Crains New York - May 14, 2012 - (Page 1)

INSIDE TOP STORIES Jamie Dimon’s $2 billion ‘oops!’ ® Brooklyn Brewery taps new leaders PAGE 2 In the Markets Page 6 VOL. XXVIII, NO. 20 WWW.CRAINSNEWYORK.COM MAY 14-20, 2012 PRICE: $3.00 Tech startups moving to NYC Out-of-town broker hits a local wall PAGE 2 Wave of digital companies from across U.S. sees Big Apple as base for next-stage growth BY MATTHEW FLAMM It took three years and $1 million for the founders of Next Big Sound to build their company out of an incubator lab in Boulder, Colo. But in January, when a second financing round brought in $6.5 million,it was time to head for the big city. And there wasn’t any question which one. “Our clients are in New York,” said Alex White,chief executive and co-founder of Next Big Sound, which analyzes data for the music industry, and which officially makes Manhattan its home June 1. “It’ll cost us more, but the ability and Pearson’s test flubs could cost it dearly PAGE 4 Enrollments are up at summer camps SMALL BUSINESS, PAGE 14 speed with which we’re able to de- vate investors, and supported with velop products will be accelerated.” incubator labs and other shared For decades, New York work spaces, some of them has been known as the sponsored by the city.There’s town companies left when also proximity to hometown they needed to expand and industries like media, adverREVENUES for couldn’t afford the higher tising, fashion and finance— software firm Infor, which salaries and rent. But a reall going through digital dismoves its HQ versal is taking place ruptions—and a growing here in June among tech firms: Compapool of engineers, as well as nies are moving here. seasoned entrepreneurs who can They’re drawn by a thriving offer encouragement and advice. See TECH on Page 22 ecosystem fed by money from pri- $2.8B Real Estate Report: Third Ave. bargains PAGE 15 Super PACs eyed for mayoral election Biz groups’ millions could upend 2013 race for City Hall BY DANIEL MASSEY Conventional wisdom in city politics holds that the only alternative to the campaign finance system is for a billionaire candidate like Michael Bloomberg to throw tens of millions of dollars into a run. But the phenomenon of super PACs is about to flip that thinking upside down. From Utah to Indiana, these giant funds have spent millions to shape elections. Now they’re poised to come to New York City,where they could shake up the 2013 mayoral race by promoting a business-friendly candidate who might not be able to self-finance. “There will be super PACs,” said New York Republican State Committee Chairman Ed Cox. “It’s impossible not to have them. They’re a part of the process now.” While their arrival may be inevitable, there are plenty of question marks. Strict local disclosure laws mean super PACs here will be See PACS on Page 22 BUSINESS LIVES GOTHAM GIGS Helping parents make the grade P. 25 ● ANNE FISHER Ego stifles innovation P. 25 MOVERS & SHAKERS Bike-share’s chief cyclist gets ready to roll P. 26 GAEL GREENE Beirut import offers bold take on Mideast cuisine P. 27 ● ● INDEX NEW YORK, NEW YORK __________________________8 THE INSIDER _______________________________________________10 NEIGHBORHOOD JOURNAL _____________11 VIEWPOINT ___________________________________________________12 FOR THE RECORD ___________________________________19 CLASSIFIEDS ______________________________________________20 HOT JOBS ______________________________________________________25 EXECUTIVE MOVES _________________________________25 THE WEEK AHEAD ___________________________________27 FASHION GETS FAST Trend-driven retail industry’s need for speed is changing how apparel outfits do business BY ADRIANNE PASQUARELLI Looking to kick its retail operations into higher gear, hipster clothing chain Brooklyn Industries last fall borrowed from the playbook of higher-flying competitors H&M and Zara, known for what the retail world calls “fast fashion,” or ultraquick turnaround of the latest designer styles. “When you think fast fashion, you think of cheap designs copied from the runway,” said Lexy Funk, chief executive of the 13-unit chain. “We want to innovate with original designs but do it in a fast manner.” To get stylish duds on the selling floor more rapidly, Ms. Funk has shifted some of her chain’s production to New York. In one example, it took just six weeks to design and deliver a line of leather bags to her stores, See FAST FASHION on Page 9 NEWSPAPER buck ennis LEXY FUNK OF BROOKLYN INDUSTRIES: Her specialty retail chain makes more goods locally so that new merchandise arrives in weeks rather than months. http://WWW.CRAINSNEWYORK.COM

Table of Contents for the Digital Edition of Crains New York - May 14, 2012

Crains New York - May 14, 2012
Contents
Brooklyn Brewery taps new leaders
Out-of-town broker hits a local wall
Pearson’s test flubs could cost it dearly
Enrollments are up at summer camps
Real Estate Report: Third Ave. bargains

Crains New York - May 14, 2012