Can the City Council help bring startups to New York City?

New York City may be the city that never sleeps, but as far as digital entrepreneurship goes, on paper it looks like the city may have taken a nap.

Out of the 500 fastest growing tech companies, NYC only has six. In the first half of 2008, New York City startups raised $926 million in venture capital. Nearby (and much smaller Boston) had more startups, that raised $2.6 billion in the same time frame.

The Bloomberg administration would like to change that, and is fostering a few programs to do so. Yesterday at City Hall, the City Council held a hearing to address some of the issues that have been hoding New York City back and what can be done to improve the city’s standing amongst other urban capitols around the country. While there may not be a silver bullet to bring New York City’s startup culture in line with Silicon Valley, the meeting was an eye opening look into some of the challenges at hand.