21:16 14 October
Oakland Is Not San Francisco, But It's Getting More Startup Funding
Oakland Is Not San Francisco, But It's G San Francisco
San Francisco, United States Of America
Over the last few weeks, we've been looking at the start-up investment patterns for cities in the San Francisco Bay Area. We began with San Francisco and went on to the East Bay. The next stop in Oakland.
Back in the days of the dot-com bubble, the City of Oakland put advertisements on top of San Francisco taxis saying that "Oakland is closer to San Francisco than San Francisco is to San Francisco."
It's one of those statements that is both demonstrably false and quite accurate. It's actually faster to get to downtown San Fransico by bus from Oakland than the outer San Francisco communities. The towns are just 8 miles apart, as the Crow flies.
The proximity to the center of the millennial boom, combined with a transit-friendly downtown and a slightly lower cost of living and business operating costs, makes Oakland an increasingly popular destination for scaling up startups. A lot of locals, including many who felt they were escaping tech stagnation in San Francisco, are not pleased. But then it disappears.
To date this year, 47 Oakland-based companies have closed funding rounds with a combined value of $583 million. This is the highest total in years, and part of what has mostly been the upward trend of funding in recent years:
Still, Oakland isn't rich in unicorns. Per Crunchbase data, there's only one private, venture-backed Oakland company that has crossed the $1 billion valuation threshold. Marqueta, a fin-tech unicorn, has raised almost $400 million for its configurable payment card technology.