The drop in Bay Area startup funding showed no let-up at the end of 2016.
Data provided by PitchBook shows the number of deals and dollars invested in them dropped by about a third in the region, compared to levels at the end of 2015. The 365 venture deals reported in Q4 is the lowest since the fourth quarter of 2010 and the amount invested is the lowest since the third quarter of 2013.
Top 10 cities by dollars:
San Francisco— $2.27 billion, down 45.3 percent.
Redwood City— $436.6 million, up 40 percent.
Palo Alto— $333.1 million, up 26 percent.
San Mateo— $193.3 million, down 51 percent.
Emeryville— $180.4 million, up 218 percent.
Menlo Park— $161.5 million, up 117 percent.
Mountain View— $152 million, down 71 percent.
South San Francisco— $133.7 million, up 8 percent.
Tech industry is going down. Startups feel the pinch first. Since majority of the startups are in SF, that exaplains the weak rental market in SF.
It’s surprising to see the low startup activity in south day. Seems that SF is the center, San Mateo/RWC and Emeryville/Oakland/barkeley are second tier. SJ is the 3rd tier.
Silicon Valley is going down. SF/SanMateo/Oakland is the future.
I am surprised by Fremont in the start up list. Not complaining, but I didn’t realize there are many start up there. Unless company address is at People’s home?
Next time before you say tech will move out of Bay Area because it’s too expensive here, keep these 2 numbers in mind. Within Bay Area, money and people are flowing to the MOST expensive bit.
Pick a most expensive city to start an new company is not the way to go. What is the success rate of a start up that has a good product and go public?
You mean the days of working out a garage is not popular anymore. Sometime ago I visited a new startup. They tried something like a ipad without internet. It was in MV between two real auto garages not far from Castro. They had a few products and was bought out.
It has higher median income too.