{"id":4779,"date":"2018-09-03T22:13:09","date_gmt":"2018-09-03T22:13:09","guid":{"rendered":"https:\/\/www.austinshortfilm.com\/blog\/why-startups-are-leaving-silicon-valley-the-economist\/"},"modified":"2018-09-03T22:13:09","modified_gmt":"2018-09-03T22:13:09","slug":"why-startups-are-leaving-silicon-valley-the-economist","status":"publish","type":"post","link":"https:\/\/www.austinshortfilm.com\/tech\/why-startups-are-leaving-silicon-valley-the-economist\/","title":{"rendered":"Why startups are leaving Silicon Valley | The Economist"},"content":{"rendered":"<p><iframe loading=\"lazy\" width=\"480\" height=\"270\" src=\"\/\/www.youtube.com\/embed\/C3tGfqmKe0M\" frameborder=\"0\" allow=\"autoplay; encrypted-media\" allowfullscreen><\/iframe><\/p>\n<p>The future of Silicon Valley is The Economist&#8217;s cover story this week. Why are people leaving, and startups going elsewhere?<\/p>\n<p>Click here to subscribe to The Economist on YouTube: https:\/\/econ.st\/2xvTKdy <\/p>\n<p>For decades Silicon Valley has been where you go if you want to make it big in technology but these days entrepreneurs<br \/>\nare starting to look elsewhere. Our cover this week is peaked Valley. Silicon Valley is home to three of the five most<br \/>\nvaluable companies in the world &#8211; Apple, Alphabet which is Google&#8217;s parent, and Facebook. But that&#8217;s starting to change.<\/p>\n<p>Its relative importance is starting to decline as other hubs become more attractive. More people are now leaving the area than arriving. Venture capital investors are spending a larger<br \/>\nproportion of their investments on companies outside the valley than they used to, and some big names are leaving &#8211; moving to other tech hubs such as Portland, Los Angeles, or Austin Texas.<\/p>\n<p>So why is this happening? Well, a big factor is cost. According to<br \/>\none entrepreneur it costs about four times as much to run a start-up in Silicon Valley than it does in most other American cities. But the Valley&#8217;s peak may also indicate that innovation is becoming more difficult in general. It&#8217;s getting harder to compete in the<br \/>\nshadow of the tech giants &#8211; they hoover up all the talent and they can afford to pay people more than startups can. The median salary at Facebook is now 0,000 dollars.<\/p>\n<p>Another worry is anti-immigrant sentiment and tighter visa restrictions, which makes it harder for smart people to go where the opportunities are. In America more than half of the leading tech companies were founded by immigrants or the children of immigrants. Silicon Valley isn&#8217;t going anywhere and if it&#8217;s relative decline heralded the rise of a thriving web of rival tech hubs that would be good news. Unfortunately the valleys peak looks more like a warning that innovation everywhere is becoming more difficult.<\/p>\n<p>Daily Watch: mind-stretching short films throughout the working week.<\/p>\n<p>For more from Economist Films visit: https:\/\/econ.st\/2MFURxs<br \/>\nCheck out The Economist\u2019s full video catalogue: http:\/\/econ.st\/20IehQk<br \/>\nLike The Economist on Facebook: https:\/\/econ.st\/2ML6TFY<br \/>\nFollow The Economist on Twitter: https:\/\/econ.st\/2ML6Ud0<br \/>\nFollow us on Instagram: https:\/\/econ.st\/2ML6PWK<br \/>\nFollow us on Medium: https:\/\/econ.st\/2ML6Wl8<\/p>\n<h3>More info on Why startups are leaving Silicon Valley | The Economist<\/h3>\n<div class=\"ss-local-rss\"><div class=\"rss_header\"><h2><a href=\"https:\/\/cn.bing.com\/news\/search\/?q=Why+startups+are+leaving+Silicon+Valley+%7C+The+Economist&amp;qft=sortbydate%3D%221%22&amp;format=rss\" rel=\"nofollow\" class=\"rss_title\">Why startups are leaving Silicon Valley | The Economist - BingNews<\/a><br \/><span class=\"rss_description\"> Search results<\/span><\/h2><\/div><ul>\n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66422542e50f410d8d0bb347b985617a&amp;url=https%3A%2F%2Fwww.wsj.com%2Ffinance%2Finvesting%2Fas-silicon-valley-pivots-to-patriotic-capital-china-ties-linger-7030bf93&amp;c=4294928932274763894&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tAs Silicon Valley Pivots to Patriotic Capital, China Ties Linger\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>Investors with connections to China are backing startups developing tech that the U.S. wants to counter Beijing.<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66422542e50f410d8d0bb347b985617a&amp;url=https%3A%2F%2Fwww.economist.com%2Ffinance-and-economics%2F2024%2F05%2F12%2Famerica-is-in-the-midst-of-an-extraordinary-startup-boom&amp;c=6473951867684425402&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tAmerica is in the midst of an extraordinary startup boom\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>Although America has a deserved reputation as a country at the cutting-edge of innovation, fuelled by entrepreneurial vim, in recent years some economists have worried that this reputation no longer ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66422542e50f410d8d0bb347b985617a&amp;url=https%3A%2F%2Fwww.businessinsider.com%2Ftech-layoffs-could-harm-productivity-recruitment-reputation-tesla-google-microsoft-2024-5&amp;c=11798334885473811972&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tTesla, Google, and Microsoft won't stop laying people off. Here's why that could backfire.\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>Job cuts at tech companies like Google, Microsoft, and Tesla could hurt morale, productivity, and talent retention, countering any financial benefits.<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66422542e50f410d8d0bb347b985617a&amp;url=https%3A%2F%2Ftechcrunch.com%2F2024%2F05%2F10%2Fstartups-weekly-trouble-in-ev-land-and-peloton-is-circling-the-drain%2F&amp;c=8331967141002940548&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tStartups Weekly: Trouble in EV land and Peloton is circling the drain\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>Haje's weekly recap of everything you can\u2019t miss from the world of startups. Sign up here to get it in your inbox every ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66422542e50f410d8d0bb347b985617a&amp;url=https%3A%2F%2Fwww.investopedia.com%2Fterms%2Fe%2Fentrepreneur.asp&amp;c=329832071540396366&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tEntrepreneur: What It Means to Be One and How to Get Started\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>They assumed that perfect information would be known to fully rational actors, leaving no room for risk ... can be built to a large scale\u2014think Silicon Valley. The hopes are to innovate with ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66422542e50f410d8d0bb347b985617a&amp;url=https%3A%2F%2Fwww.linkedin.com%2Fnews%2Fstory%2Fwhy-europe-trails-silicon-valley-6010932%2F&amp;c=4691887972021748505&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tWhy Europe trails Silicon Valley\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>Startups in the US must show a track record with customers, but European firms seek investment for an idea alone. Read more here.<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66422542e50f410d8d0bb347b985617a&amp;url=https%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Feconomy%2F2024%2F04%2F28%2Fwhy-are-so-many-people-leaving-the-uks-workforce%2F&amp;c=14359227164072249610&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tWhy are so many people leaving the UK\u2019s workforce?\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>The reason why people are economically inactive are complex and variable. For example, many young people are economically inactive because they are students. But the bulge in the UK numbers seems ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66422542e50f410d8d0bb347b985617a&amp;url=https%3A%2F%2Fwww.msn.com%2Fen-us%2Fmoney%2Fmarkets%2F10-reasons-why-people-are-leaving-california-and-won-t-look-back%2Fss-BB1kPFzS&amp;c=9537020703660729134&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\t10 Reasons Why People Are Leaving California and Won\u2019t Look Back\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>Business owners and their families are leaving the Golden State due to high minimum wages and an unfriendly business environment. They are also taking jobs with them. California has lost about ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66422542e50f410d8d0bb347b985617a&amp;url=https%3A%2F%2Fwww.ft.com%2Fcontent%2Feabb2104-e527-4b9b-869c-56991e444b58&amp;c=17935439921102752439&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tChinese regulators warn against Silicon Valley Bank-style meltdown\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>Simply sign up to the Sovereign bonds myFT Digest -- delivered directly to your inbox. A rally in Chinese government debt has sparked alarm among regulators in Beijing, who warn that regional ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66422542e50f410d8d0bb347b985617a&amp;url=https%3A%2F%2Fwww.timesfreepress.com%2Fnews%2F2024%2Fapr%2F27%2Fhamilton-county-teachers-reflect-on-why-educators%2F&amp;c=11840078198189290144&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tHamilton County teachers reflect on why educators are leaving the profession\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>Hayley Little always thought she was going to be a teacher, and for five years, she was. A lack of work-life balance that felt expected, feeling severely underpaid for the amount of work she put ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66422542e50f410d8d0bb347b985617a&amp;url=https%3A%2F%2Fwww.telegraph.co.uk%2Ftravel%2Fdestinations%2Fasia%2Findia%2Fbangalore%2Fhow-bangalore-reinvented-itself-silicon-valley-of-india%2F&amp;c=12984180646405840158&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tHow Bangalore became the Silicon Valley of India\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>Sitting under the ceiling fans in Koshy\u2019s Restaurant, a fixture in this city since 1952, it felt as though nothing had changed. White-uniformed waiters with silver buttons on their tunics ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=66422542e50f410d8d0bb347b985617a&amp;url=https%3A%2F%2Fwww.theguardian.com%2Fcommentisfree%2F2024%2Fapr%2F27%2Fsilicon-valleys-business-model-is-incompatible-with-the-moderation-of-online-horror-and-hatred&amp;c=6371204979438697726&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tSilicon Valley\u2019s business model is incompatible with the moderation of online horror and hatred\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>Managing the barrage of upsetting material online is a challenge that service providers are struggling to meet, even if they try Way back in the mid-1990s, when the web was young and the online ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            <\/ul> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>The future of Silicon Valley is The Economist&#8217;s cover story this week. Why are people leaving, and startups going elsewhere? Click here to subscribe to The Economist on YouTube: https:\/\/econ.st\/2xvTKdy For decades Silicon Valley has been where you go if you want to make it big in technology but these days entrepreneurs are starting to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4780,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[9],"tags":[2048,982,639,283,640],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/www.austinshortfilm.com\/wp-content\/uploads\/2018\/09\/C3tGfqmKe0M.jpg","_links":{"self":[{"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/posts\/4779"}],"collection":[{"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/comments?post=4779"}],"version-history":[{"count":0,"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/posts\/4779\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/media\/4780"}],"wp:attachment":[{"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/media?parent=4779"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/categories?post=4779"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/tags?post=4779"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}