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What makes San Diego a tech hub for companies?

Screen Shot 2020-10-25 at 19.8.44 25, 2020)--San Diego is among the country’s top tech hubs for companies. Its burgeoning tech scene has deep roots in data and analytics. Tech giants are building offices and creating tech jobs.

In this article, we’ll discuss what makes San Diego a tech hub for companies. What was it like before, and what changed? Why are tech entrepreneurs moving in?

Let’s dig into it.

In the Beginning

San Diego wasn’t always the booming tech hub it is today. In the beginning, it lagged behind Silicon Valley and other tech hubs. It was best known for its gorgeous beaches, perfect weather, and Naval base.

Since then, a significant amount of tech-based startups and companies have popped out. The University of California, San Diego (UCSD), gained popularity for its science and technology programs. As students graduated, they made their way into the downtown and founded small businesses and startups, which have become huge companies.

From there, a tech boom was born.

The Startup San Diego Community Program

In 2012, the Startup San Diego community program was founded. Small-time entrepreneurs from all over the city gathered together to form a tech community. What started between a couple of attendees now reports over 4,000 regulars.

In 2018, the startup scene grew even bigger with the founding of the San Diego Tech Hub, a non-profit initiative aiming to connect IT professionals to digital marketers, owners, and sales teams.

Quality of Life Screen Shot 2020-10-25 at 19.8.44

It also helps that San Diego offers a relatively better quality of life. Now dubbed the “Silicon Beach,” the county has less frequent traffic jams, less fog, and better beaches than the Bay Area.

Cheaper Rent and Offices

More importantly, rents are extremely attractive, especially for young graduates and entrepreneurs.

IT startups find plenty of cheap office spaces in San Diego. And low rent and overheads are important for these startups, especially if they’re still in the pre-funding stage.

As Silicon Valley is pricing itself out of the market, San Diego is set to benefit even further.

No Shortage of Talents

Finding the best software development agency in San Diego is easy, thanks to its large pool of talents coming from across the city. There has also been an effort to attract talent as well as capital from Silicon Valley.

Moreover, UCSD has produced more graduates than many other universities. According to research, the university has produced more than 340 entrepreneurs who founded 330 companies. They have raised $5.73 billion from 2006 to 2018.

Booming Tech Investments

According to data, San Diego ranks among the top 10 tech numbers by deals. It accounted for almost 70% of all first financings from 2016 to 2017.

San Diego companies that attracted funding more than doubled to 134 from 2016 to 2017. And in the third quarter of 2018, San Diego startups raised the largest amount of VC (venture capital) since 1995 -- over $900 million.


But San Diego also faces some challenges. It has room to grow, but it will have to overcome such challenges first before becoming a true success story.

For example, there is a lack of large office spaces for unicorn startups (businesses valued over $1 billion). The city has long been dependent on the life sciences sector, which means it has more lab spaces in the outer suburbs than in downtown office blocks.

Another is the AI hype. As San Diego establishes itself as a tech powerhouse, it has to be careful not to buy into hypes too much -- or it will crumble as the hype fades away.

At present, much of the AI hype is still that, a hype.

Overall, for San Diego to keep momentum, it has to produce results that are more than hype or speculation. It also needs to accommodate the changing needs of maturing businesses as they transform from tech startups to tech corporations.


San Diego images courtesy of