Economic Impact Study

The School of Engineering's incubators have generated more than $250 million in economic activity and 900 jobs in the past four years. This public-private-academic partnership is shaping New York’s economy. Download or read our Economic Impact Study below.

Economic Impact Study (Slide Deck)

Named one of the Top 10 Idea Labs in the U.S. by Worth magazine, the School of Engineering Incubators—Varick St., DUMBO and NYC-ACRE—are changing the landscape of New York City for the better. As the first NYC-sponsored Incubators and cornerstones of the NYU Entrepreneurial Institute, the programs are designed to empower entrepreneurs from across NYC and NYU who are creating jobs, launching new technology products and services and diversifying the local innovation ecosystem.

The Incubators help first-time and serial entrepreneurs acquire affordable space and legal services, help in finding engineering talent and offer top-tier mentorship. Incubator teams benefit from staff who are entrepreneurs, employing the Lean Startup Methodology. Since 2009, the Incubators have served more than 100 companies, with 5 of those acquired by established public and private companies. Program graduates have created more than 900 jobs and raised more than $60M in equity funding.

The School of Engineering's Incubators leverage support from NYCEDC, NYSERDA, and other government entities, as well as from Trinity Real Estate and Two Trees Management Company, and now Forest City Ratner Companies.

Economic Impact Analysis

An analysis that included surveying 102 current and previous tenants and one-on-one interviews with six selected companies, led by Dr. Jill Kickul from NYU Stern and supporting members from Harley and Company and Zain Yousaf, was undertaken between October 2012 and January of 2013 (All statistics are as of December 2012).

Key Findings were that the School of Engineering Incubators

  • Drive significant economic activity
  • Foster production of ground breaking technologies in diverse industry sectors
  • Benefit businesses through public/private participation and access to academic resources
  • Strengthen the School of Engineering academically and through Workforce Development
  • Create jobs
  • Provide over 500 internship opportunities (Since 2009(
  • Help start-ups raise capital

Economic Impact

  • Through both direct and indirect job creation, taxes and spending, the joint economic impact of the Incubators has been $352 million
  • In 2014 Incubator companies generated $87.5 million
  • By 2015, the impact is projected to be $719.8 million

Strong Job Creation

  • Since 2009 the School of Engineering Incubators have created 1256 jobs
  • By 2015 the Incubators will have created nearly 2,600 jobs
  • More than $145 million in funding has been raised by incubator companies to date
  • The average Series A funding for an incubator company was $4.8 million
  • The average graduate of an NYU Poly Incubator makes $72,230 annually
  • Former and current members contributed roughly $31.4 million in tax revenue from ‘09 to ‘12

Capital Raised

  • Current tenants can expect a funding growth rate of 147% from the time they enter the Incubators until they graduate
  • Incubator graduates have substantially higher funding/revenue upon graduation
  • More than $60 million in total has been raised by Incubator companies to date

Some Facts about the School of Engineering Incubators

In 2009, the School of Engineering saw the opening of its first two Incubators, the Varick St. and NYC ACRE (Accelerator for a Clean and Resilient Economy), in Hudson Square, Manhattan, with a third opening in the Brooklyn neighborhood of DUMBO in 2012. Currently there are 59 companies in the Incubators representing a wide range of new technology services and products.

  • Varick Street (2009)
    • Fosters: Advertising tech, education tech, cyber security, financial tech, big data, mobile and IT
    • Current tenants: 22
    • Graduates: 31
    • Established with support from the NYCEDC and Trinity Real Estate
  • NYC ACRE at the Urban Future Lab (2014)
    • Fosters: Clean tech, cleanweb and energy startups
    • Current tenants: 13
    • Graduates: 17
    • Houses NYC ACRE, which began at Varick Street in 2009 with a grant from NYSERDA and relocated to the Urban Future Lab in 2014
  • DUMBO (2012)
    • Fosters: Hardware, digital media and mobile
    • Current tenants: 9
    • Graduates: 6
    • Established with support from the NYCEDC and Two Trees Management Company