United States

Silicon Valley - Bay Area #1

"The global pandemic led to new tech and innovation hubs, and the new paradigm of remote and hybrid companies is even further enforcing the distribution of Silicon Valley's ethos into a truly global phenomenon. This enables a much broader set of people to connect with the unique essence of startup creation, bringing innovation to the edges of our human network."

Na'ama Moran
Co-founder and CEO, Cheetah Technologies
#1 Global Ecosystem in Talent & Experience
#1 Global Ecosystem in Funding
#1 Global Ecosystem in Performance

Highlights

Despite years of hand-wringing about costs and efforts to build “the next Silicon Valley” elsewhere, Silicon Valley continues its reign as the world’s pre-eminent startup ecosystem. A much discussed flight of tech workers during the COVID-19 pandemic is not reflected in the numbers. In 2022, the number of residents employed in tech in the region actually rose from 25% to 29%, according to the 2022 Silicon Valley Index. Silicon Valley remained the top ecosystem for venture investing, with $105 billion in capital flowing to the area’s startups in 2021, double the 2020 total. Thanks to Stanford University and the region’s other top educational institutions, the ecosystem is well supplied with fresh talent.


Silicon Valley also continues to offer some of the world’s best networking opportunities and hosts a huge array of startup-focused gatherings and events, including TECHSPO Silicon Valley, Palo Alto founders meetup 106 Miles, and Founders Summit 2022. Venture Capital World Summit will be held in July 2022. The Women of Silicon Valley conference is set to bring together more than 2,700 tech industry professionals in June, and BIOMEDevice Silicon Valley 2022 will gather Life Sciences innovators in November. TiE Silicon Valley is organizing TiEcon 2022 for 50,000 global attendees in May.


Silicon Valley produces a steady stream of huge funding deals. Recent rounds include online learning platform Course Hero’s $380 million Series C in December 2021, customer experience assurance platform $350 million private equity round in January 2022, and Web3 startup Aptos’ $200 million seed round in March 2022.

Ecosystem by the Numbers

TOTAL EARLY STAGE FUNDING
(2019H2-2021)
$25 bn
GLOBAL AVG.
$687 m
ECOSYSTEM VALUE
(2019H2-2021)
$2 tn
GLOBAL AVG.
$28.6 bn
MEDIAN SEED ROUND (2019H2-2021)
$1.5 m
GLOBAL AVG.
$671 k
MEDIAN SERIES A ROUND (2019H2-2021)
$11 m
GLOBAL AVG.
$4.7 m
SOFT. ENGINEER SALARY (2021)
$119 k
GLOBAL AVG.
$46 k
812 bn
GLOBAL AVG.
11.3 bn
2302
GLOBAL AVG.
101
Amount ($)
Count (#)

Exits

(2017-2021)
EARLY-STAGE FUNDING GROWTH TIER (2018/19 VS. 2020/21)
5
Calculated on a scale of
1 (lowest) to 10 (highest)
TOTAL VC FUNDING (2017-2021)
$247 bn
GLOBAL AVG.
$4.5 bn
TIME TO EXIT (2017-2021)
7.6 years
GLOBAL AVG.
9.4 years

Sub-Sector Strengths

AI, Big Data & Analytics

The AI Accelerator Summit brings together leaders in AI hardware and architecture from large organizations and startups in Silicon Valley. The world’s leading AI and Big Data event, AI & Big Data Expo 2022, will take place in Santa Clara. SambaNova Systems, which builds advanced software, hardware, and services to run AI applications, raised a $676 million Series D in April 2021, raising its valuation to more than $5 billion. AI-powered customer service platform Uniphore raised a $400 million Series E in February 2022.

Fintech

Fintech Mercury provides venture debt to early-stage startups, with an aim of lending out $200 million in 2022 and up to $1 billion the following year. Mercury is offering 25% to 50% of a startup’s equity round in debt. All-in-one payment solution for insurance Ascend raised both a $250 million debt financing round and a $30 million Series A in January 2022. Digital-asset trading platform FalconX raised a $210 million Series C in August 2021.

Life Sciences

After a name change and shift from oncology to immunology, AltruBio relaunched with a $63 million Series A in April 2021. Gene-editing company Graphite Bio One completed a $230 million IPO on the Nasdaq in June 2021.

Reasons to Move Your Startup to Silicon Valley - Bay Area

Easy Financing Opportunities

Silicon Valley may be a legendarily high-cost ecosystem, requiring large amounts of capital to get a startup off the ground, but it is also the worldwide epicenter of startup financing. The area also boasts the highest concentration of billionaires per capita in the world, which means startups have access to a huge range of experienced angel investors willing to bet on unique and innovative ideas.

Ideal Startup Environment

Silicon Valley provides entrepreneurs with everything necessary to found a startup, including world-leading venture capital, talent, and networking opportunities. Startups can draw from the area’s deep pool of talented engineers, marketers, designers, and executives. The area is also home to many world-leading tech behemoths, offering growing companies opportunities for partnerships and growth.

Legal Support

The world’s #1 startup hub offers efficient laws, policies, and regulations to safeguard business interests and IP. These act as a necessary shield for tech businesses, especially the ones that are starting small.

Selected Startup Organizations

Startup Genome
Partners

Engine
GSV
Manos Accelerator
Parisoma
Rocketspace

Get connected

Are you interested in diving deeper into this ecosystem? Drop us a message. Our Ambassadors and Partners can plug you in.