Some of the biggest and most well-known technology companies in the world got their state in Silicon Valley, launching their businesses with the help of venture capitalists and the amenities the startup ecosystem provides in the area. While Silicon Valley still remains the home of many tech giants, however, it is no longer the only place- or even necessarily the best place – for fledgling companies to go.
Is Silicon Valley Still the Best Option for a New Tech Company to Get Its Start?
Silicon Valley is still the home of major tech companies such as Google, Twitter and Facebook. Of course, these companies have moved well beyond the startup stage and are now full-fledged businesses that have already had their IPO and who have stock shares that are sold to the public on the stock exchange.
For a new company starting out, the question is: should you go to Silicon Valley where all of these other greats got their start or should you consider taking your new business to other new places where startup funding is available and where newer Silicon-Valley style business climates await without the high cost of living and high taxes that you find in the Silicon Valley area? Remember, if you’re looking to do business in California and your company is from another state or country, you need to file a CA qualification.
To be sure, there are still a huge number of benefits associated with choosing Silicon Valley as the top place for a new tech business to start. First and foremost is the fact that the established reputation of Silicon Valley as the startup capital means that entrepreneurs and venture capitalists still flock to the area in droves.
In fact, Entrepeneur.com indicates that Silicon Valley has 35 percent more serial entrepreneurs and 20 percent more mentors for new companies and techies than any of the other entrepreneurial Silicon-Valley wanna-be locations throughout the United States. This means that if you want to find money and investors, you can find them in Silicon Valley (provided you have a good idea, of course).
Not only are there a huge number of entrepreneurs and mentors in Silicon Valley, but a report by Startup Compass also indicates that the entrepreneurs there are considered to be more ambitious and are willing to put in longer hours. This means there is a good chance of finding top talent and top investors who are willing to take the time to work with you to grow your great idea.
The conditions in Silicon Valley have allowed the area to persistently attract investors to the area, which largely explains why it still ranks as the number one location throughout the United States for venture capital investment.
The difference between California’s start-up environment and those in other states is no small difference either. The state has raked in more venture capital funding than the entire next nine starts combined, in large part because of both Silicon Valley and because of a hot startup scene in Los Angeles called Silicon Beach.
However, Silicon Valley is also not the only place for entrepreneurs either. There are a huge variety of different startup hubs that have opened across the United States that look to attract investors and people with the next great idea.
Many of these other locations throughout the United States have adopted the moniker “Silicon,” in order to capitalize on the popularity of Silicon Valley and to try to draw people in to make investments and build a startup climate similar to that enjoyed in this famous California location.
For example, the city of Portland in Oregon has dubbed itself “Silicon Forest,” while New Orleans tried out the name “Silicon Bayou” in order to try to build a startup climate in its local area. Even Des Moines Iowa has joined the trend and is now dubbed “Silicorn Valley.”
These alternative locations, in many cases, offer some things that California does not, such as a more relaxed business climate with fewer regulations; lower income and business taxes; and a lower cost of living that new tech entrepreneurs might appreciate. However, they don’t have the same level of recognition in the tech or venture capital markets as the original Silicon Valley does. They aren’t home to as many investors, they aren’t home to as many entrepreneurs and they aren’t the places where people will necessarily go if they are thinking about starting up or investing in an exciting new company.
As such, while one of these new Silicon-Valley-inspired entrepreneurial hubs may one day become the next big thing, Silicon Valley is still where it is at today for those who are interested in making a go of it in the field of start-ups and technology.