New York City is Getting Awfully Expensive for a Legal Tech Company’s Business Development Efforts

Getting a legal tech startup up and running—especially one without a financial partner—is a challenging endeavor, and the financial hurdles are only growing.

In the early days of LexBlog, I “walked the streets” of New York City, figuratively speaking, by emailing large law firm CMOs. I’d let them know I’d be in town and told them, “I’d be remiss if I didn’t let you pick my brain about blogging for business development.”

Four out of five would take me up on the offer.

The challenge, though, was the cost. For a startup spending more than it brought in, the price of a trip to New York City was daunting.

I flew TWA from Seattle, with a stop in St. Louis, and relied on Hotwire to book a hotel where I didn’t even know the name of the property until after I’d paid. For three nights and three days, I scraped by on a budget of $500 or $600.

That kind of trip would be unthinkable today.

Matthew Haag of The New York Times reports that the cost of an average hotel room in New York City hit $417 per night in September, the highest ever recorded. The only place more expensive? Maui.

Entrepreneurs traveling to New York now face a perfect storm: a booming tourism industry, fewer new hotels being built, and many existing hotels repurposed to house migrants. And it’s not just hotels. Airfare costs have also doubled, adding another layer of financial strain.

There’s no substitute for in-person meetings with potential clients, existing clients, and partners in major cities like New York. For startups, these meetings remain a crucial part of growth.

It’ll just cost a lot more to make them happen.

I’ll enjoy the New York City increases the week after next.