By the Numbers
For decades, the San Francisco Bay Area has been home to a majority of the leading tech companies in the US, earning the nickname Silicon Valley.
In recent years, however, a growing number of those companies have left the West Coast, and tech startups are setting up headquarters in other states.
44 | The number of states that charge corporate income tax. |
Nevada, Ohio, South Dakota, Texas, Washington, and Wyoming do not charge corporate income tax, although four of those states—Nevada, Ohio, Texas, and Washington—do have a gross receipts tax.
Source: files.taxfoundation.org/20210202165820/State-Corporate-Income-Tax-Rates-and-Brackets-for-2021.pdf
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| The ranking that Utah earned in Seek Capital’s list of the best states to start a business. |
This rank was based on a variety of factors, including employment statistics, cost of living, and business tax climate. Forbes also ranked Utah third in its most recent “Best States for Business.”
Sources: forbes.com/sites/andrewdepietro/2019/11/13/best-worst-states-entrepreneurs-2020/?sh=34cbfbbc46a6 and forbes.com/best-states-for-business/list/#tab:overall
6,500+ | The number of startup and tech companies in Utah. |
These companies stretch across the state—from Logan to St. George—according to Silicon Slopes, a statewide organization and the official moniker of Utah’s startup and tech community.
Source: newsroom.siliconslopes.com/about
25% | The approximate percentage of full-time employees who actually work in the cities where their tech companies are headquartered. |
According to data from Apple, Google, Intel, Cisco, Uber, and Salesforce, workers have become more geographically dispersed as companies grow, with increasing numbers of employees in flexible work schedules. One forecast estimates that 25 to 30 percent of the workforce will be working from home multiple days a week by the end of the pandemic.
Sources: news.crunchbase.com/news/sf-bay-area-silicon-valley-startup-hq-exits/ and globalworkplaceanalytics.com/work-at-home-after-covid-19-our-forecast
74 | The number of companies that moved their headquarters out of California in the first six months of 2021 alone. |
For at least a decade, Texas has been the top destination for tech companies leaving the Golden State. When identifying what they value most in a headquarters location, CEOs point to tax policy, regulatory climate, and talent availability.
Source: newsnationnow.com/us-news/west/companies-are-rapidly-leaving-california-study-finds-heres-where-they-are-going
$25+ | The Billions of dollars spent on venture capital funding in the San Francisco Bay Area. |
Despite the companies leaving the state, venture capital spending in California remains strong. Of the $69 billion that US-based venture funds invested in startups in the first quarter of 2021, more than one-third was spent in the Bay Area. That amount is more than the next three locations—New York, Boston, and Los Angeles—combined.
Source: wired.com/story/silicon-valley-dead-not-according-to-venture-capital
