San Francisco (CBS SF / CNN) – Elon Musk, Hewlett-Packard Enterprise, Oracle – High-tech migration from Silicon Valley to Texas is gaining momentum.
Perhaps the most significant evidence of the so-called ‘textit’ is the Hulett Packard Enterprise’s move to Houston. Then on Friday, another longtime Silicon Valley stalwart, Oracle, announced plans to join them, saying it would relocate its headquarters in Austin.
A group of high-profile tech investors and executives are also leaving San Francisco: Last week, Musk said he moved to Texas after selling his Bel Air homes earlier this year.
Such a move is expected during an epidemic, when people are working from home anyway. Many tech firms have said that they will give employees the option to work permanently from home even after the epidemic ends.
But the transfer of corporate headquarters, company founders and big-name VC investors point to a corporate expatriate in the tech industry – and some have called the “Tech Exodus” from the Bay Area.
Some people who have already left San Francisco complained of mismanagement of the city and the state. While it is unclear exactly what they are referring to, California has implemented COVID-19 related restrictions that were technically important to some – particularly Musk – (although others in the industry have contrasted Was charged). Florida and Texas, by comparison, have implemented somewhat less stringent restrictions.
Silicon Valley also has very high real estate prices and California has a high personal income tax rate, while Florida and Texas have none.
Where are they going
A tech company is barely on the ground for Texas and especially Austin. Tech Hub, nicknamed “Silicon Hills”, is already home to industry leaders including Advanced Micro Devices, Dell and others.
As of November, 39 companies – Tech and other industries – had moved to Austin so far this year, according to data from the Austin Chamber of Commerce. Among them are 8VC, a venture capital firm run by Joe Londondale, co-founder of Palantir. Tesla is also building a 4 million-square-foot facility outside Austin that is expected to create 5,000 jobs, the Chamber’s record shows.
Although it is not a tech firm, the e-cigarette maker Juul Labs moved its corporate office from Bay Area to Austin last year.
“We talk about ourselves as Human Capital,” said Laura Huffman, president and CEO of the Austin Chamber, citing the region’s diverse and highly educated population as one of the reasons companies seek to move there. He said that 47% of the city’s working population has a bachelor’s degree, which has resulted in 25 colleges and universities in the area.
“I also would not underestimate the importance of quality of life,” Huffman said. “There are so many things about this community – it’s a great local flavor, a great music scene, it’s an outer city. That’s where people want to be. I think 2020 has taught all of us that we have where We live, he has more options. “
Miami Mayor Francis Suarez has also jumped at the opportunity to attract more leading companies in the region.
When Dalian Esparhov, a head of Peter Thiel’s Founders Fund and co-founder of Verda Space Industries, tweeted earlier this month: “Well, hear me out, if we move Silicon Valley to Miami, so what Will happen?[?], “Suarez immediately replied:” How can I help? “
On Monday, Suarez is hosting a virtual roundtable discussion to promote the city’s growing tech scene.
“If you want to increase Miami’s reputation as an international tech / startup hub and make Miami the city of the future, we want to hear from you,” Suarez said on Twitter. “Let’s work together to spur innovation and catalyze entrepreneurship.”
At least one tech leader was ahead of the curve at digging up Silicon Valley for the opposite coast – Reddit co-founder Alexis Ohanian tweeted earlier this month that he moved from San Francisco to Florida several years ago. (Serena Williams, then her fiance and now his wife, had been living there for years).
“People [were] Shocked, ”Ohanian said. “But how will you do business from South Florida?” Three years later, my professional life [is] Doing great … more [now there are] Each time another Silicon Valley departs for Miami.
Goldman Sachs based in New York is also reportedly looking at some operations for Miami.
Here is a group of some big names at Tech, who have announced plans to leave the Bay Area for Texas this year:
Hewlett Packard Enterprises: The company earlier this month announced plans to relocate its headquarters from San Jose to Texas. Houston is already its largest employment center, and the company is building a new campus in the city.
Oracle: Oracle is relocating its headquarters from Redwood City, California to Austin, although it plans to maintain a presence in California. “We believe these best position Oracle for growth and provide our personnel with more flexibility in where and how they work,” spokeswoman Deborah Hellinger told CNN Business.
Elon Musk: Tesla CEO revealed his move from California to Texas during the Wall Street Journal CEO Council’s annual summit meeting last week. He previously suggested on Twitter that he would relocate Tesla’s headquarters to Texas – which hasn’t happened yet, but the company is developing a larger facility outside Austin.
8VC: Lonsdale’s VC firm is relocating its headquarters from Silicon Valley to Austin. Lonsdale told the Austin American Statesman, “It has become really clear that there are a lot of places around the country, not Silicon Valley, not because of the cost of Silicon Valley. Last month.
Drew HoustonAccording to a report by The Information last month, the CEO of Dropbox bought a house in Austin and plans to make it his permanent residence.
Filetrail: The former San Jose-based firm, which produces record management software for law firms, moved to Austin in April.
DZS Inc.The telecommunications equipment firm said that in March it would move its headquarters from Oakland, California to Plano, Texas, and build a new “Engineering Center of Excellence” in the city.
QuestionPro: This online survey software firm announced its move from the Bay Area to Austin in January.
And here are some people who have recently moved to Florida:
David blumbergThe San Francisco Business Times reported earlier this month that Blumberg Capital, the founder and managing partner of early-stage venture capital firm Blumberg Capital, has left the Bay Area for Miami. According to Blumberg, Facebook, “We certainly hope and pray that California will take action to fix the disastrous self-inflicted political situation and restore its former luster and quality of life.” Times.
Keith Rabois: Rabois, a general partner of the Founders Fund and former executive at PayPal and LinkedIn, told a Fortune reporter last month that he was leaving the Bay Area for Miami.
Joe OringerAccording to the South Florida Business Journal, Shutterstock founder and executive chairman and a former New York resident bought a $ 42 million mansion in Miami Beach in October. Oringer has since formed Pareto Holdings, which aims to incubate and invest in startups in the Miami tech scene.
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