Silicon Valley investors are growing increasingly interested in Europe. That’s the main takeaway from this Sifted Chart of the Week. Last year was a record year for fundraising by European startups with €20.5bn (£18.1bn) spread over more than 3,300 deals. And it came with an increasingly US flavour.
We've heard it in startup communities everywhere—while it's become increasingly likely for high-potential companies to get started most anywhere, the best ones often leave for Silicon Valley. One of the most commonly-cited reasons is that Valley investors require companies to move. That may be true, but perhaps it's for a much bigger reason—because doing so is beneficial for these companies. But, what do the data say? Jorge Guzman of Columbia University attempted to answer this question in a research paper: Go West Young Firm: The Value of Entrepreneurial Migration for Startups and Their Founders. Here’s what he found.
A New York Times article published yesterday declares that “Silicon Valley is Over.” This follows a recent Wired article declaring that “Everyone Hates Silicon Valley.” While this does make for great journalism, I worry that it sets a unrealistic expectations in other parts of the country. Silicon Valley is not over—not even close. And when you suggest that it is, it implies a Silicon Valley’s downfall will be a big win for everyone else. That’s zero-sum thinking and I don’t agree with it.