Some startups are leaving Silicon Valley after seed funding
It is no longer a must for technology startups to call Silicon Valley home as more companies are choosing to either start their business elsewhere or end up moving out of the Bay Area after raising funds.
“The tech ecosystem is no longer just a Silicon Valley thing, which I think is really exciting,” Aileen Lee, founder of Cowboy Ventures, said at the Silicon Slopes Tech Summit in Salt Lake City, Utah.
The Silicon Slopes Tech Summit brings together more than 20,000 people to see leaders in the industry discuss new trends and technologies that are advancing the broader tech community.
Lee noted that over the past two years, Cowboy Ventures has been meeting with an increasing number of companies that were founded outside of the Bay Area. A stark difference from prior years, when she would have conversations with startups about moving to Silicon Valley to have greater access to talent and funding.
“Now we’re seeing actually at seed stage – for the first time in my career – people who raise money and who were based in San Francisco, and after they raise their money, they move out,” Lee said.
In fact, learning platform Guild Education raised seed funding from Bay Area investors, including Lee’s Cowboy Ventures, but shortly thereafter, the company wanted to move to Colorado.
“I have to admit, I was a little nervous,” Lee said of Guild Education’s decision to move. “Working with Guild — and seeing what a world-class team they’ve built, and also the culture and the values, the quality of life but also the quality of execution of the company — has given me so much confidence about how whether it’s Seattle, Denver, Salt Lake City, Park City, Austin, Atlanta, Chicago, Indianapolis, it’s going to happen more and more. And it’s really exciting.”
Nasdaq.com will have continuing coverage of Silicon Slopes; please check back for more stories.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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