Palo Alto- The heart of Silicon Valley

And one of the most expensive cities in the world

Just a few miles south of San Francisco lies the so called ‘Startup Paradise’.

Silicon Valley, home to the big ideas, the risk takers, the revolutionaries, the collaborators,
where business meetings are happening at every corner and bringing people together
from all over the world.

Is this really the place where everything is possible? What is it about this place that
attracts people to leave their jobs, their countries, or even their families to move and start
anew over here? From reading up on a number of people and interviews with the start up
founders, we have summed it up as a place where everything is possibly just ‘a talk away’.

The best place to make ideas happen, receive quality advice, generate capital and
attract talent. When cities like New York are driven mainly by finance, Silicon Valley is
driven by innovative spirits following their dreams. Who wouldn’t like to be in a place
surrounded by like minded people who works on similar topics, has big ideas and
creativity, and shares a similar level of passion and determination. Where inspirations are
flowing, communities are collaborative and supportive, helping each other to grow. While
some states might see around 3 startup companies per month, at Silicon Valley you can
see that happening in a day, whether its Biotech, Internet/Digital media, Rockets, Artificial
Intelligence, Cyber security, Auto Tech and etc.

Swarming with investors, it is no wonder that people say moving to Silicon Valley is key to
making it through. Here, it doesn’t matter if you’re wearing a suit or a t-shirt, if you’re a
16years old high school drop out or a 50 year old professional, as long as you have an
idea, a crystal clear plan of how to make it work and the ability to put a team together,
people are ready to listen to you, all at the same time embracing the ‘It’s ok to fail’ attitude.

But how are people from all over the world financing their ideas? How long can a startup
haven survive until it really starts to make money? After all, it is a fact that 90% of start ups
ends up failing, whether it is in Silicon Valley or in Singapore. In 2016, Silicon Valley has
seen the highest number of ‘out-migration’ than any other year since 2006. Why? Well,
apart from being a startup haven, let us not forget that it also home to a number of tech
giants and billionaires. HP was born here, Google, NASA, Apple, Facebook are all
surrounding the bay. Companies and jobs are growing so fast that the economy and
infrastructure is failing to keep up, they are short of sustainable housing and transportation
solutions. How is it possible that high ranked techies with a six figures income are now
priced out of Silicon Valley and its surrounding area, where the median household income
tops $100,000 a year?

The real estate market prices in Palo Alto have been sky rocketing since the ‘Tech Boom’.
• Average sale price in the city of Palo Alto has jumped from $800,000 in 2009 to
$190,0000 in 2015
• Average house price costs $2.5m
• Average rent costs $4390/month
• Average rent for a one room apartment, in a bad neighbourhood starts at $2400/month

Need we say more? It is no wonder that along with the number of jobs rising, the number
of startups displaced is also rising ferociously thanks to the aggressive and rapid nature of
the real estate market. More and more people are forced to live in recreational places and/
or their cars, which might not be the perfect scenario for all.

However, we at wohnraumbitzer.de don’t believe its all gloom and doom. Thanks to the
global nature of the world, if you’re connected to a high speed internet and have a good
laptop or phone, an idea can come to life from anywhere in the world.

You can join in the digital nomads and work from your own bed, the Singaporean Island,
the Bali beaches or even here in the snowy mountains of Albstadt along with us! : )

As Mark Twain once said ‘The Secret of getting ahead is getting started.’

We hope you’ve enjoyed reading our article and welcome all kinds of feedbacks!

Best wishes from the team,
wohnraumbitzer.de

Tel. 07431 74 99 770

References:
http://www.rocketspace.com/tech-startups/silicon-valley-startups-why-location-matters-tostartup-success
https://readwrite.com/2015/07/28/startups-cities-rankings-silicon-valley/
https://www.youtube.com/watch?v=nsNPo2QFwnI

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