Moving to Silicon Valley – Bay Area, in the San Francisco area of the USA is a long-standing dream of many entrepreneurs globally.? The Silicon Valley – Bay Area has been one of the pioneer startup regions in the US with the likes of Steve Jobs of Apple and Larry Page of Google breaking ground here. The city still attracts hundreds of startups and entrepreneurs despite the development of several other startup ecosystems in America. Here is a comprehensive guide about Silicon Valley – Bay Area’s startup ecosystem and the various factors that drive it. It will help you in knowing everything you need to know about the business environment before you plan a move to the Silicon Valley – Bay Area.
7.6 million people reside in this world famous startup ecosystem. The population comprises of skilled labour workforce and entrepreneurs belonging to diverse niches. According to a report by the World Economic Forum, two of the factors that are helping businesses in the US thrive is the presence of the right framework to help increase business efficiency and innovative ideas. Moving to the Bay Area can be rewarding for startups and job seekers in the startup scene as the ecosystem is one of the oldest yet highly developed ones in America.
Silicon Valley- Bay Area, has a GDP of $619 billion which is contributed by diverse industries in the region. The primary sub-sectors contributing to the regional economy are social and digital media, IT and software, cleantech, international business, and life sciences and biotech. These industries are responsible for creating a sustainable job market in the region owing to which more and more professionals are moving to the Bay Area.? Moving to Silicon Valley Bay Area can do wonders to your entrepreneurial ventures if they are based in these soaring industries. A lot of young professionals look forward to playing multi-faceted roles at their jobs and startups offer the best opportunities for the same.
Why Should You Move to Silicon Valley – Bay Area
Silicon Valley- Bay Area, is one of the vital startup hubs globally and access to local startup leaders who want to give back to the community are a resourceful asset to those moving here. Local startups in the Bay Area got investments of $25 billion in 2017, and the area is also home to several unicorn companies.
Silicon Valley – Bay Area Poses the Ideal Location for Running a Business
The importance of good connectivity of a city when running a business cannot be stressed enough. The connectivity is not just crucial for entrepreneurs and their associates but also for transportation of essential materials required for the smooth running of businesses. Silicon Valley – Bay Area is connected via three airports and several in and around the region. Moving to the Bay Area can help companies to ensure that their businesses do not face any transport related logistics issue for shipping things in and out of the region.
Move to Silicon Valley – Bay Area, a Preferred Business Destination
One of the important factors that make moving to Silicon Valley – Bay Area such a good choice for startups is that the city is one of the most preferred business destinations.? This can be attributed to the presence of consumers who prefer variety in the products and services offered to them. This is why there are hundreds of B2C startups in the region that are flourishing. Moving to the Bay Area gives startups a chance to showcase their products along with their competition while giving them an opportunity to polish their ideas to make them stand out. Startups in the Bay Area can be a part of dedicated marketplaces for various startup niches which makes it easier for consumers as well as investors to pick one company over the others.
This facilitates a better evaluation of companies within the same sector. Move to Silicon Valley – Bay Area to get access to the thousands of wealthy angel investors looking for disruptive ideas to fund. What’s impressive about this large community of investors is that most of them are willing to invest more than just money and are actively involved in helping startups in Bay Area with guidance and helping them make the right connections. With more than 18000 angel investors in the region, startups are bound to find financial support from one or the other investor from this pool.
Move to Silicon Valley – Bay Area for Access to the Right Resources
While there may be many other cities in North America to set up a startup, not all of these cities offer equal footing when it comes to funding. Startups in the Bay Area can rely on the vast network of angel investors and venture capital partners in the city for finding monetary support for their business venture.? More the number of investors in a city more the chances are for you to find a funding source. There are over 200 venture capital funding parties in the Bay Area alone.
The availability of decent office spaces is imperative for any business. While real estate costs in Silicon Valley – Bay Area are higher due to the increasing demand for commercial spaces, there are many other alternatives that startups in the Bay Area can explore. Entrepreneurs can move to the Bay Area and save costs by setting up their offices in many of the coworking spaces in the city. RocketSpace is a popular choice for entrepreneurs in the San Francisco Bay Area and has been home to over 15 businesses that rose to become unicorn companies in the tech sector. They have co-working space packages to suit different office needs and many initiatives to help their customers grow.
Business ideas do not translate into successful ventures due to lack of guidance and mentorship. If you are a startup that is looking for leadership and direction, moving to Bay Area can help you get access to both. The Bay Area is brimming with successful entrepreneurs and other experts who are open to mentoring startups to help succeed. A lot of these mentors are from the larger community of investors who are willing to invest more than money and offer guidance to the many startups in the Silicon Valley Bay Area.
Soaring Startup Sectors in Silicon Valley – Bay Area
Every startup ecosystem cannot be the same, and its supporting factors can shape what industries grow within the ecosystem. The main areas that are booming in Silicon Valley- Bay Area include:
Social and Digital Media
Entrepreneurs whose business ideas are based in these sectors can find a number of resources to launch their startups successfully as compared to other less prominent areas.
The tech sector in Silicon Valley Bay Area is one of the prominent startup sectors and the central industry that shaped the current startup ecosystem into what it is today. Tech entrepreneurs comprise a significant proportion of the professionals who move to the Silicon Valley Bay Area for better business opportunities. Some of the important sub-sectors within the tech niche are:
AI, Big Data, and Analytics Startups in Silicon Valley – Bay Area
Home to some of the biggest tech companies’ AI teams, this sub-sector has many success stories. One notable one is that of MindMeld which is an advanced AI platform and was acquired by Cisco for a staggering $125 million. AI teams of tech leaders like Facebook, Uber, and Google have been sourced from Silicon Valley – Bay Area and the sub-sector was responsible for bringing in 20% of the total local venture capital funding. Entrepreneurs moving to Silicon Valley- Bay Area with startup ideas based on this sub-sector find themselves in a highly competitive startup environment. The AI, Big Data and Analytics sub-sector have seen numerous impressive exit deals in recent years.
Fintech Startups in Silicon Valley – Bay Area
The Fintech sub-sector in Silicon Valley – Bay Area has the edge over major other fintech startup ecosystems like New York or London owing to the staggering amount of investments in the region. The Bay Area has outdone these cities in terms of the funding since 2012 and has commanded a 13% share in the total local venture capital funding. SoFi, PayPal, Lending Club and Square are some of the top fintech startups in the Bay Area. SoFi is a wealth management company that raised over $2 billion till date.
Biotech Startups in Silicon Valley – Bay Area
The local Biotech sector in Silicon Valley – Bay Area boasts of having a magnanimous share in the global biotech funding at 25%. The regional sub-sector witnessed funding of more than $10 billion in the last six years. The presence of top-notch research centres and universities like Stanford University, UC Berkley, and UCSF. These universities play a significant role in replenishing the pool of talent for the regional biotech startup ecosystem. Apart from prominent names like Genentech and Exelixis, several other local startups are growing manifold. Freenome, an innovative cancer screening product manufacturer raised $65 million within two years of the inception of the company.
Silicon Valley – Bay Area checks all the boxes when it comes to features that make it an idea startup ecosystem for tech companies. The city has a good pool of talent and investors and provides excellent connectivity.? Many ecosystem partners like Crunchbase, Parisoma, Manos Accelerator, LaunchPad, Computer History Museum, Startup Genome, and several of its members are continually providing all that this tech startup ecosystem needs to flourish.
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