United States
San Diego
"San Diego has appeared as a hotbed for innovation, attracting entrepreneurs and investors from various industries. The region boasts a rich ecosystem, encompassing renowned research institutions, a skilled talent pool, and a supportive entrepreneurial community."
Highlights
San Diego’s rapidly growing tech startup sector is bolstered by the availability of top tech talent from the area’s many excellent universities and military bases. A high quality of life and business-friendly environment have helped attract founders and talent, with over 100 tech companies calling the city home. San Diego secured 240 deals in 2023 for a total of $4.1 billion in investments.
San Diego has 38 accelerators and incubators, which have a combined portfolio of 786 companies helping the ecosystem grow. Support organizations include Connect San Diego, which helps innovators and entrepreneurs in southern California by providing access to investors, mentors, and education. San Diego Entrepreneurs Exchange is a nonprofit run by and for entrepreneurs in the San Diego area with a focus on Biotech, Life Sciences, Cleantech, and alternative energy. Techstars San Diego supports the next generation of female scientists, engineers, and entrepreneurs.
The city also has numerous resources for startups and founders, including the San Diego Regional Economic Development Corporation’s Inclusive Growth Initiative, aimed at creating 50,000 new quality jobs in small businesses by 2030. TECHSPO San Diego took place in May 2024. Edtech event ASU + GSV Summit was held in February 2024 and Tech Up For Women West Coast took place in March 2024.
Biotech startup Rakuten Medical has raised $723.4 million over 10 rounds. Data management platform Measurabl has raised $172.6 million in funding over eight rounds, including a May 2023 Series D. E-waste recycling company ecoATM has raised $397.9 million over nine rounds.
Ecosystem by the Numbers
Sub-Sector Strengths
Cleantech
San Diego’s Cleantech sector has an economic impact of $8.8 billion. Cleantech San Diego, a supporting organization of the Cleantech Forum North America, connects startups with investors and corporate partners. The Southern California Energy Innovation Network (SCEIN) has served 73 Cleantech startups with 469 patents approved and $418 million raised. 86% of SCEIN companies have female, minority, or veteran representation on their C-Suite leadership teams.
Life Sciences
San Diego is ranked the fifth strongest Life Sciences labor market for research talent in the U.S., with the highest density of biochemists, biophysicists, and other biological scientists and the second highest density of chemists in 2023. San Diego startups raised $700 million in venture capital and seed funding in Q4 2023. The San Diego Development Services Department launched the Life Science Industry Pilot Program in March 2023 to provide dedicated resources for the Life Sciences industry to expand and succeed by speeding up the building permit process.
AI, Big Data & Analytics
The Institute for Emerging CORE Methods in Data Science at the University of California San Diego fosters outreach and broadens diverse student participation in data science. The Emerging Topics in Artificial Intelligence 2024 conference will be held in August. In April, the Artificial Intelligence for Early Drug Discovery conference gathered experts in the field. Intelligent systems startup ShieldAI raised $200 million in a December 2023 round. AI drug discovery startup Iambic Therapeutics raised $100 million in an October 2023 Series B round.
Reasons to Move Your Startup to San Diego
Business-Friendly Environment
In November 2023, San Diego’s Chula Vista launched an initiative whereby entrepreneurs can coordinate with economic development team members to assist in opening a business, obtaining a business license and permits, or navigating the development process. The City's Economic Development Department has a proactive Business Expansion, Attraction and Retention Division that works directly with businesses in targeted industries, providing assistance and incentives.
Quality of Life
San Diego was named one of the best places to live in the U.S. in a 2023 Money ranking, citing the city’s number of economic opportunities, quality of life, overall diversity, and future trajectory. Job growth for the next 10 years is estimated to outpace the rest of the country. San Diego’s Climate Action Plan sets a goal of net-zero greenhouse gas emissions by 2035.
Tax Incentives
City of San Diego tax incentives include the Business Cooperation Program, which can provide tax rebates when a business implements new practices for sales, purchasing, or tax accounting. The New Employment Credit allows San Diego businesses to capture up to $56,000 in tax credits per qualified employee for hiring recently discharged military veterans, ex-offenders, long-term unemployed persons, and public assistance recipients.
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