It all started with a tweet. Well, almost. A year ago, young investor and principal at Peter Thiel's venture capital firm Founders Fund, Delian Asparouhov, posted a tweet, "ok guys hear me out, what if we move Silicon Valley to Miami." With an extensive list of replies and more than 2.3M impressions, most from tech influencers and founders, Miami Mayor Francis Suarez soon picked up the gauntlet and shot, "how can I help?".
Those sharp four words became viral and sparked a tech boom that, by now, it's clear that's not just hype. Soon after, Miami Mayor launched a solid social media campaign to attract talent and investments to the region to build the next tech hub of the Americas.
But, even though Asparouhov's tweet may have been the spark to ignite the Miami tech fire, the truth is the region had been steadily working on building a tech ecosystem for a few years.
And that work was a fundamental pillar to support this tech wave. A movement like this wouldn't be possible without having some elements already in place, and that's when founders, organizations, VCs, and other ecosystem players saw the fruits of their long-term efforts.
However, it's undeniable that these tweets placed Miami in the spotlight as a tech gateway for Latin America, and 2021 has been a buzzing year for the region's development.
What’s Beyond The Hype?
Earlier this year, Miami Mayor stated that the tech and finance wave is a movement, not a moment. That way, Francis Suarez showed once again his commitment and support to the region's growth as a new tech hub and that this is beyond the hype.
But how realistic is it to move Silicon Valley to South Florida? We believe that the point here is not about replacing the giant tech hub in the Bay Area, but building a new one that also serves as a tech gateway for Latin American ventures. Certainly, 2021 has been a flourishing year for the Miami tech ecosystem.
Among the many actors involved in building this movement, high-profile investors and tech execs such as Keith Rabois and Peter Thiel are solid promoters of the region's development as a tech hub. Also, it seems that Twitter has become a hot spot for both founders and VCs.
Actually, a tweet by Delian Asparouhov in May kicked off an impromptu tech week out of nothing. "Ladies and Gentlemen, welcome to the unofficial start of the inaugural Miami Tech Week, I know of at least 100 founders, VCs, etc., all flying in. Reply here if you're gonna be in town this week so folks can know!"
This totally unplanned event gathered founders and VCs in a series of events that led the Miami Mayor to announce an official tech week in April 2022 alongside Founders Funds and eMerge Americas. But, what's beyond social media hype? Let’s see!
- In January, SoftBank announced a $100M Miami Initiative to support and help build the community of technology startups in Miami, and so far, they have invested more than $250M up to date.
- Private equity deals and venture capital have increased 60% in South Florida in the first quarter of 2021.
- Florida ranked the n°2 Best State for Business according to a Chief Executive survey.
- Tech startups in Miami have closed 141 deals for over $1.3B just by September 2021.
- The Miami area ranks number one for growth and migration changes, with a 15.1% increase of tech workers based in the city compared to 2020.
- According to an IDB study released in November, "A Bridge to the Future," Miami is the largest venture capital market in the world, and the South Florida startup ecosystem is one of the fastest-growing in the US.
- There are an estimated 800,000 micro-businesses in the area from Miami to Pompano Beach, an average of 10 per 100 people, according to GoDaddy research.
- Notable tech companies relocated to South Florida, such as Blockchain.com, Novo, and Open Store, to name a few.
- Miami-Dade Mayor Daniella Levine Cava announced Francesca de Quesada Covey as tech innovation advisor to help build a supportive and innovative tech ecosystem in Miami-Dade County, thanks to a John S. and James L. Knight Foundation investment.
- Watershed moment in August, when Miami and the company CityCoins launched MiamiCoin, a cryptocurrency focused on boosting the city's economy and positioning it as a leading tech hub.
- Two South Florida technology associations, Tech Hub South Florida and TechLauderdale, merged, forming South Florida Tech Hub. An organization focused on technology industries in Miami-Dade, Broward, Palm Beach, and Martin counties.
The Role Of Base Miami In Miami’s Tech Ecosystem
In their path to support Latam tech startups in their expansion journey to the US, Base Miami has also made significant contributions to ecosystem development this year.
In July, we released the Market Entry Bootcamp co-hosted with Mana Tech and ASELA USA, coaching 12 innovative startups to land in the US market successfully. Also, we lead a series of webinars and talks with CEOs of diverse Latam companies, buzzing pitch sessions, and virtual and in-person events for founders partnering with key actors such as The LAB Miami, ProChile, ProColombia, and Miami-Dade Beacon Council, to name a few.
We keep working towards our mission to support forward-thinking Latin American companies land and expand in the US while helping build this buzz-worthy tech gateway for America and The Caribbean.
The Bottom-line
It's been a busy year for the Miami tech scene. What seemed to be just a moment became a solid movement with venture capital pouring in, tech companies relocating their offices, and LatAm startups expanding their operations in the area.
Still, there's a lot of work to do to be one of the leading tech hubs globally, and the focus should not be replacing Silicon Valley. The region has plenty of potential to generate its own identity, and at Base Miami, we are fully committed to supporting this growth through our diverse programs, events, and partners. Follow us and join the tech movement!
