Over the past few years, there’s been a lot of debate about whether San Francisco’s tech scene is in decline.
But here’s the thing: the data tells a completely different story. Sure, we’ve seen headlines about major tech companies moving their headquarters to places like Austin and Miami,
but the SF Bay Area continues to lead in one key area—early-stage funding. And it’s not even close.

There are several reasons why SF remains a dominant force in the startup world:

1. Talent Pool: San Francisco has an unmatched concentration of tech talent.
  The city is home to 49% of all big tech engineers in the U.S. and 27% of startup engineers.
  These numbers speak volumes. For founders looking to hire the best engineers, SF is still the place to be.

2. VC Connections: Venture capitalists are a significant part of the ecosystem,
  and the relationships between founders and investors are much stronger in SF than in other cities.
  Startups here often have easier access to funding and mentorship from experienced investors.

3. Startup Culture: There’s a unique energy in the Bay Area that’s hard to replicate elsewhere.

   It’s not just about raising funds—it’s about being part of a community that’s laser-focused on innovation and growth.
  You’re surrounded by other founders, engineers, and investors who understand the hustle,
  and that kind of support can be invaluable.

One of the most exciting things happening in SF right now is the boom in artificial intelligence (AI) startups.
In fact, the city’s share of top VC Seed and Series A rounds for AI companies is an incredible 38%.
That’s a massive jump and is one of the key drivers behind SF’s sustained leadership in early-stage funding.

AI is the new frontier for tech, and San Francisco has positioned itself as the go-to hub for companies in this space.
With the rise of AI-focused community events, it’s clear that SF is leading this charge.

Other cities are undoubtedly growing their tech scenes. For example, New York City and Austin have seen significant growth in startup headcount since 2019, with increases of over 40%.
However, these cities still trail far behind SF when it comes to the sheer volume of early-stage funding.

The future looks bright for San Francisco, particularly in tech. While some people may still be skeptical, the numbers don’t lie.
San Francisco’s leadership in early-stage funding rounds, combined with its position as the epicenter of AI innovation, shows that SF isn’t going anywhere.
In fact, it may be stronger than ever.

So, while there are certainly challenges—housing costs, civic issues, and competition from other cities—San Francisco remains the best place in the world to build a tech company.

Read the article: “Surprising Growth of San Francisco Tech”