Three years ago, I moved from Silicon Valley to the burgeoning Miami startup ecosystem. When I left San Francisco, I wrote an article called "Will the last person leaving Silicon Valley, please turn out the lights."
It was about whether startups should still be settled in the Bay Area. My conclusion was that once upon a time, it was absolutely necessary. However, the world and the way businesses scale and grow have been experiencing a significant transformation since then.
As a consequence of my decision to move to South Florida, a wide array of reactions popped up. I've been asked questions like "Are you retiring?" to "Going to live the party life?" throughout these three years. But indeed, those inquiries weren't a bit close to my goal.
I then continued as a consultant, working jointly with international startups entering the broad US market. In line with this, I also became co-founder emeritus at Base Miami, a market entry accelerator, continuing with my labor mentoring local companies.
Miami Tech Boom: a Moment or a Movement?
Nevertheless, much water has gone under the bridge since I moved in 2018. Miami has become "a thing." What many people thought was a moment became a full-scale movement. Shortly after, Silicon Valley people started to look at South Florida with keen eyes.
High-profile investors like Keith Rabois, General Partner of Founders Fund, Blumberg Capital founder, David Blumberg, Jon Oringer, and also NYC private equity firms, settled in Miami. In fact, earlier this year, Keith Rabois tweeted, "I have met more new interesting people in Miami in 3 weeks than all of 2020 in the Bay Area." An influential statement from someone who built his career based in California.
Moreover, there were many tech startups, especially in Fintech like NovoPayment, establishing in the area. In this context, Miami became incredibly welcoming to new investors and companies who wanted to be part of this booming tech scene.
And to show that the commitment to the tech ecosystem growth is real, local authorities got involved in supporting VCs and startup founders. By the end of 2020, the movement burst with a tweet by famous venture capitalist Delian Asparouhov stating, "ok guys hear me out, what if we move Silicon Valley to Miami?". Immediately, Miami mayor Francis Suarez picked up the gauntlet and replied, "How can I help?". Since then, the tweet has had more than 2.3 million impressions and put the city in the spotlight.
But, in this scenario, Covid-19 has been an additional catalyst. Unlike other central locations like New York, Florida stayed open during the pandemic. As a result, the state maintained solid profitability numbers that compared well with most lockdown states.
A Founder’s Story
To give you a holistic view of the tech ecosystem development, I would like to share the thought process of a LatAm entrepreneur. Base Miami recently hosted a panel where Matias Rivera Larrain, Co-Founder & CEO at Fz Sports, shared his own experience and thoughts with us.
During the talk, Matias made a recap of the key variables he analyzed to land and expand his company in South Florida. He prioritized access to capital as seed funding is a crucial stage for startup growth, time zone alignment, the quality and cost of living, connectivity with Latin America and the rest of the US, and the networking opportunities in the area.
The resulting discussion was yet illuminating and inspiring. His explanation was compelling as he emphasizes that friends and colleagues are moving from SF to Miami. As an engineer, every step in Larrain‘s process of moving was thoughtful and analytical.
Parting Thoughts
Today, the question I raised three years ago is more relevant than ever: "If you are an international startup coming to the US, does your startup NEED to be in Silicon Valley, and does it still make sense to land there? Are the PREMIUM costs worth the move to the San Francisco Bay Area?". Miami may not replace Silicon Valley, but it's growing towards being the next tech hub for LatAm startups, and Latin founders are already joining the movement.
