Over the past few months, several huge tech companies have jumped the Silicon Valley ship.
Oracle relocated to Austin, Hewlett Packard to Houston, and Palantir to Denver.
And just before that, Elon Musk announced his exodus from California, vocal about his dissatisfaction with the state’s direction when it comes to tech and entrepreneurship.
So, does this mark the beginning of the end for Silicon Valley?
While some big players have moved their headquarters out of the Bay Area, San Francisco’s magnetic force on innovation has yet to fade.
Big Tech is just now headed for a border-free ecosystem, but I’m going to show you how angel investors and a new class of entrepreneurs are already miles ahead of this.
When startups can raise, and investors can invest—regardless of location—the entire system thrives.
The move away from The Bay is mostly attributed to its steep taxes and incredibly high cost of living.
These issues have slowly worsened in the tech capital of the world, causing businesses to pack up and move out.
Meanwhile, other cities have made it their duty to welcome the Cali transplants.
It isn’t just Austin and Denver either. Miami, Chicago, and Boston are blossoming in this new environment. Dozens of new hubs of entrepreneurialism and investing have popped up.
And another angle on this is story remote working.
The remote-working-necessities of 2020 set off lightbulbs in executives’ heads. Workers were sent home, people adjusted, and now they won’t be coming back. They can work “in” San Francisco “from” their house in the suburbs or cabin in the countryside.
However, the biggest change in startups and investing isn’t a move from one city to the other, and it isn’t remote working.
For entrepreneurs and investors, the big news is that tech hubs no longer act as entrepreneurial gatekeepers.
Startups don’t need to be region-locked when it comes to funding, and the institutional investor isn’t their only option.
They can now get funding—regardless of their location—from everyday investors across the country.
With Regulation Crowdfunding, investors and founders now have access to one another regardless of their geographic locations.
As investors, we are no longer limited to the startups in our local hub—or if we don’t live near one—cut off from private investing altogether.
At the same time, startups in any small town can now turn to online communities for funding.
It’s not just that big companies are looking for a change of scenery, it’s that new companies are realizing they can set their roots anywhere and investors will come to them.
That’s the magic of Regulation Crowdfunding.
Now anyone can be an angel investor. This new kind of investing has smashed the doors down.
No longer is angel investing only for the ultra-wealthy, and no longer does a startup need to be in a particular city to be successful.
A handful of Boston VCs no longer control the Boston startup scene. Funding is leaking in from investors across the nation via online platforms.
And the budding SaaS company in Boise is no longer hamstrung by the lack of tech investors within a 50-mile radius. The founders can put their idea out to the world and investors will come to them.
Best of all, the new SEC regulations allow startups to raise up to $5 million through Regulation Crowdfunding. Companies that wouldn’t have taken this route for the previous $1 million limit are now eagerly joining in.
For them, Reg CF is a quick, easy, and borderless means of funding.
This new culture of investing and entrepreneurship is setting the stage for next-generation, borderless companies.
Now, the hubs, borders, and limitations are gone.