Apple, Google, Facebook. All of these household names needed funding early on in their lifetime.
There is a belief that if you want to start a tech company, you need to go to Silicon Valley. But one question that I never hear asked is why? Why is it that this became the go-to place and how did it even come to exist?
In the 1960’s Silicon Valley came into existence as a result of many technology related companies being started. One of the big companies, Fairchild Semiconductors, began branching off into multiple companies when employees came up with ideas while working there.
There have been attempts to bring the stream of venture capital funding to other parts of the country and build other “Silicon Valley’s” but as time passes, things become more and more centered in this area of California instead of growing in other areas of the country.
Since the companies that they funded were all in the same area and the workers to supply to the companies were as well, there was no need to move to other parts of the country.
Fast forward some decades and investment in this area is continuing to grow.
43 percent of Venture Capital money goes to Silicon Valley today which is an increase from 28 percent in the late 1980s.
There are firms that are located on the east coast, but it may take a lot of successes and continued investment in them to help them build a reputation like the west coast.
Information: Silicon Valley movie, http://www.entrepreneur.com/article/252225