Miami won’t be the next Silicon Valley because we don’t need another one – TechCrunch

Founders crowd And investors from the West Coast to states such as Texas and Florida have been the forerunners of something big, a movement in the making for decades.

The future of startups is a decentralized, global ecosystem. Where money and knowledge are not centered, but shared and open. Where there are no capitals, but networks.

There has been a start in Miami.

Let’s set the scene. Miami already Rank The world’s most prominent (nontraditional) startup hub and 2020 seen More big names in tech Migrating to Florida. Miami Mayor Francis Suarez is growing in flock with a hugely popular Twitter campaign.

Miami is already one of the world’s most prominent (nontraditional) startup hubs, and in 2020 Tech Migrate to Florida saw more big names.

These are signs of what business lovers already know globally. The world is ready for Miami as a pioneer of future tech hubs. Because the city is not just a launching pad for American startups with interests in Latin America. It is a strategic landing pad for global startups who want a presence in the Western Hemisphere.

Worldwide, international opportunities are growing for founders: there is greater connectivity and greater potential for emerging market entrepreneurs to produce life-changing products.

Where will those entrepreneurs be present? At the heart of global investor and entrepreneur networks, in true melting pots, and at the crossroads between mature and emerging markets.

This is why Miami is in focus right now, but it is only the first of many cities that will soon be part of this global trend.

Here’s why Miami is leading this new global grid of startup ecosystems.

1. Global technology is no longer focused – it is fragmented worldwide

Two-thirds of the world’s startup ecosystems are Outside north america. not only this, but 70% professional Believe technology power is moving away from Silicon Valley. Bloomberg Innovation Index bumped off United States down from the top spot in 2013, number 9 in 2020. Tech knowledge and power is growing in Europe and Asia, flourishing in cities such as Shanghai and Berlin.

Likewise, Microbe Will increase (we are already seeing one Growth in new businesses Being built around the world), and fewer of them will be zip codes.

So, when big businesses or VC firms leave Silicon Valley or outside of the United States / find out completely, they are not building more, they are showing us that Silicon Valley is no longer just MO. Emerging MO is borderless and connected: an inclusive network. This gives investors greater access to more distant business opportunities. This allows entrepreneurs to choose the most convenient place to build a company – and share enormous expertise – to save huge amounts of overhead.

2. You can build global companies from emerging hubs

Startups in emerging markets have always received a large proportion of the funding available to US startups. Which means that when the money dries across the board, they are under even greater pressure to come up with the most innovative solutions to survive.

Empowering these local entrepreneurs is the fact that today’s problems need local solutions – from health to logistics, these verticals all require inherent knowledge of domestic infrastructure and services.

The capacity here is huge. Emerging markets have the largest world population – China, India, Brazil, Mexico, Nigeria… – and the use of mobile Internet is slowly removing language and connectivity barriers. Is growing.

Are investors Already upset For the enormous value of emerging markets, from Asia to Latin America, especially as a strength of the US dollar. In just Q4 2020, VC investment in Latin America saw an increase of 93% in Q4 2019, according to Pitchbook.

What does this mean for an emerging tech hub? First, there will be more of them, more distributed and with more money. Second, we are going to see a strong flow of emerging market startups serving customers in the United States, offering services with proven traction rather than any.

Disruptive products from these companies develop and test on millions of users, who find fertile markets not only in the United States, but in other emerging markets with similar needs. Many such companies would like to use the United States as a strategic operational base, with engineering facilities at their headquarters.

This is because our founders, accelerators, investors and aid organizations have historical experience in internationalization, as well as connections around the world. So where will these foreign companies land – will they be interested in Denver or Austin, or as a well-connected city that has earned a name for itself as an international hub?

Miami is a landing pad where foreign startups can access both the United States and emerging markets with comparable trends. The The city has progressed To position itself at the crossroads between mature and emerging markets, creating an ecosystem that is inclusive (half of the population is foreign), prioritizes cooperation over individualism and encourages the arrival of new ones. As such, it will be a (working) model for diverse startup cities.

3. Money will follow

Amidst Silicon Valley’s “getaway”, some chatted Quick to point The hub is always strong because of one key feature: access to capital.

But investors will follow the best opportunities. Which means that technological investment will only become more global. Simply put, the concentration of wealth in Silicon Valley is inconsistent with the increasing demand for technology worldwide. Silicon Valley is not going to die, but the pie is getting bigger. And much of that capital is already going to emerging tech hubs.

Signs include US VC giants branching out into emerging regions – such as Sequoia’s first inauguration. European Office, And Softbank Funneling Billions In Latin America.

This means that American investors will favor areas where they can easily connect with global opportunities, such as Miami. Last year, VC investment in the Miami area came to an end $ 2.2 billionDespite the epidemic (compared) $ 1.4 billion All in Spain). But not only that – too much money is coming from investors in emerging markets.

In Latin America, local funds play a large role in supporting promising companies. In 2019, About 40% Recording of $ 4.6 billion VC dollars invested in Latin America involved co-investment with at least one Latin American investor. And from what we are seeing, regional investors are increasingly funding US-based organizations.

They would like to find – and others like them – ecosystems where they can connect with local and foreign founders, with whom they can promote partnerships in the markets.

Places like Miami need to house this type of network. South Florida already has globally minded accelerators and startup programs 500 startups, Plug and Play and TheVentureCity; And VC firms with international networks such as Ocean Azul, Endeavor Catalyst, Starlight Ventures, Level VC and now Softbank.

4. Miami is in a better position for future needs of startups

I am going to end by outlining Miami’s case as the American pioneer of the international connector startup hub.

Startups manufacture less every five years, and from the very first day go internationally to allow their products to be directly tested in more markets. It is possible for connectivity globally, and helps to live in a constantly outward-looking environment beyond our borders.

It also helps to be in a time zone that is shared by most of South America and is only five hours behind from London (San Francisco is only in the same time zone as the rest of the United States and Vancouver ).

Those who uproot their entire lives to find success, they want to be welcomed. They appreciate that the mayor of the city is happy to meet him for “Cafecto”, and the other founders are genuinely enthusiastic on his arrival. They do not want to land in an expensive city, where connections, money and background are required.

Miami reflects the future of the global startup hub. This won’t be the next Silicon Valley, because we don’t need another one. As the entrepreneurial world thrives in every corner of the world, emerging market companies will conquer the markets of the United States and Europe, and fort cities will make way for international networks.