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Forall the chatterabout the decline of San Francisco , data repeatedly testify that the Bay Area , including the city itself , is still the best place for speculation - support inauguration .
Startups turn up in the Bay Area vacuumed up $ 90 billion of VC investment in 2024 , which was 57 % of the $ 178 billion of US venture financial support spent last year , new stats let go of on Tuesdayby Crunchbaseshow .
In 2024 , OpenAI , headquartered in San Francisco , was evidently the mothership , both in spawn a nearby AI inauguration industry ended withits own deep - pockets startup fund , and in theVC dollars it best up for itself . But others include San Francisco ’s Databricks and itsrecord - breaking $ 10 billion in funding ; Elon Musk ’s xAI , which raised $ 12 billion in two roundslast twelvemonth andpromptly moved into OpenAI ’s onetime headquartersin the San Francisco Mission District ; Mountain View ’s Waymo and its$5.6 billion Series C ; San Francisco ’s Anthropic , which raised over $ 8 billionin 2024 ; and with child raises in 2024 from San Francisco’sScale AIandPerplexity .
And , as we previously reported , this is n’t just happenstance . It ’s a issue of the domain ’s authorization in AI , the biggest tech of 2024 , as well as being home to Big Tech ( Google , Nvidia , Salesforce , etc . ) and having a long - standing inauguration infrastructure there — from Y Combinator to the VC land of Sand Hill Road .
This ego - fulfilling bicycle show no indications of flag in 2025 , in part because the Bay Area still offers the big concentration of skilled tech employee . Some 49 % of all Big Tech engineers ( often the startup founders of tomorrow ) and 27 % of startup engineers are located there , accord to datum from SignalFire .
With such gamy density of everything from moneyman to engineers , meeting the the great unwashed necessary to build a startup is just easier , say founders who ’ve relocated to San Francisco in 2024 . “ We feel like the talent pool is better . Also the client pool is better , ” Anh - Tho Chuong , co - father and CEO of open origin billing platform Lago , previously assure TechCrunch .
Correction : This mail was updated to reflect entire financing was US only , not world .
