tatianaSF.com

Category: Business & Entrepreneurship

  • For non-Americans: Unveiling the Mighty American Market – 7 steps. Why It’s Unmatched in Global Consumption

    For non-Americans: Unveiling the Mighty American Market – 7 steps. Why It’s Unmatched in Global Consumption

    Many non-Americans underestimate the significance of the American market, often comparing it to the rapidly growing Chinese economy in terms of GDP. However, the real value of the American market lies not just in its share of global GDP but in its unparalleled proportion of worldwide consumption.

    Dominance in Various Sectors

    Brokerage Services

    The United States accounts for approximately 50-60% of the clients of the world’s largest brokerage firms. Companies like Charles Schwab, Fidelity, Vanguard, and JP Morgan, each boasting around 50 million clients, illustrate the substantial role the U.S. plays in the global brokerage landscape.

    Advertising

    In 2024, the U.S. is projected to hold about 45% of the global advertising market by expenditure. This positions it as the largest advertising market globally, leading significantly in digital ads, television, and other media.

    Transportation

    The American market also plays a pivotal role in the logistics and transportation sector, holding about 25-30% of global revenue in freight and passenger transport. This is due to its extensive use of vehicles for freight, a well-developed network of roads, and a significant volume of passenger transport by cars and buses.

    Gaming Industry

    Regarding the gaming market, the U.S. claims approximately 30-35% of the global consumption in monetary terms. High income levels, advanced technological infrastructure, and the cultural significance of gaming in the country contribute to this dominance.

    Financial Services

    The U.S. market’s consumption of financial services is also noteworthy, making up about 35-40% of the global market. The high level of public engagement with banking services, investments, and insurance products underscores the dominance of the U.S. financial market.

    Telecommunications

    In telecommunications, the U.S. accounts for about 20-25% of global consumption, including mobile services, broadband, and other communication services, highlighting its significance in the sector.

    Defense and Pharmaceuticals

    Furthermore, the U.S. comprises roughly 35-40% of global expenditure on military hardware, including significant domestic purchases and international military contracts, making it the largest market in the defense industry. Lastly, about 45-50% of global pharmaceutical consumption by value happens in the U.S., with high spending on drugs, large sales volumes, and the extensive use of innovative medications.

    Conclusion

    Despite ongoing predictions of the dollar’s demise, the U.S. economy continues to thrive, supported by its status as the reserve currency, substantial government debt and budget deficits, and successful Treasury sales. The dollar remains the strongest global currency, demonstrating the enduring strength and influence of the American market.

    PDF The Grand Chessboard – CIA

  • The Alarming Drop in Chinese Startups

    The Alarming Drop in Chinese Startups

    The Surprising Shift in China’s Private Sector

    For years, China’s private sector was a vibrant landscape filled with innovation, investment, and opportunity. At its peak, more than 50,000 companies were being launched each year, drawing in both domestic and overseas venture capital (VC). But as of today, this golden era has come to a screeching halt. The latest data shows fewer than 10,000 companies founded, a stark contrast to the booming numbers we saw just a few years ago.

    From 50,000 to 1,000: What Happened?

    It’s hard not to notice the sharp decline in the number of startups in China. In 2018, we witnessed the highest point of the startup ecosystem with over 50,000 new businesses emerging. Now, as we approach 2024, that number has dropped drastically. The reasons behind this decline are complex, but one of the major factors is fear.

    Why Fear is Driving Innovation to a Standstill

    In today’s China, investors and entrepreneurs face a unique challenge: government scrutiny. Venture capital firms are now accountable to government entities, having to explain why their investments didn’t yield the expected returns. And it’s not just about disappointing the government; there’s the very real fear of punishment. Investors who fail to bring in the desired returns risk “disappearing” or worse, being imprisoned.

    The stakes are so high that many VCs are choosing to walk away rather than risk their personal freedom over a poor financial outcome. When fear controls investment, it’s no surprise that fewer companies are being founded. Entrepreneurs are avoiding the market, and VC firms are more reluctant to take chances. After all, how can innovation thrive in a climate where failure could cost you everything?

    The Decline in VC Fundraising

    Another clear indicator of China’s struggling private sector is the decline in both dollar-denominated and RMB-denominated funds. As seen in recent data, there has been a significant drop in fundraising since 2021, with RMB-denominated funds plummeting almost to zero. This is an alarming trend. Without proper funding, startups simply cannot survive.

    Foreign investments, in particular, have slowed down to a trickle. The uncertainty surrounding China’s economic policies, combined with the aforementioned fears, have caused a major hesitation among international investors. The few who do continue to invest in China are doing so cautiously, focusing on safer, less innovative ventures.

    A Grim Future for China’s Private Sector?

    As we move into 2024, it’s clear that China’s once-booming private sector is under threat. With the number of startups shrinking and venture capital drying up, the future of innovation in the country looks bleak. The entrepreneurial spirit that once drove China’s economic growth has been stifled by fear and governmental control.

    This shift is not just worrying for the Chinese economy but for global markets as well. China has long been a key player in the world of startups, and its decline could have far-reaching effects on industries worldwide.

    Can Things Turn Around?

    There’s no doubt that the Chinese government has the power to change this course. By loosening its grip on the private sector and allowing investors more freedom to take risks, the startup ecosystem could once again flourish. However, without these changes, it’s hard to imagine a scenario where China’s entrepreneurial spirit makes a full recovery.

    Until then, the fear of failure – not just financial, but personal – will continue to cast a long shadow over China’s once-promising private sector.

    Read the article: “The Surprising Rise of UnionPay in Global Payments”

  • The Surprising Rise of UnionPay in Global Payments

    The Surprising Rise of UnionPay in Global Payments

    UnionPay’s Growing Presence

    For many years, the global payment market has been dominated by two major players—Visa and Mastercard. They have established a duopoly, comfortably reigning over international transactions. However, things are changing rapidly with the aggressive rise of a third contender: UnionPay, the Chinese payment system. Last year alone, UnionPay processed an impressive 228 billion transactions worldwide, which has pushed it to second place in global payment systems. Interestingly, it even surpassed Visa and Mastercard in terms of total payment volume.

    UnionPay’s Stronghold in China

    This growth isn’t surprising, considering UnionPay’s monopoly over the enormous Chinese market. China’s population and economic influence provide a solid foundation for UnionPay to thrive. The fact that it dominates China’s domestic market explains its massive transaction volume. When Visa and Mastercard pulled out of Russia, UnionPay stepped in, further extending its reach in markets that needed an alternative payment solution. But here’s where things get interesting: how dominant is UnionPay outside China?

    The Global Reality: Not as Strong as It Appears

    Despite the significant numbers, UnionPay’s global reach outside of China is surprisingly limited. According to the latest research by Datos Insights, if we exclude China from the picture, UnionPay accounts for less than 1% of the global transaction volume. This revelation highlights an important reality—UnionPay’s dominance is heavily reliant on its Chinese customer base. Its growth, while impressive on paper, doesn’t have the same impact when compared globally without China in the equation.

    So, while UnionPay has made a huge splash in specific markets, its influence outside China remains minimal. In many parts of the world, Visa and Mastercard continue to dominate, leaving UnionPay in the shadows.

    What Does This Mean for the Future of UnionPay?

    The future of UnionPay’s global expansion is still unclear. While the company has undoubtedly made strides in markets like Russia, its reliance on China makes its global growth fragile. Essentially, UnionPay is a giant, but one that’s standing on a single clay foot—a metaphor used to describe how it’s strong in one area but fragile elsewhere.

    UnionPay has potential, but whether it can truly challenge the likes of Visa and Mastercard on the global stage remains to be seen. Its current growth strategy will need to focus on gaining more traction outside of China to compete effectively in a global market where consumers still prefer the established giants.

    Key Takeaway: Always Look at the Bigger Picture

    At first glance, UnionPay’s dominance seems undeniable. The sheer volume of transactions can be impressive, but looking closely at the details changes the perspective. In this case, while UnionPay leads in China, it’s clear that its global influence is still limited. The key lesson here? Always dig deeper into the numbers and avoid being swayed by large figures without context.

  • Tech’s Resurgence in San Francisco: The Unexpected Comeback

    Tech’s Resurgence in San Francisco: The Unexpected Comeback

    Over the past few years, there has been much talk about the “death” of San Francisco’s tech scene. However, when you look at the data, it’s clear that tech never really left. Despite the pandemic-induced shifts in remote work and tech leaders moving to other cities like Austin or Miami, San Francisco has held strong as the leading hub for tech talent and innovation. According to the latest data, the SF Bay Area still houses 49% of big tech engineers in the U.S. and 27% of startup engineers.

    This resurgence in tech activity in the Bay Area started in 2022, after a gradual decline following the mid-2010s boom. Interestingly, the boom in AI and machine learning is now driving this comeback, making SF once again a central place for startups and tech engineers.

    The Startup Engine of the U.S.

    The numbers clearly show that SF is still the home of startup formation. Even though tech activity was becoming more geographically diverse in the 2010s, the recent AI boom has reversed that trend. More than half of all new startups in the prestigious Y Combinator accelerator are based in the SF Bay Area. This percentage is growing rapidly, signaling that SF is still a prime location for innovation and tech growth.

    It’s fascinating to see how SF continues to dominate in early-stage startup fundraising as well. A staggering 26% of all Seed and Series A rounds in the U.S. are secured by SF-based companies. And when it comes to AI funding, SF’s share grows even more to 38%. No other city comes close to these figures.

    The Pandemic Shift: SF’s Resilience

    During the pandemic, there was a lot of noise about people leaving SF, tech companies scaling down their presence, and other cities gaining momentum. The rise of remote work had many questioning the high cost of living in SF, and some tech leaders moved to cities like Miami and Austin. Elon Musk even moved Tesla’s headquarters to Austin, Texas.

    But the data shows a different story. While some tech workers did leave SF, the city still retains its place as the top destination for tech employees and founders. Despite the pandemic, the overall decline in SF-based tech workers has been minimal. SF is still the #1 city for tech engineers, and it’s still the primary hub for early-stage startups and venture capital.

    The AI Boom and San Francisco’s Future

    What’s driving this tech resurgence in SF? AI. The rise of artificial intelligence and machine learning is putting San Francisco back in the spotlight. SF’s share of AI engineers and funding is significantly higher than in any other U.S. city. As the epicenter of AI development, the Bay Area is once again attracting tech talent, venture capital, and new startups at an increasing rate.

    Even though other cities like New York and Austin have seen growth in their tech sectors, they are not catching up to SF. In fact, no other city is on a trajectory to close the gap anytime soon. SF’s regained momentum in tech—especially in AI—means that it is likely to stay ahead for years to come.

    San Francisco’s Unique Tech Culture

    What sets SF apart is its unique culture. In SF, you can’t walk down the street without hearing someone discussing their next startup idea or how they’re scaling a product. The city’s fixation on technology and innovation is what makes it a magnet for entrepreneurs and engineers alike. Despite its challenges, SF is still the best place to build a startup.

    In conclusion, while SF’s tech scene may have had a rough patch, it never truly fell off. It’s still the center of the tech universe, and its lead is growing, particularly in AI. For anyone serious about being part of the next wave of tech innovation, there’s no better place than San Francisco.

    Read the article: “Surprising Workplace Requests: Should Commute Time Be Considered Work?”

  • Surprising Workplace Requests: Should Commute Time Be Considered Work?

    Surprising Workplace Requests: Should Commute Time Be Considered Work?

    Should Commute Time Be Part of the Workday?

    In today’s fast-paced world, where many jobs are transitioning to remote or hybrid models, a new debate has surfaced: should companies count commute time as part of the workday? A recent discussion on social media has sparked a debate on whether employers should not only pay for transportation but also include the commute time in an employee’s paid working hours. As someone who frequently navigates the challenges of modern work environments, I found this topic both intriguing and thought-provoking.

    The Employee’s Perspective: A Justified Request?

    It all started when a worker voiced her frustration online, stating that if she was required to come to the office, her employer should cover her transportation expenses from door to door, including taxi costs. Not only that, but she also insisted that the time spent commuting should be considered part of her work hours. Furthermore, she proposed that the company should provide meals during office days.From an employee’s standpoint, this request makes sense. Commuting, especially in large cities, can take hours out of a worker’s day, leading to burnout and frustration. It’s only natural to wonder if this lost time should be compensated. After all, employees are already sacrificing their time and energy to physically be present at work. Shouldn’t this be recognized and rewarded?

    The Employer’s Response: Is It Too Much to Ask?

    On the flip side, some argue that this kind of request is simply unrealistic. Many employers would likely balk at the idea, thinking it’s too much to ask. As one commenter put it, ‘With demands like these, you’ll be sitting at home without a job.’ Employers may see it as an unreasonable demand, akin to asking for a luxury apartment within walking distance from the office or a personal office suite while others share open space.These types of requests are generally reserved for top-tier talent in competitive industries, where companies go the extra mile to attract and retain the best of the best. For the average worker, however, such benefits might seem out of reach.

    The Competitiveness Argument: Are Good Employees in Short Supply?

    Some believe that only the most highly skilled workers can make such demands. In a competitive job market, where qualified candidates are plentiful, employers have more power to dictate terms. However, this notion has also been challenged by those who argue that good talent is always in demand, and companies should be willing to meet the needs of their best employees.

    Is It Fair to Expect Employees to Relocate?

    Another interesting angle emerged in the debate, with one individual suggesting that employees who struggle with long commutes should simply move closer to the office. This, of course, was met with skepticism and humor. After all, would it make sense to uproot your life and move every time you switch jobs? The practicality of such a suggestion leaves much to be desired.

    Final Thoughts: Should Companies Compensate for Commutes?

    Ultimately, the question of whether companies should compensate for commuting costs and time depends on the nature of the work and the expectations set by both the employer and the employee. In roles where work can easily be done remotely, requiring office presence can feel unnecessary. In such cases, compensating for the inconvenience might seem reasonable.However, striking a balance between employee satisfaction and business practicality is key. Perhaps in the future, as the nature of work continues to evolve, we will see more companies offering flexible solutions that cater to both parties’ needs.

    Read the article: “How Replit Agent is Transforming the Role of Developers in the Tech Industry”

    Read additional resources

  • The Incredible Dominance of SF in Early-Stage Funding

    The Incredible Dominance of SF in Early-Stage Funding

    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”

  • Surprising Growth of San Francisco Tech

    Surprising Growth of San Francisco Tech

    For years, there has been a narrative that San Francisco tech scene was in decline, particularly after the rise of remote work and big names moving out of the city. But from my perspective, the data shows a much more optimistic and exciting reality: San Francisco’s tech scene is alive, and it’s surging thanks to the rise of AI.


    San Francisco: The Hub of Startup Innovation

    When I look at the numbers, I see that SF is still home to some of the most innovative tech companies and talented founders. More than half of the startups from Y Combinator, one of the most prestigious accelerators, are now based in San Francisco, and this percentage is growing rapidly. Why? AI.

    Artificial intelligence has not just reinvigorated the city’s tech scene—it has put SF back at the center of it all. The Winter 2023 Y Combinator batch showed 36% of startups were AI companies, and most of them set up shop in the SF Bay Area. This isn’t just a return to pre-pandemic levels—it’s a strong surge forward.

    The Resurgence of Tech Employees in SF

    Another key metric is the concentration of tech employees. Despite some declines during the pandemic, the Bay Area still boasts 49% of all big tech engineers and 27% of startup engineers in the U.S. These shares are far greater than those of other tech hubs like Seattle or New York.

    It’s clear that while other cities like Austin and Miami have seen growth, they haven’t surpassed SF’s dominance. Engineers working on the future of AI are flocking to the city, contributing to a resurgence of tech energy that I see every day, walking the streets of downtown SF.

    AI Leads the Funding Boom

    SF has always been known as a place where startups are born, but it’s also the top city for early-stage startup funding. In recent years, 26% of all Seed and Series A rounds went to SF-based companies, a number that is again trending upwards after a brief dip.

    What really stands out to me is that in AI funding, the numbers are even more impressive. In the past two years, SF’s share of AI Seed and Series A rounds jumped to 38%. This tells me that the future of tech—particularly AI—is being built right here in San Francisco, making it the best place to be for anyone wanting to innovate in this field.

    The Pandemic Didn’t Kill SF, It Just Changed It

    While it’s true that some high-profile companies moved out of SF or scaled back their offices, I don’t think that’s the whole story. The reality is, SF’s position as a tech capital didn’t crumble—it evolved. During the pandemic, remote work became more common, which allowed many to move away temporarily. But as the data shows, tech talent has largely stayed in the area.

    What I see happening is that more companies are embracing hybrid or remote-first models. Employees might not physically come into the office every day, but they are still based in the city, still contributing to its tech ecosystem.

    Looking Forward: Why SF is Still the Place to Build

    I think it’s important to recognize that no other city is close to catching up with SF in terms of tech talent and innovation. While cities like Austin and New York are growing their tech ecosystems, they aren’t seeing the kind of headcount or funding numbers that SF continues to boast.

    San Francisco’s tech scene is far from dead. It’s thriving, and I’m excited to be here, watching it grow firsthand. As AI continues to be the next big wave of innovation, it’s clear that SF will remain the center of this revolution.

    Read the article: “How AI is Bringing San Francisco’s Startup Scene Back to Life”

    Read the additional resources

  • How AI is Bringing San Francisco’s Startup Scene Back to Life

    How AI is Bringing San Francisco’s Startup Scene Back to Life

    The narrative surrounding the decline of San Francisco’s tech and startup scene has been circulating for a while. It’s a story that many have heard, especially as people moved to Austin, Miami, and other cities. But, looking at the data, it’s clear that SF’s tech ecosystem isn’t just alive—it’s thriving, particularly with a new wave of AI startups.

    SF’s Comeback Story

    As someone who lives in the heart of San Francisco, I’ve seen firsthand how the city’s startup ecosystem has shifted. Like many others, I initially wondered if SF was losing its grip on being the go-to place for tech innovation, especially with companies leaving or downsizing their presence. But the data tells a different story—SF’s share of early-stage startup funding is not only holding strong but actually bouncing back.

    Looking at the chart, it’s obvious that the number of rounds of VC-backed seed and Series A funding took a hit around 2020 during COVID, but it’s back on the rise. AI startups, in particular, have played a significant role in this resurgence.

    In 2023, more than 26% of all Seed and Series A rounds are flowing into Bay Area companies, which is a larger share than any other region in the U.S. It’s also worth noting that AI-focused companies are driving this growth, taking a whopping 38% of these funding rounds. The AI boom is real, and SF is at the epicenter of this gold rush.

    Why SF Never Truly Left

    Despite some of the doom and gloom, tech never really left San Francisco. In fact, about 49% of all big tech engineers and 27% of startup engineers are still here in the Bay Area. These numbers are huge when compared to other U.S. cities. For example, Seattle, which ranks second, has just a fraction of these numbers.

    But the real question is, why is SF bouncing back so strongly, especially with AI? The answer lies in the talent and venture capital pools that this region continues to offer. Sure, the cost of living is high, and yes, there are still concerns about cleanliness and safety in some areas. But when it comes to innovation, particularly in AI and machine learning, there’s no better place to be.

    AI is the Game Changer

    The recent surge in AI startups is leading SF’s comeback in the startup ecosystem. According to SignalFire’s research, over half of all startups in Y Combinator’s Winter 2023 batch were based in the Bay Area. That’s the highest percentage we’ve seen since 2014, and it’s largely due to AI companies.

    This growth in AI innovation has brought new energy to SF. With the rising demand for AI expertise, San Francisco continues to be a magnet for top tech talent. And as more funding rounds pour in, I expect this trend to continue for years to come.

    Looking Ahead

    From what I can see, the future of SF’s startup scene looks incredibly bright. There’s a renewed sense of optimism as the city reclaims its place as the heart of tech innovation, especially in AI. Yes, there are challenges that remain, but SF’s culture of creativity, tech, and innovation is what makes it so unique.

    It’s clear that San Francisco isn’t just surviving—it’s thriving. The city’s ability to adapt and lead the way in emerging technologies like AI is exactly what will keep it on top of the startup world. So, for anyone who thought SF was over, the data—and the streets of San Francisco—tell a very different story.

    Conclusion

    While it’s true that other cities are making their mark in the startup world, there’s no denying that San Francisco continues to dominate when it comes to early-stage fundraising and tech talent. With AI leading the charge, I have no doubt that SF will remain a central hub for innovation and entrepreneurship for years to come.

    Read the article: “Why the SF Bay Area Remains the Unchallenged Leader in AI Talent”

  • San Francisco’s Tech Founders: A Surprising Revival

    San Francisco’s Tech Founders: A Surprising Revival

    For anyone who’s been following tech news over the past few years, you’ve probably heard a recurring narrative—San Francisco’s tech scene is dying. The pandemic, the rise of remote work, and relocations of high-profile companies painted a bleak picture. But the numbers tell a very different story.

    Founders Are Still Here

    In 2020, as the pandemic pushed everyone indoors, the assumption was that tech employees and founders would leave the Bay Area en masse. The high cost of living, concerns over safety, and newfound freedom to work remotely led many to predict that SF would no longer be the thriving hub it once was.

    However, according to the data, this exodus never truly happened. As of 2024, 10% of all founders still live in the Bay Area. Yes, that’s down from 12% in 2019, but it’s not the collapse many anticipated. In fact, this percentage has held steady since 2022, signaling a stabilization.

    Even though the percentage has dropped slightly, the number of founders remains strong. More than 1,950 founders are based in the Bay Area today, and while it’s a slight dip from the peak of 2,250 in 2022, the numbers are far from a mass migration. These figures confirm what many in the local tech scene already know—San Francisco remains the heart of startup culture.

    The Rise of AI Is Fueling Growth

    One of the reasons behind this stability is the rise of artificial intelligence. San Francisco has always been at the forefront of technological innovation, and AI is no different. The city’s dominance in AI funding is particularly impressive. More than 38% of all top VC Seed and Series A rounds for AI companies are happening right here in the Bay Area.

    This isn’t just a temporary trend. The percentage of Y Combinator startups based in San Francisco is higher today than it’s been since 2014. More than half of the Winter 2023 batch of Y Combinator startups are based in the Bay Area, driven largely by AI startups. In fact, AI has become such a key part of the ecosystem that it’s brought a new wave of optimism to the local tech community.

    Tech Talent Is Concentrated in SF

    While other cities like Austin and New York have seen impressive growth in their tech sectors, San Francisco remains unmatched. As of 2023, the Bay Area accounts for 49% of all big tech engineers and 27% of startup engineers in the U.S. These numbers are more than four times that of the nearest competitor, Seattle.

    SF’s lead in AI-related roles is similarly outsized. Around 35% of all AI engineers are based in the city, making it a magnet for talent in this cutting-edge field.

    Why SF Tech Scene Never Truly Left

    The reason San Francisco remains at the center of the tech universe is simple—talent and venture capital. The Bay Area has always been a hub for both, and despite all the talk of decline, those fundamentals haven’t changed. Tech employees may have the option to work remotely, but many still choose to live here.

    The data from SignalFire shows that, although there was a slight dip in the percentage of founders and employees living in SF, the city remains far ahead of any other tech market. Even Elon Musk moving Tesla to Texas or the rise of Zoom didn’t significantly alter the landscape. In reality, many tech workers stayed, just not in the office.

    Conclusion: SF’s Tech Scene is Still the Best Place to Build

    It’s true that San Francisco faces challenges—rising rents, housing shortages, and civic issues. But the idea that SF’s tech scene is dead simply doesn’t hold up under scrutiny. The city continues to lead in areas that matter most—AI, tech talent, and venture capital.

    In many ways, the current narrative around SF’s decline is driven more by sensational headlines than reality. The truth is that San Francisco remains the best place to build, especially if you’re in tech. Whether you’re a founder, an engineer, or an investor, the Bay Area continues to be a powerhouse of innovation.

    Read the article: “Triumphant Return of SF Tech Boom”

    Read the additional resources

  • Triumphant Return of SF Tech Boom

    Triumphant Return of SF Tech Boom

    For a while now, there has been talk about the decline of San Francisco’s tech scene. Some reports have claimed that the heart of innovation had shifted elsewhere, and that the city’s dominance in the tech industry was no more. However, as I look into the numbers, I find myself disagreeing with this narrative.
    In fact, San Francisco (SF) is back in full force, and the data shows that it never really lost its edge. Let’s dive into why SF continues to be the center of tech innovation and why those who predicted its downfall may have spoken too soon.

    San Francisco: Still the Home of Engineers

    First off, when you look at where tech engineers reside, the SF Bay Area remains the top destination. According to data, SF still boasts an impressive 49% of all big tech engineers and 27% of startup engineers. These numbers far surpass any other city, and while the pandemic may have slowed growth, it didn’t reverse it. SF’s share of AI employees is also at 35%, which speaks to the city’s leadership in this rapidly growing industry.
    Though cities like Seattle and New York have made gains, they don’t come close to challenging SF’s stronghold. What’s most interesting is that after a brief dip post-2019, SF’s engineer population has started to grow again, particularly in AI-related roles. This shows that not only is SF holding its ground, but it’s also adapting to the latest trends in tech.

    Y Combinator Startups and Early-Stage Funding: SF on Top

    One of the most striking indicators of SF’s resilience is the growth in new startups, especially those coming out of Y Combinator. Historically, SF has been the place to be for early-stage companies, and this trend continues to grow stronger. Over half of the companies from the Winter 2023 Y Combinator batch are based in the Bay Area, the highest percentage since 2014.

    This is largely fueled by the AI boom, which has brought renewed energy and investment into the region. In fact, 26% of all Seed and Series A funding rounds from top venture capital firms are going to SF-based startups. That’s more than any other city in the U.S.
    Even as some founders left during the pandemic, we’re seeing a return. The allure of SF remains strong for entrepreneurs who want access to a deep talent pool and venture capital. While other cities are flourishing, the Bay Area continues to be the best place to build groundbreaking companies.

    The AI Gold Rush

    If there’s one area where SF is really shining, it’s artificial intelligence. SF’s dominance in AI funding is even more pronounced than in previous years. Over the last two years, the percentage of top venture capital rounds going to AI companies based in SF has surged to 38%.
    This new AI gold rush has brought fresh momentum to the tech scene, attracting more engineers and entrepreneurs who want to be at the center of this emerging field. The sheer number of AI-related community events happening around the city is proof that SF is not just surviving—it’s thriving.

    Challenges Are Real, but SF’s Future Is Bright

    Of course, SF isn’t without its challenges. High costs of living, a challenging housing market, and issues with public services remain significant hurdles. Some parts of the city still struggle with safety and cleanliness, which have led some families and businesses to relocate.
    Yet, for all its struggles, SF is unmatched in its density of tech talent, investors, and opportunities. This combination makes it the best place to build a tech company, especially in fast-growing sectors like AI.
    As we move forward, it’s clear that the city is on an upward trajectory again, with AI fueling much of this growth. SF might have wavered briefly, but it never truly fell off the map, and its reign over the tech industry is not likely to end anytime soon.

    Read the article: “Why the SF Bay Area Remains the Unchallenged Leader in AI Talent”