Silicon Valley startups are trying to rise elsewhere

moment, high-tech district in the United States blossom everywhere, from Denver to Washington DC, Austen, Texas, to Tennessee, Chattanooga, entrepreneurs are looking for more superior business compared to Silicon Valley, not only have a better quality of life, and the operation is also lower.


according to "the Wall Street journal" reported that former U.S. online companies (AOL) and CEO revolution limited liability company founder Steve · Keith (Steve Case) said that this is a real "external rise" phenomenon. However, like other regions, Silicon Valley start-ups are growing fast, and even faster, but it undermines the development of the industry, from transportation to accommodation, retail and media, etc.. Therefore, Silicon Valley is the merger was dispersed in the industry, the winner has become more aggressive and competitive company through occupy more markets, more money, the business atmosphere has become the most important part of Silicon Valley.

Dow Jones venture capital data show that in 1995 30% of venture capital investment in the United States in the Silicon Valley area of the company, to 2015, this figure is close to 50%.

venture capital is highly cyclical. It reached $84 billion in 2000, down to $2003 in, and then soared to $68 billion in 2015. But the only thing that has not changed is that the Silicon Valley area has been an increase in the proportion of venture capital to an average annual growth rate of about 1 percentage points. If this trend continues, over a generation or so, Silicon Valley will likely be the only area where anyone can create a business.

there are many factors contributing to this trend. The first is the advantage of proximity, the Internet has created a better, more liquidity and investment in the market, making it easier for companies to find the best people, and vice versa. In addition, because the company kept private properties over a long period of time, the post financing round of great risk investment is changing, many from public funds in the market are now slowly into the investment market, but because of the largest private high-tech companies are mostly located in the Silicon Valley, which leads to public funds has been concentrated back to the area.

even when companies start to do business outside Silicon Valley, they often have to take advantage of Silicon Valley’s financing environment and talent pool. Then, with the growth of the company, Silicon Valley is also the most likely to find suitable management personnel.

strikingly, this is exactly the opposite of the first industrial revolution. At that time, it was difficult for the machine and the human to move, but the idea was free to spread, which helped the Industrial Revolution spread from the epicenter of the northern England to the latest in China and africa. But now, people and capital can flow, and in the Silicon Valley region, such as high housing market factors, liquidity will be more prominent.

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