Many long time residents of the State of California & their companies are moving out of state.
Successful VC entrepreneurs are moving to place considered to not have California constraints.
Texas deemed to provide new & better opportunities without the problems &“baggage” California seems to have.
An Op Ed in the WSJ this week prompts this digestion of California issues that is worthy of action.
Joe Landale, One of founders of the venture capital company, 8vc, opines what & why
Here are the California problems & ‘baggage” that drove this VC team to the promises of Texas.
Police & Public Safety:
Criminal-justice reforms & district attorneys are taking a toll on urban life in California.
Wildfire smoke that have blanketed California cities severely impacted living.
The electricity was turned on and off multiple times, as in Third World countries.
These power outages caused people to be stressed and unproductive.
Much of problem caused was direct result of California government incompetence.
Lack of Responsiveness:
In the early days of pandemic, 8VC reached out to the mayor of San Francisco & city staff.
Sought to clarify rules to allow critical employees to work on Covid-19 testing & development of therapeutics.
No response or interaction from the City or California government
California’s restrictive zoning laws make it nearly impossible for essential low & middle-income workers to live near major cities.
Problem compounded by California government that is beholden to public-employee unions.
Spending on housing is out of control.
A broken environmental review process means it takes a decade of paying lawyers to build anything.
Legislation makes effort to solve the problems but little solutions.
Politics in the state of California are in many ways closed off to different ideas.
Many gave grown weary of California’s intolerant far left.
Opponents are demonized rather than discussion of honest differences of opinion.
SOLUTIONS: [ Joe Lonsdale Seeks in Austin instead of San Fran]
City gov’t should have responded to surging harassment and property crime in SF.
In view of San Francisco’s property-crime rate is now the nation’s highest.
In Texas, permissive zoning allows every company staff to live close to work.
Texas has low crime, less traffic, tech hiring base, low taxes, & cheaper real estate.
Texas has its own energy grid, with a plentiful and diverse supply.
SF city didn’t respond to 8vc Outreach & request for solutions. Texas does.
Government officials in Texas, by contrast, care about business. Return calls.
Permissive zoning allows 8vc company staff to live close to work.
Can spend time with friends and family instead of enduring grueling commutes.
California’s intolerant far left, which would rather demonize opponents than discuss honest differences of opinion.
Companies Are Moving:
Prolific entrepreneurial people California have moved to Texas.
Others have left for Miami, Nashville, Las Vegas and other great American cities.
Six portfolio companies are now based in Austin & employ hundreds of people.
“ I will continue investing in Silicon Valley startups and fighting to help the state.”
I’m optimistic that over the long run
California can return to the values that once made it the dynamic center of global technology entrepreneurship.
But until priorities change, the state will keep losing its top builders and creators.” – Joe Lonsdale, 8vc
Entrepreneur Joe Lansdale Assessment of Why the VC moved to Austin.
“California, Love it or Leave it” – WSJ Opinion Page, 11 16 2020 – https://www.allsides.com/news/2020-11-15-1817/california-love-it-and-leave-it