Entrepreneurs admitted that the cost of living and working in New York City is a hurdle to growing a business, but the opportunities and resources help make up for the expenses. Glusman said he has seen the general cost of operating in the industry decrease in the last five years, as the amount of capital needed for social media endeavors has gone down.
Plus, the city provides a fertile ground for experimentation unlike any other.
"New York City is willing to try new things at a much faster rate than any other cities," said social media application Foursquare's co-founder Naveen Selvadurai. "Because of [the city's] high density of people, there is always new content to feed through the system."
In addition, the city itself actively working to entice new businesses and entrepreneurs. Mayor Michael Bloomberg announced at the city's TechCrunch Disrupt conference in May that the city is setting up a $22 million entrepreneurial fund to support New York-based tech start-ups.
When asked at TechCrunch why companies should choose New York over Silicon Valley, Bloomberg said, "It's a great place where intellectual capital is important. If you want to compete in the big pond, if you want a breadth of cultural opportunities … this is the place to come."
Austin, on the other hand, would beg to differ.
ABCNews.com contributors Travis Measley and Caitlin Mangum are members of the ABC News on Campus bureau in Austin, Texas.