MIAMI
SUNNY DAYS FOR
TECH
Startups drawn to Miami’s emerging venture ecosystem
S
By Rachel Hartman HUNNING TRADITIONAL HUBS
An Offer to Help Indeed, from tax incentives to government programs and tech fairs, Miami’s atmosphere makes it increasingly easier for startups to launch—and then build. Downtown Miami is slated to gain more than 1,000 new technology industry jobs by 2024, according to the South 26 I N S I G H T Dec. 31, 2021–Jan. 6, 2022
Florida Business Journal. The city of Miami Beach is offering to pay qualifying companies to locate within its borders. High-tech and financial service firms that are eligible can expect to receive payments totaling $180,000 to $240,000 per company over the course of three or four years. The review and permitting process for companies that meet the requirements has been expedited and takes just 10 days to complete. The city of Miami Beach announced these initiatives in March, in response to a growing interest among companies in the Northeast and Silicon Valley to move to Florida. All these initiatives coincide with the campaign that Miami Mayor Francis Suarez launched when he wrote on Twitter, “How can I help?” in 2020, in response to frustrations voiced by venture capitalist Delian Asparouhov. At the time, Asparouhov was living in San Francisco and had witnessed the rise of taxes and rents in the area, along with the tension between the tech segment and local political movements. When the Founders Fund partner toyed with the thought of moving to Miami, he said on Twitter, “ok guys hear me out,
what if we move silicon valley to Miami?” Suarez jumped in, personally offering assistance through Twitter. His question garnered more than 2.7 million impressions. It also spurred Suarez on a quest to fulfill his offer to help. The conversation appeared to echo various concerns that were rippling through traditional, yet now crumbling, tech centers. Asparouhov moved his Silicon Valley firm to Miami, joining the ranks of other firms seeking lower costs and a more open community. Venture firms have responded as well, with managers such as Steven Cohen’s Point72 Ventures, Blackstone, and G Squared opening or expanding offices in Miami. According to PitchBook, Softbank started a $100 million fund for Miami that has increased to more than $250 million.
A Robust and Open Community A welcoming environment for entrepreneurs proves to be one of Miami’s main appeals. After basing a company in Los Angeles, Lauren Weiniger moved to Miami to launch another one. “We’re growing fast and decided to headquarter in Miami, which has been
FROM TOP: POLA DAMONTE VIA GETTY IMAGES, JOE RAEDLE/GETTY IMAGES
such as San Francisco and New York, entrepreneurs are taking their laptops and heading to—the beach. Miami Beach, that is. With a skyrocketing number of venture dollars swirling in the air, it seems the breeze is beckoning tech startups to come and test the waters throughout the Miami area. Venture deals have amounted to $3.5 billion this year across 234 transactions, which is nearly three times more than was reported in 2020, according to PitchBook data. Miami placed second on Forbes’s 2021 ranking of emerging technology hubs in the U.S., beating places such as Austin, Texas, and coming in just under Tampa, Florida, which took the top spot. Its new tech job listings grew faster than any other major U.S. city during the second quarter of 2021, outpacing other locales such as Phoenix and Silicon Valley.
