Miami has been becoming a financial hub drawing people of various diversities. With all the multinationals and entrepreneurs looking to establish their new hub for collaboration and innovation, Miami has had quite the tech boom.
This sudden buzz in Miami brings in the image of something out of Silicon Valley on the East Coast. The picture becomes a blend of people talking about crypto and driving Teslas.
What would you think is responsible for this sudden shift in Miami becoming the new technology hub and startup for the U.S.? You could put your finger around the point that there is no state income tax, be it the year-round summer or the bright and brilliant minds leading towards the change.
Will this boom in technology be temporary, or will Miami continue to hold its power? Keep on reading to find out more!
Why is it Miami?
Miami has showcased the diversity of its culture and the nightlife over the years. It is known as Latin America’s capital, and it is full of bars, beaches, and an abundance of beautiful people. Everyone knows that Miami is a place to have fun, entertain yourself, and let loose.
This reputation has helped make Miami rich, roughly around $1.5 billion annually, just from tourism tax. The city itself, including the whole of South Florida, has always been somewhat distant from the tech hubs established on the Western Coast, or more specifically, the Pacific West Coast.
However, this all just changed with the pandemic. Ever since the traditional enterprise models were disrupted, it made Miami the new hot location for investments in tech. Hundreds of different companies have set up their shops in Miami, starting from digital marketing to cryptocurrencies. All this just in the span of the last 18 months.
Just in the last year, the city witnessed a venture funding that went up to $970 million. When you compare it to 2016, it is a lot when the venture funding was just around $135 million. This trend is not just limited to Miami. It is exceeding outside of the city and going all across Southern Florida.
The city of Miami has been drawing attention from the big shots of the tech world, such as SoftBank. It alone has allotted around $250 million to some of the businesses operating in Miami. According to some reports, it was seen that there had been around $5.33 billion just in investments in 2021, which is a lot more when you compare it to the $2.27 billion that the city was able to rake in in 2020.
You can only realize that the city has been gaining popularity in the crowds of crypto and fintech. We even got to see the 2022 conference of Bitcoin right here. It was all brought together with the famous design of the charging bull from Wall Street to signify the city’s rising status.
The start of all of this would have to be a billboard sign. That’s right, a billboard sign right outside of the city of San Francisco that looked like a tweet from Twitter. It was from Francis Suarez, the mayor of Miami, and it said, “Thinking about moving to Miami? D.M. me.”
It has to do with most tech companies either downsizing or just shifting to remote work. It helps them cut off the expensive office expenses, and that’s why many of these companies are moving out. Some reports even show that the domestic exits from San Francisco have been on the rise, and the entrances have decreased.
Change of Scene
A lot of tech titans in the U.S., just in a year, have been making a move to Miami, or just southern Florida, because they want a change of scene. Having established their tech hubs on Western Coast, such as Seattle, San Diego, and San Francisco, most of these tech giants just thought of changing the whole coast for a change of pace.
Miami is not just a great place to work for these tech enthusiasts and entrepreneurs, but it is also a great place to live and party. That is what most of them have to say about the city.
After this move, reports from The National Venture Capital Association and PitchBook say that Miami has become the city that gained the most startup activity in all U.S. The city saw a 271% increase in its venturing capital funding.
This overgrowing frenzy can somewhat be understood to a certain point given the history of what has made the city of Miami and South Florida famous. The place offers a hospitable and warm climate with temperatures around 70°F to 90°F.
Moreover, there is the nightlife of Miami. It was already quite impressive before the pandemic, and now it is all the more glamorous with the stream of new restaurants and bars everywhere.
The crisis from the Covid-19 pandemic has also helped to highlight the good parts of living in South Florida compared to some of the more established places such as San Francisco and San Diego.
Ever since the COVID-19 restrictions were put up and the outrageous rents, which are all seen as significant problems, it is more understandable why most of the pioneers of the new generation are deciding to head on to the East.
The Business Talk
This travel direction has been receiving a lot of governmental support. Francis Suarez has been on a drive of publicity over the past year. He was elected as the mayor in 2017 and was recently re-elected by a huge margin. Francis Suarez has been hard at work to turn Miami into a Southern Silicon Valley on the Eastern Coast.
His business reach did not just stop in the publicity, it went in on Twitter as well. Suarez went as far as sliding into the D.M.s of many potential investors who had questions about his hometown.
The city of Miami is still showing off its fun-loving and entertaining reputation. But, most of the local leaders in the government understand that when it comes down to competing with Silicon Valley, it requires a lot more than just the abundance of sunshine and beach bars.
This competition begins with the quite excellent tech infrastructure of the city. This massive 750,000 sq. ft., six stories tall data center hosts the Network Access Point of the Americas. This facility itself can offer more than 600 customers of the enterprise direct peering access.
All of this is covered by the super-fast internet. It was seen that around 56% of the people in Miami are enjoying download speeds that go up to 1000 Mbps or even higher. This is far more than twice the whole national average.
This city also knows how to bring in new businesses in other ways. The DDA or Downtown Development Authority pays the new companies for all the local jobs they can generate. Since last year, their campaign has developed around 1900 jobs in Miami.
Miami now has the support system it needs to withstand the test of time. With hundreds of new businesses and enterprises already being established there, the city has built a foundation that will serve it well even in the future. With everything Miami has to offer, it is undoubtedly the new tech and marketing hub of the U.S.