Looking for the best place to initiate, kickstart, and scale your new business? Wondering when the dwindling Californian economic clouds will settle? Well, the wait is finally over as Austin Texas has become the frontline leader and the most lucrative tech destination in the world to grow and expand your business.
In recent years, the Lone Star State has disrupted Silicon Valley’s tech monopoly, redundant practices, and complacent attitude to become the future of all tech innovation and startup economy. According to Fortune Magazine, “Texas now has the most Fortune 500 companies of any state”.
Furthermore, according to the Austin Chamber of Commerce Austin has recorded a “growth of 4.1%, in the 12 months ending in April, making it the seventh best performing among the top 50 metros”. Moreover, presently it leads as the biggest job market in the US, adding at least three hundred and fifty-five new residents every day.
Some Background:
To remove a common misconception, Austin from its very early days was a tech destination. Not the leading one or the most decorated one, but it had legacy companies in its roots from its very early days.
According to the New Yorker, Texas was the birthplace of several major tech start-ups. According to their correspondent Lawrence Wright and his collaboration with Dell, throughout the decades Austin has had at least one new unicorn within its developing landscape.
According to Dell besides its own considerable and monumental presence in the area that launched and played a major role in the personal computer revolution Texas had several preexisting giants within its midst.
In the sixties it had I.B.M. with Texas Instruments and Motorola joining in the seventies. And in 1986, “three years after M.C.C. set up in Austin, Sematech, another consortium created to boost semiconductor manufacturing, arrived, bringing along Robert Noyce, the visionary co-founder of Intel.”
The New Wave: The Final Frontier
But the new wave started during COVID-19 when companies started moving to leave their Northern Californian roots and started establishing their new headquarters in Texas.
Unicorns and industry leaders such as the likes of Tesla, Oracle, HP, Charles Schwab, and NRG Energy started relocating their headquarters to Texas because of the growing concerns over the Californian economic projections that dwindled and collapsed in the wake of the pandemic.
Silicon Valley & The Dwindling Prospects:
The Mecca and the beating heart of all tech startups for more than 100 years and the epicenter of modern tech research and innovation that changed the world for years to come, which gave us the internet, integrated circuits, the first personal computer, the first smartphone, laid the foundations of venture capital industry, and the S&P 500, and many other breathtaking technologies that we use to this very day.
However, as it happens with all good things. The sad reality is becoming a fact and with that, the boom, charm, and prospects of Silicon Valley are coming to an unceremonious end. Unless policymakers make drastic changes in state rules and regulations there is no turning back from the reality that other states are providing better services and opportunities to both new and existing businesses.
The leader among them is undoubtedly Austin, Texas. Still, wondering why tech giants are moving to Texas? The simple answer is enticing tax incentives, venture capital opportunities, and an ever-growing talent pool of skilled professionals.
However, holistically besides the dwindling market prospects of Northern California, there are several reasons why top companies are fleeing to the Lone Star State and why you should join the bandwagon. These include:
Low Cost of Business or Favorable Tax Policies:
The tax concessions and incentives will simply blow you away. Unlike California, Texas is one of only five states in the US that has zero business income taxes, personal income taxes, and sole proprietor fees.
Affordable Living & Working Costs:
As we are already aware of the pitfalls of the Californian housing market, the Austin housing market contrarily is relatively cheaper and offers a breath of fresh air with affordable living conditions to its residents.
Emerging Talent Pool:
As already mentioned Austin boasts the largest population growth among all metropolitans in the US. According to recent statistics, the decade ending 2020 saw a 33.0% increase in population which is twice then Texas itself.
With such astonishing population growth, a steady talent pool is readily available to both new and emerging companies.
The Land of Fast-Speed Internet:
If you are a tech entrepreneur looking for fast, reliable, and pocket-friendly internet options then Austin Texas is the place to be. A place that enjoys a variety of both legacy and emerging ISPs, Austin leaves it to you to choose the best internet partner that suits and meets your business needs.
The Verdict: Will there be a Silicon Valley 2.0?
The answer is no. Both areas are historically, geographically, industrially, and economically different. Moreover, Austin has a long way to go to reach the magnitude of Silicon Valley’s achievements, as becoming the new tech capital is one thing but becoming the birthplace of all things tech is a monumental legacy that cannot be easily replaced.
For this reason, one only has to wait to let the chapters unfold and history foretell whether it can match the legacy of Silicon Valley and become its new and better version.