The bay area startup scene isn’t what it used to be -- here are the up-and-comers

Happy Monday! HBO's Silicon Valley was co-created by the same guy who did Beavis and Butt-Head and King of the Hill.
the big one
Venture investment in major metros (2017) via Bloomberg
Despite being the OG cradle of innovation, Silicon Valley’s startup scene is beginning to sour.

We’ve all seen that engineer’s Medium post about why she’s leaving the bay (plus the amazing satire of that post) and there’s evidence to show she’s not alone.

44% of Bay Area residents say they are likely to move in the next few years, according to a new poll published yesterday (6% have definite plans to move). 

Aside from fleeing talent, the cost of doing business in San Francisco is the highest in North America -- it costs nearly 50% more to run a startup in SF than Atlanta.

Venture firms are starting to realize that they can get more bang for their buck by investing outside the peninsula. 

So if not Silicon Valley, then where?
The list toppers are pretty much what you’d expect. New York is the capital of the finance, fashion, and publishing worlds and Boston is known for its prestigious universities (20% of Bostonians are university students) -- although Southern California actually graduates the most tech-related PhDs and has the most research universities in the country. 

But if we take a look at the recent movers and shakers there's also been explosive growth in Texas and Colorado.

King of the Silicon Hills
Austin is one of the fastest growing tech ecosystems in the country  -- the city’s startups raised $240 million just this January. And earlier this month two new Austin-based venture capital firms announced they were raising $100 million funds to invest locally. 

Mile High Club
Investors shelled out nearly $1.5 billion for Colorado startups in 2018. Aside from VC attention, big tech players Google and Amazon have recently expanded offices in Boulder. What’s more, Boulder is home to Techstars, one of the world’s largest startup accelerators.

TL;DR The startup landscape is evolving rapidly and there’s a growing urgency among investors to reach burgeoning tech scenes all over the country. Expect to see capital moving out of Silicon Valley to more affordable tech talent hubs over the coming years.
the almost big ones

Zoom is an anomaly among 2019 IPOs

With only $145 million in funding, ZOOM (founded in 2011) may look like a small fish in a big pond of upcoming IPOs from the likes of Uber ($24.2 billion), Lyft ($4.9 billion), and Pinterest ($1.5 billion). 

However, Zoom does one thing that none of these other companies have managed to pull off: turn a profit. The video conferencing company took home $269.5 million in gross profit on $330 million in revenue in the last fiscal year -- that’s a favorable ratio if we’ve ever seen one.

Over the last three years alone, Zoom’s revenue has at least doubled every year:
One other interesting note from the filing, Zoom’s CEO still owns about 22% of the company. Cha-ching!

LA DoT wants your scooter data

The Los Angeles Department of Transportation is asking scooter companies (like Bird and Lime) to hand over the real-time location data of their fleets to ensure the companies are complying with rules (fleet size, speed limits, no-go zones, etc.) established back in September.

According to Motherboard, Bird and Lime were quick to support the LADOT requests, while Uber (which operate JUMP scooters in LA) came out guns blazing against sharing their rider data. Since then, the debate has become a big story in the ongoing "should tech companies share our data with the government" conversation.

The main concerns of Uber, along with privacy advocacy groups, is that the data requested is too granular (allowing for the tracking of individuals in real time) and the city may not be able to protect it. 
on the hunt

Looking for a new gig?

It's Monday. Which means if you're not where you want to be you're feeling it a little extra today.

Here are some cool companies looking to expand:

Must love dogs
Vetcove makes it easier and cheaper for veterinary practices of all sizes to stay stocked up on the essentials (like doggie band-aids I guess). They're based in NYC, backed by Techstars, and hiring across departments and experience levels.
Yeah, I love dogs

Don't miss the Goat
Goat is hypebeast heaven. Not only does the company provide a platform for expert-verified resale sneakers, Goat also just acquired super-cool retailer Flight Club and recently snagged a big investment from Foot Locker. They're based in LA and have a ton of openings.
Sneakerheads only

Gloss boss
In case you missed it, last week Glossier became a billion dollar company and raised some serious cash. The female-run beauty empire slings bomb balms from NYC and they're hiring like crazy.
Into the Gloss
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Zac Cherin
The idea guy
Brendan Uyeshiro
Nitpicker in chief

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Brendan Uyeshiro