When you live on the West Coast, you’re probably no stranger to tales of friends or relatives who’ve decided to escape the corporate grind and build a startup. These people are often driven, talented, and independent. They’re people like Ryan, for instance, who quit his day job to focus on his passion project here in San Diego. He had a great idea and the energy to make it happen, but it just wasn’t smooth sailing for his young company. He expected to work long hours and stress over his finances, but what he didn’t expect was to struggle to find talented employees, let alone an investor or two.
As hard as San Diego might try to live up to the title of “the next Silicon Valley,” it seems that employees and investors still have their eyes firmly set north up the state. It’s not easy when entrepreneurs like Ryan need to relocate to keep their dream alive. In these cases, time really is money and a quick sale can make all the difference for a young company that needs new life as soon as possible.
San Diego Can be a Struggle for Startups
San Diego has no shortage of startups. In fact, some founders are even moving operations out of the San Francisco Bay Area and all the way down the coast. This is typically easier for a company that is already well established and flourishing. For those thinking of creating a new startup, or those who may have one already in its beginning stages, there are a few hurdles to be aware of in choosing San Diego as your home base:
- A lack of talent. San Diego benefits from some fantastic universities. But all too often, as soon as the talented twenty-somethings graduate, they’re off up the Pacific Coast Highway to Los Angeles or San Francisco. The reason? As many innovative startups as there are in San Diego, the cold, hard truth is that there are so many more opportunities in the north of the state. AngelList cites jobs at 168 startups in San Diego compared with jobs at 3116 startups in Silicon Valley. If you were starting your career, where would you go?
- A lack of investors. It’s not just employees who turn their nose up at San Diego. Investors very rarely stray outside of the Silicon bubble. In 2015, for instance, $27.8 billion was invested into the valley. Comparatively, San Diego startups received just $1.3 billion. And almost half of that amount went to biotech companies. Unfortunately, if your startup is in software, finance or just about any other sector, you’re going to struggle to catch the eye of one of an investment firm.
- A lack of experience. According to Doug Hecht, the founder of Lymber, there aren’t enough experienced founders in the area either. There’s no one (yet) who has sold a company and can start something new with confidence or impart their experiences on San Diego’s new founders as a mentor. In short, there’s a lack of pedigree.
So Then, Where to Next?
If you want your startup to flourish, you’re probably going to want to set up shop in the Bay Area. But the bay area is pretty big. Scratch that, it’s really big. But you don’t even have to live in it to work there. That means you have pretty much all of Santa Clara County to choose from. So, which city are you heading to next?
- San Jose – “The capital of Silicon Valley,” San Jose is a popular choice for those looking to move to the Bay Area but still want live in a big city environment. The city has something for everyone. Good schools for families, amazing outdoor recreation for adventurers, and great restaurants for food buffs. To top it all off, it’s only a short commute to most of Silicon Valley’s startup hotspots.
- Palo Alto – This city is the focal point for Silicon Valley. This is another great option for families, with the city boasting an excellent education system (Stanford University sits beside it), and an abundance of family housing—of course, you’ll be paying upwards of $900,00 to buy one. What makes it great for families also means it tends not to be so favorable with generation Y. The city is quiet and largely residential. Don’t expect a lot of nightlife.
- Mountain View – As you’d expect from the home of Google, Mountain View is a techie’s dream. The city has free wifi thanks to the internet behemoth, as well as an array of restaurants, retail stores, cafes, and bars. Twenty-somethings are going to feel more at home here than in Palo Alto, but that doesn’t mean families are any less welcome.
Selling Fast to Save Your Startup
One thing you don’t have when you’re the founder of a startup is the luxury of time. If you have to stop growing your company for even just a few weeks, it could mean permanent damage. It’s a bit of a catch 22, then, when moving your company north in order to save it also means waiting for weeks or months to sell your home in San Diego on the traditional market.
If you find yourself needing to leave fast for the sake of your business, you can consider selling direct. We will offer a cash price on your home and let you choose the date on which the transaction is complete. We’ve done this in as fast as 48 hours. We can take your home off your hands in a few days, instead of a few weeks. Speak to one of our consultants today to find out how you can secure a fast, fair offer on your property. It could mean the difference between filing for bankruptcy or filing for an IPO.