Startups

Why entrepreneurs are leaving the Bay Area for their next startup

Illustration: Sarah Grillo/Axios

In launching their next startups, a growing number of founders are choosing to forego the San Francisco Bay Area and its sky-high rents and intense competition for engineering talent. Instead, they are setting up shop in places like Austin, Seattle and even New Mexico.

Why it matters: As technology becomes a growing part of the economy, Silicon Valley can't — and probably shouldn't be — home to most new startups.

Expert Voices

Real estate is emerging as an AV battleground

Illustration of for sale sign with license plate that reads "4sale"
Illustration: Sarah Grillo/Axios

As leading autonomous vehicle companies seek to bring “robotaxis” to market, their competition could extend from AI-powered software into a new arena: real estate.

The big picture: Today's ride-hailing companies are software-only platforms. But as AV technology goes commercial, companies that plan to own and operate fleets of robotaxis — including Waymo and GM Cruise — will need considerable real estate footprints to store, clean, refuel and repair thousands of vehicles.

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