SAN FRANCISCO (CNN) – Silicon Valley has been the center of technology for decades, beginning in 1938 with Bill Hewlett and David Backard sinking into the Palo Alto garage.
But that is likely to change. Probably the most important piece of evidence: Hewlett Packard Enterprise, a descendant of the company they founded, will move its headquarters to Texas. On Friday, Oracle, another longtime Silicon Valley leader, announced plans to join them, moving its headquarters to Austin.
A string of high-tech investors and executives is also leaving San Francisco: Last week, Elon Musk said he sold his Bel Air homes earlier this year and moved to Texas.
People should expect such moves during epidemics when working from home anyway. Many technology companies claim that this gives employees the opportunity to work permanently from home even after the infection is over.
The relocation of corporate headquarters, corporate founders and big name VC investors points to a corporate diaspora in the technology sector – and some call it the “technological exit” from the Bay Area.
Some who have already left San Francisco have complained of mismanagement of the city and state. Although it is not clear what they mean, California has enforced COVID-19-related restrictions that some in the technology – especially Kasturi – have criticized (although others in the industry do the opposite). Florida and Texas, in comparison, used slightly less stringent restrictions.
Silicon Valley also has the worst real estate prices, with the highest per capita income tax rate in California, while none in Florida and Texas.
Where are they going?
It is rare for a technology company to disintegrate in Texas and especially in Austin. The technology center, nicknamed “Silicon Hills”, is already owned by industry leaders including advanced micro devices, Dell and others.
As of November, 39 companies in the technology and other industries have relocated to Austin so far this year, according to the Austin Chamber of Commerce. 8 of them are VC, a venture capital firm run by Fruit Co-founder Joe Londonstale. Tesla is also building a 4 million-square-foot facility outside of Austin, which is expected to create 5,000 jobs, chamber records show.
Although it is not a technology company, e-cigarette maker Jules Lapes moved his corporate office from the Bay Area to Austin last year.
Laura Huffman, president and CEO of the Austin Chamber, said, “Institutions seek to relocate there, citing diverse and highly educated people in the region, noting that 47% of the city’s working population has a bachelor’s degree, thanks to 25 colleges and universities in the region.
“I do not underestimate the importance of quality of life,” Huffman said. “There’s a lot about this community – it’s a great local taste, a great music scene, it’s an out-of-town. That’s where people want to be. I think 2020 has taught us that we have more choice when it comes to where we live.”
Miami Mayor Francis Suarez also has the opportunity to attract more leading companies to the region.
Earlier this month, Delian Asparohov, co-founder of Peter Thiel’s Founders Fund and co-founder of Wardha Space Industries, tweeted: “Well guys, listen to me, what if we move Silicon Valley to Miami?[?], ”Suarez quickly replied:“ How can I help? ”
On Monday, Suarez will hold a virtual circular discussion on how to nurture the city’s emerging technology scene.
“If you are interested in developing Miami’s reputation as an international technology / startup center and making Miami a future city, we would love to hear from you,” Suarez said on Twitter. “We will work together to promote innovation and promote entrepreneurship.”
There was a technological leader ahead of the curve pushing Silicon Valley to the opposite shore – Reddit co-founder Alexis Ohanian tweeted earlier this month that he flew from San Francisco to Florida several years ago. (Then his fiance and now his wife Serena Williams lived there for many years).
“People [were] Was shocked, ”Ohanian said. “‘But how do you do business from South Florida?’ Three years later, my business career [is] Well done… and [now there are] Each time another Silicon Fence administrator leaves for Miami. ”
New York-based Goldman Sachs is also reportedly looking to move some operations to Miami.
Who is leaving?
Here is a solution to some of the big names in technology who announced plans to leave the Bay Area for Texas this year:
Hewlett Packard Enterprises: Earlier this month the company announced plans to move its headquarters from San Jose to Texas. Houston already has its largest employment center, and the company is building a new campus in the city.
Oracle: Oracle is moving its headquarters from Redwood, California to Austin, although it plans to maintain a presence in California. “We believe Oracle’s position is optimistic for the growth of these moves and will give our employees more flexibility about where and how they work,” spokeswoman Deborah Hellinger told CNN Business.
Elon Musk: Tesla CEO announced his move from California to Texas last week during the Wall Street Journal’s CEO Annual Council Summit. He previously suggested on Twitter that Tesla relocate its headquarters to Texas – which has not yet happened, but the company is building a larger facility outside of Austin.
8 V.C.London-based VC is moving its headquarters from Silicon Valley to Austin. “It is clear that there are plenty of places to build across the country, not just Silicon Valley, but the cost of living, talent and all sorts of other things, culture and nothing,” Lonstell told Austin American Statesman last month.
Drew Houston: Dropbox CEO buys a house in Austin and plans to turn it into his permanent home, The Information reported last month.
FileTrail: A former San Jose-based company that develops registration management software for law firms moved to Austin in April.
DZS Inc.: The telecommunications equipment company said in March that it would move its headquarters from Oakland, California to Plano, Texas, to create a new “engineering excellence center” in the city.
Questioned: The online survey software company announced in January that it was moving from the Bay Area to Austin.
Here are a few who recently visited Florida:
David Plumberg: The San Francisco Business Times reported earlier this month that Plumberg Capital, founder and managing partner of start-up venture capital firm, has left the Bay Area for Miami. “We certainly hope and pray that California will take action to rectify the devastating self-inflicted political situation and restore its former glory and quality of life, but for now we are voting with our feet,” Plumberg said on Facebook. Times.
Keith Rabois: Rabois, a public partner at Founder Fund and a former executive at PayPal and LinkedIn, told a Fortune reporter last month that he was leaving the Bay Area for Bay Miami.
Joe Oringer: Founder and CEO of Shutterstock, a former resident of New York, bought a $ 42 million mansion on Miami Beach in October, according to the South Florida Business Journal. Oringer has created Barreto Holdings, which aims to incubate and invest in startups in the Miami technology scene.
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