In recent years, northern California saw its share of startups become profit-driven businesses. The numbers don’t lie—the Bay Area consistently makes appearances on lists of cities most attractive to businesses.
However, today’s Silicon Valley is no longer the counterculture cluster of businesses it was in the 1980s. Now, organizations like PayPal and Twitter want to do business there and, increasingly, 30 miles north in San Francisco. Nonetheless, both communities continue to appeal to new companies.
This shift in California—startups moving away from the suburbs and into the city—is happening in many major cities in the United States and throughout the world, including Berlin and Boston. Land may be cheaper in suburban neighborhoods, but that particular advantage does not outweigh the many opportunities that city environments provide.
As Atlantic Cities author Richard Florida puts it, “this urban shift in venture capital and startups is in line with the long held view that dense cities, as opposed to sprawling suburbs, provide the ecology required for breakthrough innovation.”
Despite more venture capitalists heading toward San Francisco to find new businesses to invest in, there are still plenty of deals happening in Silicon Valley. Another Atlantic Cities article showed that in 2012, the margin between these two northern communities are only 47 contracts. Therefore, up-and-coming startups have many opportunities to get in touch with these lenders.
The appeal to kick start a business in either community does come with a cost. Rent, taxes and the cost of living are higher than in many parts of the United States. Visiting Northern California used office furniture stores is a popular way to save money when a company commits to the higher cost of living in a more expense urban city.