If techs and startups wanted to see success, then they had to be seen in Silicon Valley. The Valley was a huge draw for all things tech. However, the phenomenal success of Silicon Valley has led to skyrocketing property prices. It is now next to impossible to purchase even a tiny home under a million dollars and rent for even the smallest apartment runs from $2,500 to $3,500 per month. This is why Venice Beach is the new Silicon Valley.
A residential community situated on the beachfront, Venice was founded in 1905 as a resort town. The independent city merged with Los Angles in 1926 and now forms a part of the area that is commonly known as Silicon Beach. So just other factors are tilting the balance towards Silicon Beach?
Photo Source: huffingtonpost.com
Where once, the techies would never even dream of moving out of Silicon Valley for fear that they will not get job opportunities outside. Startups would not go out of the valley because they could not hire the talent needed to succeed in their business.
Now, many startups, are setting their headquarters in this beautiful neighborhood. Lemonlight Media Video Production Company decided that setting their headquarters just under a mile away from Venice Beach was the move to make, as it allowed them to be close enough to Los Angeles and Orange County. This, in turn, has allowed them to reach a wider spectrum of clients.
Many others are now setting their mark in this glorious beach town. Why are they now thronging to the Beach?
Venice Beach: The New Silicon Valley
At the three-mile sliver of land called Venice Beach, corporate headquarters of major firms are fast becoming as common as skateboards and surfboards. The transformation occurred when within a short span of time Microsoft, Google, Facebook, and YouTube opened offices in the area, and startups like Snapchat, Hulu, Buzzfeed and hundreds of others followed suit. There is a host of benefits of moving to Venice Beach.
Photo Source: investors.com
- Celebrity Value: Numerous startup companies are able to use the entertainment industry to their advantage. They have successfully enticed celebrity investors.
- Background: The lead-generation startups have a greater chance of success due to the familiarity of LA with fashion, e-commerce, and entertainment.
- Real Estate: Prices of homes and office space are much cheaper in Los Angeles.
- Transport: The long overdue rail connecting downtown Los Angeles and Sana Monica is nearly ready to serve riders. Furthermore, a 6.6-mile extension due to open next year will take riders all the way to the Beach.
- Product Testing: Silicon Valley gained some bad reputation for making highly interesting apps that tempted only the younger generation and the super-rich making the apps. Such apps held little value practically. The diverse population and size of Los Angeles are a much more realistic testing ground for the start-ups of Venice Beach.
As technical giants move to Venice Beach, they bring with the power to purchase, which causes an upsurge in demand, and this, in turn, forces prices up. At the start of the year, home prices increased by more than ten percent as compared to the previous year. Area real estate experts point the finger at technical boom as being behind the escalating prices. While it is making Venice more prosperous, it is also taking something away in terms of peace, and identity of the area.
Header Photo Source: innomag.no