Why more and more people leave Silicon Valley

Фото: Depositphotos

The boom of start-ups in recent years is more and more confidently called the new “dot-com boom,” hinting at the first crisis of the high-tech industry that happened in 2000. More and more people are leaving Silicon Valley - the mainstay of technology entrepreneurship. Magazine Vanity Fair understood in detail this issue, writes the Internet portal AIN.

Over the past couple of years, we have witnessed a boom in entrepreneurial utopia in Silicon Valley. Teenagers with ambitious ideas rushed into San Francisco County, where they received hundreds of millions of dollars from zealous investors who were desperately trying to invest in a new Facebook or Uber. But there are problems in paradise too. Volumes of venture financing are declining. Startups are raising downraund and selling at a lower cost. Investor confidence seems to be undermined. Megaraund go into oblivion, and companies begin to lay off employees.

With the 2.0 dot-com boom approaching, the number of people leaving the Valley begins to exceed the number of people coming to it. According to Exploration The Silicon Valley Competitiveness and Innovation Project, California’s so-called “technology corridor” in 2015, lost more than 7500 residents in favor of other US regions. For the first time in 4, more people left the center of the IT industry than settled.

The loss of Silicon Valley residents is of fundamental importance, since every fourth Californian works in the technological sphere, the “innovation industry” - for example, software development or IT services. For the Valley, access to workers in these areas is critical, but residents, according to the survey, are moving to cheaper and technology-friendly cities, like Seattle or Austin.

There are several reasons for the outflow of people. One of the main ones is the cost of living in Silicon Valley. Renting a two-bedroom apartment in San Francisco is more expensive than anywhere else in the US - $ 4200 per month. The average cost of a house in the Valley in August 2015 was $ 870 000.

The influx of people and companies who settled in the Valley in recent years has led to an increase in traffic jams. The average resident of the Silicon Valley suburbs in the 2014 year spent in traffic 67 hours a year - by 13,6% more than in the 2010 year.

However, residents of San Francisco County who are not involved in the technology industry will not feel the slump soon. There are rather tense relations between representatives of the technology and non-technology segment in San Francisco. The tenants are afraid that they can be evicted at any time, or they will no longer be able to pull the rent cost, while the commuter trains are completely clogged. Aaron Peskin, a member of the supervisory board of San Francisco, said: “People want to get some rest from the technological economy - this has become almost a pervasive attitude. It’s like waiting for the wind from the sea on a hot day. ”

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