Six Main Reasons Why Startups are Setting Up Shop in SF


While Silicon Valley is the expected choice of most startups, many of them have chosen to set up shop in San Francisco in the past years. The city may not be that big, but it has a designated area or street for startups. This includes companies like Uber, AirBnB, and Pinterest. All these startups are found along South of Market Street (SOMA). So, why are they there and not in Silicon Valley? Here are six possible reasons.

Reason 1: San Francisco is a Place of Diversity

The City of San Francisco is known as one of the most diverse not just in the United States, but in the world as well. You’ll find people of all color, religion, and background walking along the city’s streets. Startups see this as an advantage because it indicates the city’s openness to anything new or unique.

Reason 2: Because of Its Diverse Culture, San Francisco Strongly Supports Local Products

If you observe carefully, you’ll find that San Francisco residents prefer to patronize local brands more than internationally-acclaimed ones. They prefer local products over multinational brands. This sits well with startups because it means their products will thrive in the SF environment.

Reason 3: Because They Prefer Local, San Francisco Residents Strongly Support Startups

The San Francisco community is one that is always ready to help one of its own, including startups. So, it is normal to see the residents helping out a smaller or newer brand more than more established brands.

Reason 4: The Weather is Good in San Francisco

One of the biggest reasons why startups are setting up shop in San Francisco is its overall good weather. In the summertime, it may be dry, but the weather is usually cooler than in some other parts of California, and even than in some states. Because of its good weather, the atmosphere in San Francisco is always vibrant; full of life. This is something that can benefit a lot of startups because there are more opportunities for them (and their customers) to show off their products/services.

Reason 5: The Startup Community in San Francisco is Growing

Startups want to be where the next action will be. At this point, things seem to be pointing to San Francisco. It may not be as popular as Silicon Valley, but SF’s SOMA is slowly gaining respect, in particular among the tech community.

Reason 6: All the Giants are in Silicon Valley

All the established tech giants, all the big companies are in Silicon Valley. So, if you are a startup, why will you choose to go there when there is a tendency that you will be eaten up by the fierce competition? Starting in fresh grounds is the best way to go for startups.