San Francisco, CA
Innovation That Matters 2017
The Bay Area Still Dominates for Investment as Next-Wave Startups Rise
The San Francisco Bay Area ranked number two this year, neck-and-neck with the report’s top-ranked Boston on almost every measure. The region fell behind Boston for second ranking in access to capital, as tthe Bay Area’s percentage of investment relative to GDP is an astounding eight times higher than the 25-city average.
The Bay Area’s High Quality of Life Attracts Millennials, but Cost of Living Dampens Diversity
Built by renowned local universities and industry-leading tech companies, the Bay Area has never failed to attract local talent and supportive funding. Millennials are attracted to the spiritual capital of the startup industry due to a high standard of living and the area’s image as an innovation hub.
The high cost of living has become a barrier to entry for many over the years, denying certain populations an opportunity to contribute to the city's innovation economy. This artificially limits the city’s startup growth and contributes to its number two ranking in this year’s report.