Tech Leaders Fled San Francisco During the Pandemic. Now, They're Coming Back.
Founders and investors who moved to Miami and elsewhere are returning to a boom in AI and an abundance of tech talent. From a report: In 2020, venture capitalist Keith Rabois urged startup founders to join him in ditching San Francisco for Miami, praising the city's safety, lower taxes and tech-friendly mayor. The self-proclaimed contrarian investor, who made a fortune backing companies such as Airbnb and DoorDash, once tweeted that San Francisco was "miserable on every dimension." The hard pivot to Miami has faltered. Several of the startups that Rabois backed are relocating or opening offices elsewhere to better attract engineering talent. Late last year, he was pushed out of his old venture firm, Founders Fund, after falling out with some colleagues. Now, he plans to spend one week a month in San Francisco for a new employer, Khosla Ventures, and is busy renovating a house there. During the pandemic, scores of Silicon Valley investors and executives such as Rabois decamped to sunnier American cities, criticizing San Francisco's dysfunctional governance and high cost of living. Tech-firm founders touted their success at raising money outside the Bay Area and encouraged their employees to embrace remote work. Four years later, that bet hasn't really worked out. San Francisco is once again experiencing a tech revival. Entrepreneurs and investors are flocking back to the city, which is undergoing a boom in artificial intelligence. Silicon Valley leaders are getting involved in local politics, flooding city ballot measures and campaigns with tech money to make the city safer for families and businesses. Investors are also pushing startups to return to the Bay Area and bring their employees back into the office. San Francisco has largely weathered the broader crunch in startup funding. Investment in Bay Area startups dropped 12% to $63.4 billion last year. By contrast, funding volumes for Austin, Texas, and Los Angeles, two smaller tech hubs, dropped 27% and 42%, respectively. In Miami, venture investment plunged 70% to just $2 billion last year.
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