022
- Seed-stage software deals in NYC numbered 450, averaging $2.1M each in 2023
- Series A funding for NYC software firms reached $4.5 billion across 180 deals in 2023
- AI software startups in NYC raised $3.2 billion in VC in 2023
- Fintech software investments in NYC hit $2.9 billion in 2023, 23% of total VC
- Corporate VC into NYC software reached $1.8 billion in 2023
- Late-stage software funding in NYC totaled $4.1 billion for 45 deals in 2023
- Women-led software startups in NYC secured $850 million VC in 2023
- Brooklyn software startups raised $1.2 billion in 2023
- Cybersecurity software firms in NYC attracted $1.1 billion funding 2023
- Healthtech software VC in NYC was $900 million across 65 deals in 2023
- Edtech software startups raised $650 million in NYC 2023
- Proptech software investments totaled $720 million in NYC 2023
- Angel investments in NYC software hit $450 million for 320 deals in 2023
- SaaS software late-stage deals averaged $95M each in NYC 2023
- Government grants to NYC software startups reached $210 million in 2023
- M&A exits for NYC software firms valued $9.3 billion in 2023
- Cleantech software funding in NYC was $380 million in 2023
- Logistics software startups raised $550 million VC in NYC 2023
- Adtech software investments totaled $420 million in NYC 2023
- Gaming software VC in NYC reached $310 million in 2023
- Follow-on funding for NYC software startups was $6.7 billion in 2023
- Top deal: NYC software firm Datadog raised $500M at $40B valuation extension 2023
- Diversity-focused VC funds invested $320M in NYC software 2023
- Enterprise software Series B deals averaged $28M in NYC 2023
- NYC software funding represented 12% of US total VC in 2023
- Debt financing for NYC software firms hit $2.4 billion in 2023
Investments and Funding Interpretation
While AI and fintech may be grabbing the glitzy headlines, New York's software ecosystem proves its robust and diverse strength, from a vibrant seed stage cultivating hundreds of ideas to nearly ten billion dollars in exits, all underpinned by a serious and growing conviction from venture capital.
Revenue and Economic Impact
- The New York software development industry contributed $45.2 billion to the city's GDP in 2023, a 14% increase from $39.7 billion in 2022
- Software firms in NYC generated $28.6 billion in revenue from SaaS products in 2023
- In 2023, the tech sector including software dev paid $12.4 billion in wages to NYC residents
- NYC software exports reached $8.9 billion in 2023, primarily to Europe and Asia
- The multiplier effect of software dev industry spending supported 112,000 indirect jobs in NYC in 2023
- Software development contributed 7.8% to NYC's total private sector GDP in 2023
- In 2023, NYC software companies collected $2.1 billion in sales tax revenue
- Fintech software revenue in NYC hit $15.3 billion in 2023, 32% of total software revenue
- Average annual revenue per software employee in NYC was $312,000 in 2023
- NYC's software industry venture-backed revenue grew 19% to $22.4 billion in 2023
- Property taxes from software firm headquarters in NYC totaled $890 million in 2023
- E-commerce software platforms based in NYC generated $4.7 billion in 2023
- In 2023, AI software development revenue in NYC reached $6.2 billion, up 45% YoY
- Software dev firms paid $1.8 billion in corporate income taxes to NYS in 2023
- NYC software industry's R&D spending was $3.9 billion in 2023, 12% of revenue
- Cloud software services revenue from NYC firms was $10.1 billion in 2023
- In 2023, cybersecurity software revenue in NYC totaled $5.4 billion
- Software dev contributed $1.2 billion to NYC tourism via apps in 2023
- Average software firm profitability in NYC was 18.4% net margin in 2023
- NYC software M&A deals generated $7.6 billion in value in 2023
- Healthtech software revenue from NYC reached $3.8 billion in 2023
- In 2023, edtech software firms in NYC earned $2.3 billion
- Proptech software revenue in NYC was $1.9 billion in 2023, up 25%
- NYC software firms' international revenue was 41% of total at $18.5 billion in 2023
- Logistics software revenue in NYC hit $2.8 billion in 2023
- In 2023, adtech software from NYC generated $4.1 billion
- Gaming software revenue in NYC was $1.5 billion in 2023
- Cleantech software firms in NYC earned $900 million in 2023
Revenue and Economic Impact Interpretation
New York's software industry has become the city's most reliable non-unionized cashier, punching in a $45.2 billion GDP contribution while quietly funding everything from subway repairs to parks with its hefty taxes, robust exports, and surprisingly diverse portfolio of digital gold mines.
Salaries and Compensation
- The average base salary for software engineers in New York City was $148,000 in 2023
- Senior software developers in NYC earned an average total compensation of $245,000 including bonuses in 2023
- Entry-level software engineer salaries in NYC averaged $112,500 base in 2023
- Full-stack developers in NYC had median pay of $162,000 in 2023
- Data scientists in NYC software roles averaged $178,000 total comp in 2023
- Frontend developers earned $135,000 average base in NYC 2023
- Backend developers in NYC averaged $152,000 salary in 2023
- DevOps engineers in NYC had average comp of $192,000 in 2023
- AI/ML engineers in NYC earned $210,000 median total in 2023
- Cybersecurity software engineers averaged $165,000 base in NYC 2023
- Mobile app developers in NYC averaged $140,000 salary in 2023
- Cloud architects in software firms earned $220,000 avg in NYC 2023
- QA engineers in NYC software dev averaged $118,000 in 2023
- Software architects commanded $235,000 total comp in NYC 2023
- Fintech software developers averaged $168,000 in NYC 2023
- With 10+ years experience, NYC devs earned $275,000 avg total 2023
- Equity compensation for NYC software engineers averaged $45,000 value in 2023
- Female software engineers in NYC earned 94% of male counterparts at $142,000 avg 2023
- Startup software devs in NYC averaged $130,000 base, lower than Big Tech's $170k in 2023
- Bonuses for NYC software engineers averaged 15% of base or $22,000 in 2023
- Remote NYC software devs earned 8% less at $136,000 avg in 2023
- Brooklyn software salaries averaged $142,000 vs Manhattan's $155,000 in 2023
- Principal engineers in NYC topped $320,000 total comp in 2023
- Freelance hourly rates for NYC software devs averaged $85/hour in 2023
- Post-MBA software roles in NYC paid $195,000 starting in 2023
- Intern software devs in NYC earned $42/hour avg summer 2023
- Black software engineers in NYC averaged $138,000, 7% below city avg in 2023
- Total comp for staff engineers in NYC was $228,000 median 2023
- NYC software dev salaries rose 6.2% YoY to $148k avg in 2023
Salaries and Compensation Interpretation
New York's software landscape is a competitive hierarchy where your pay is a precise, if merciless, yardstick measuring your specialization, seniority, and proximity to both cloud servers and Manhattan skyscrapers.
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