There’s no way you would talk about tech innovations without mentioning the astonishing economic ecosystem of SILICON VALLEY. The tech community, which has a rich history of more than 50 years behind it, has literally become a success hub for tech companies.
But what exactly makes this place so special that it’s the headquarter of giants like Google, Netflix and Apple?
Why is it home to over 2,000 tech companies and a dream-come-true for emerging businesses?
Your answers are below you’d be surprised as to how basic they are.
CLUSTER OF SAMENESS
Related industries clustered in a particular location has always been a winning strategy, and silicon valley has ridden this horse quite well.
The close proximity allows for mutual benefits, variety, a stronger voice, and a resounding collective effect. For example, it would be easier for the community to coerce the government to take certain actions in their favor like tax deregulation, unlike a couple companies miles apart lobbying individually. When the Valley speaks, the mountain listens.
FUNDING
After launching out, the major goal of any startup is rapid expansion but how would that be possible without funding?
Funding is so important that companies sometimes pitch their tents in locations where it’ll be easier to get VC funds. Now tell me, where better than the San Francisco bay area?
The quality, abundance of talent, and density of potential in Silicon Valley makes it a perfect go-to for VCs.
FAVOURABLE LOCAL POLICIES.
Local policies go a long way in either supporting the growth or stifling the operations of businesses. The former is one of the many things enjoyed in Silicon Valley. The flexible structure of the US federal Government allows state policies to differ significantly from one another.
Profitable laws, policies, and legislation that shield business interests, trade secrets, and intellectual properties are in place. When a regulatory environment such as this exists, it’s a no brainer that SV has a track record of producing and sustaining startups unlike anywhere else.
TRANSFER OF VALUE
Having your company start out of the Silicon Valley is in itself a bragging right. More importantly, it has a way of influencing your valuation and market perception. Being located within a camp of innovative and high-value companies can’t but place you on a fast track to being highly profitable. The valley has it’s pressures, but there’s no denying that it offers a very rich transfer of sentimental – and sometimes – actual value.
CONCLUSION
For years now, Silicon Valley has been an epicenter of tech success based on the startups it sustains, the empires it houses, and the reputation it has built over the years. In no time soon will the valley fall down the perking order – and rightly so.
Do you know of any important reason we left out?
Have you been privileged to be a part of something in the valley?
Do well to share below.