VCs say Silicon Valley isn’t the gold mine it used to be

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More and more, venture capital is being deployed outside the Silicon Valley. The reasons for this are largely economical as rental escalation have made it virtually impossible for young people to live and innovate in this area. As a result, many young innovators are opting to stay at home instead. Some who have been located in the Bay Area are moving out as their business scales up. In past times this would have been seen as a failure. Now it is seen as a keen business decision. Another cause is the rise of foreign entrepreneurs, particularly in China. Those in the know have speculated that the Chinese put in crazier hours and are more driven then American entrepreneurs. The explanation for this extra drive is an enhanced sense of desperation felt there.

Key Takeaways:

  • Tons of people want to move to the city of San Francisco as there is so many opportunities there.
  • The massive industry that is private equity, and start ups, still primarily reside in this area.
  • There is a ton of money to be made if things are done the right way by prospective workers in this space.

“She advises her Bay Area-based late-stage companies to open a second office outside of the Valley where lower-cost talent is available.”

Read more: https://techcrunch.com/2018/09/21/vcs-say-silicon-valley-isnt-the-gold-mine-it-used-to-be/

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