ARTICLE
A curious customer asked, why did the new shoe store owner decide to open his store across the street from a competitor? The reply was a sharply toned, “So I can keep an eye on what he displays on his window storefront and I can offer a better (different) choice to my customer.” The marvel of Silicon Valley’s growth in the 1960s throughout the 20th century and to today can be summarized for three reasons: Location, Location and Weather. 1) The link between their Universities (UC Berkeley, Stanford, Santa Clara and San Jose State University) where the next generation of talented engineers, software designers and techies flow from the classroom to the board room of companies. 2) The link to Venture Capital funders who invest in early start-ups that become global leaders in the industry. Think HP, Intel and Apple to Google and Facebook and Tesla. 3) The Bay Area climate that draws us to the region. The same ingredients are the reasons we see a resurgence in the tech sector growth in Santa Cruz County. Our link to UCSC, the researchers and the next generation talent pool. The surprising local VC market that wants to build Santa Cruz as a tech center and yes, the magic of our Santa Cruz climate, the ocean and the mountains. In the past five years we’ve seen the dynamics of new starts ups and incubators forged by the University. The Silicon Valley Business Journal highlighted the growth at Looker in an article this week. Looker is planning to grow its Santa Cruz headquarters yet again as it ramps up hiring. The 5-year-old data analytics startup is signing up for another floor in the building it leases for its headquarters at 101 Church St. in downtown Santa Cruz. (Just imagine five years earlier, Looker merged from the back room of Cruzio.) The additional 17,000 square feet of space will allow it to hire approximately 100 additional employees, CEO Frank Bien told the Silicon Valley Business Journal, across all parts of the business including engineering, sales and business development, marketing, finance and HR. “We’re going to continue to build more product and focus on every customer, one at a time, and hopefully that leads to more growth," Bien told the Business Journal. "This growth and scale becomes critical - we need to maintain it without the wheels of the bus coming off.” “We are a tech company that could be anywhere and we’ve chosen to be here in Santa Cruz because having the headquarters here has worked well for us,” Bien said. “We can get substantially larger in this building and there’s other space in Santa Cruz as well - there’s a lot of potential here.” Looker co-founder and CTO, Lloyd Tabb, said the company has been able to attract talent both locally and from over the hill because Santa Cruz offers an attractive reverse commute from Silicon Valley. “I’ve noticed a bunch of local kids who tried the San Francisco thing and didn’t like it, and they’ve liked Santa Cruz and its lifestyle" he said. "They’re like ‘yeah, I can have my life here and work there.’” Another merging development is in the biotech space, again because of the partnership formed at the University. The Santa Cruz Sentinel’s Calvin Men reported this week that CEO Dan Heller of biotech company, Two Pore Guys, is gearing up for the company’s accelerated growth. The company just expanded the office space to 16,000 square feet and plans on doubling that space by year’s end. While the company is at 72 employees now, executives are forecasting 100 by the end of the year and 200 by June. “Biotech is easier here because of the school,” Heller said, referring to UC Santa Cruz. The biotech startup recently raised $24.5 million in venture capital and is the one of the latest examples of a biotech business that is on the verge of an expected boom. The full story can be read here. The ebb and flow of the tech and biotech growth in Santa Cruz County follows a predictable pattern. When the Silicon Valley tech sector takes off, other areas around the country and closer to home (Santa Cruz) cherish in their economic boom. The question that arises after a lengthy growth period: Is there a tech bubble on the horizon and when will it burst? That pattern usually repeats itself every few years: 1992, 2001 and 2009 are examples. We are seeing signs that California’s growth is slowing as reported last week: SC Chamber eNews 9-21-17 How do we react locally to ensure that our economy - largely based on agriculture and tourism - can support surges in sectors like tech, health care and others? So much of the success or failure of new growth businesses falls on the community at large. Will Santa Cruz County policy makers work with businesses to ensure the resilience of our economy? Will changing tax and planning regulations stifle growth? Can our infrastructure needs keep up with the demands? Today, the county and city’s economic development departments have actively partnered with newer and long-time established businesses on projects and programs which foster a brighter future - creating jobs and producing economic benefits to our region. The industrial and commercial property developments on the West side of Santa Cruz is an example. The University’s expansion on Delaware Avenue (University Station) and the formation of incubators strengthen the tech and biotech economy. The formation of tech related business groups like Santa Cruz Works, New Tech Meet-up, and by extension the Santa Cruz Tech Beat provide weekly news reports (a snapshot) of the industry. The new economy revolves around companies that have access to high-speed internet, talent, and a community that provides opportunities for economic and social growth. The tech sector in Santa Cruz enjoys access to these vital elements and is driven by the ability to work anywhere, anytime. There is a need to ensure other rural areas of the county also have that access. Today, broadband is the reincarnation of the telephone of the early 20th Century. But it is more than a communication tool. For many, it is the backbone that runs their business. As stated earlier, our proximity to Silicon Valley creates opportunities for investment and inspiration, yet we maintain our unique Silicon Beach aesthetic. Our tech community is well integrated and Santa Cruz New Tech Meet-up participants gather monthly to celebrate successes and discuss new developments. What we learn through those projects, programs and discussions regarding the vibrancy of Santa Cruz – is that the most important strength is in its people. The crossroads for change are upon us again. The debate about our community’s future will be driven by the outcome of our infrastructure - from access to broadband, educating our youth for next generation jobs, housing, transportation and water that paints a sustainable future. Recall where we started when companies like Netflix, Texas Instruments, SCO (Santa Cruz Operation), Seagate, and Borland were among the tech companies that started in the Santa Cruz region. Founded in 1963, Plantronics made the first headset used in outer space, and made history when Neil Armstrong walked on the moon and uttered the legendary words: "That's one small step for man, one giant leap for mankind" through a Plantronics headset that went on to be worn by astronauts during the NASA shuttle missions. Today, Plantronics continues to be a leader in the audio communications and wearable industries. This anchor company continues to pave the way for Santa Cruz startups. Tomorrow will bring new challenges and opportunities. We should welcome the growth of technology companies here and explore ways to build stronger partnerships with other businesses and industries that form the fabric of Santa Cruz County.
A curious customer asked, why did the new shoe store owner decide to open his store across the street from a competitor? The reply was a sharply toned, “So I can keep an eye on what he displays on his window storefront and I can offer a better (different) choice to my customer.”
The marvel of Silicon Valley’s growth in the 1960s throughout the 20th century and to today can be summarized for three reasons: Location, Location and Weather. 1) The link between their Universities (UC Berkeley, Stanford, Santa Clara and San Jose State University) where the next generation of talented engineers, software designers and techies flow from the classroom to the board room of companies. 2) The link to Venture Capital funders who invest in early start-ups that become global leaders in the industry. Think HP, Intel and Apple to Google and Facebook and Tesla. 3) The Bay Area climate that draws us to the region.
The same ingredients are the reasons we see a resurgence in the tech sector growth in Santa Cruz County. Our link to UCSC, the researchers and the next generation talent pool. The surprising local VC market that wants to build Santa Cruz as a tech center and yes, the magic of our Santa Cruz climate, the ocean and the mountains.
In the past five years we’ve seen the dynamics of new starts ups and incubators forged by the University. The Silicon Valley Business Journal highlighted the growth at Looker in an article this week. Looker is planning to grow its Santa Cruz headquarters yet again as it ramps up hiring. The 5-year-old data analytics startup is signing up for another floor in the building it leases for its headquarters at 101 Church St. in downtown Santa Cruz. (Just imagine five years earlier, Looker merged from the back room of Cruzio.) The additional 17,000 square feet of space will allow it to hire approximately 100 additional employees, CEO Frank Bien told the Silicon Valley Business Journal, across all parts of the business including engineering, sales and business development, marketing, finance and HR.
“We’re going to continue to build more product and focus on every customer, one at a time, and hopefully that leads to more growth," Bien told the Business Journal. "This growth and scale becomes critical - we need to maintain it without the wheels of the bus coming off.”
“We are a tech company that could be anywhere and we’ve chosen to be here in Santa Cruz because having the headquarters here has worked well for us,” Bien said. “We can get substantially larger in this building and there’s other space in Santa Cruz as well - there’s a lot of potential here.”
Looker co-founder and CTO, Lloyd Tabb, said the company has been able to attract talent both locally and from over the hill because Santa Cruz offers an attractive reverse commute from Silicon Valley. “I’ve noticed a bunch of local kids who tried the San Francisco thing and didn’t like it, and they’ve liked Santa Cruz and its lifestyle" he said. "They’re like ‘yeah, I can have my life here and work there.’”
Another merging development is in the biotech space, again because of the partnership formed at the University. The Santa Cruz Sentinel’s Calvin Men reported this week that CEO Dan Heller of biotech company, Two Pore Guys, is gearing up for the company’s accelerated growth. The company just expanded the office space to 16,000 square feet and plans on doubling that space by year’s end. While the company is at 72 employees now, executives are forecasting 100 by the end of the year and 200 by June.
“Biotech is easier here because of the school,” Heller said, referring to UC Santa Cruz. The biotech startup recently raised $24.5 million in venture capital and is the one of the latest examples of a biotech business that is on the verge of an expected boom. The full story can be read here.
The ebb and flow of the tech and biotech growth in Santa Cruz County follows a predictable pattern. When the Silicon Valley tech sector takes off, other areas around the country and closer to home (Santa Cruz) cherish in their economic boom. The question that arises after a lengthy growth period: Is there a tech bubble on the horizon and when will it burst? That pattern usually repeats itself every few years: 1992, 2001 and 2009 are examples. We are seeing signs that California’s growth is slowing as reported last week: SC Chamber eNews 9-21-17
How do we react locally to ensure that our economy - largely based on agriculture and tourism - can support surges in sectors like tech, health care and others? So much of the success or failure of new growth businesses falls on the community at large. Will Santa Cruz County policy makers work with businesses to ensure the resilience of our economy? Will changing tax and planning regulations stifle growth? Can our infrastructure needs keep up with the demands? Today, the county and city’s economic development departments have actively partnered with newer and long-time established businesses on projects and programs which foster a brighter future - creating jobs and producing economic benefits to our region. The industrial and commercial property developments on the West side of Santa Cruz is an example. The University’s expansion on Delaware Avenue (University Station) and the formation of incubators strengthen the tech and biotech economy.
The formation of tech related business groups like Santa Cruz Works, New Tech Meet-up, and by extension the Santa Cruz Tech Beat provide weekly news reports (a snapshot) of the industry. The new economy revolves around companies that have access to high-speed internet, talent, and a community that provides opportunities for economic and social growth. The tech sector in Santa Cruz enjoys access to these vital elements and is driven by the ability to work anywhere, anytime. There is a need to ensure other rural areas of the county also have that access. Today, broadband is the reincarnation of the telephone of the early 20th Century. But it is more than a communication tool. For many, it is the backbone that runs their business.
As stated earlier, our proximity to Silicon Valley creates opportunities for investment and inspiration, yet we maintain our unique Silicon Beach aesthetic. Our tech community is well integrated and Santa Cruz New Tech Meet-up participants gather monthly to celebrate successes and discuss new developments. What we learn through those projects, programs and discussions regarding the vibrancy of Santa Cruz – is that the most important strength is in its people. The crossroads for change are upon us again. The debate about our community’s future will be driven by the outcome of our infrastructure - from access to broadband, educating our youth for next generation jobs, housing, transportation and water that paints a sustainable future.
Recall where we started when companies like Netflix, Texas Instruments, SCO (Santa Cruz Operation), Seagate, and Borland were among the tech companies that started in the Santa Cruz region. Founded in 1963, Plantronics made the first headset used in outer space, and made history when Neil Armstrong walked on the moon and uttered the legendary words: "That's one small step for man, one giant leap for mankind" through a Plantronics headset that went on to be worn by astronauts during the NASA shuttle missions. Today, Plantronics continues to be a leader in the audio communications and wearable industries. This anchor company continues to pave the way for Santa Cruz startups.
Tomorrow will bring new challenges and opportunities. We should welcome the growth of technology companies here and explore ways to build stronger partnerships with other businesses and industries that form the fabric of Santa Cruz County.