Ever since the 1970s, Silicon Valley has been considered the main hub for innovation in the United States.

That’s because companies like Apple, Atari, and Oracle put down roots there, all in the same time frame. As more tech startups cropped up, the region grew – and today, the name “Silicon Valley” is practically synonymous with “startup-land.”

But according to newly published data, all that’s about to change. Companies are moving out of Silicon Valley in droves… a trend we’ve been tracking closely so that we know where to look for the next potential unicorn.

The mass exodus of tech startups from the Bay Area may have been catalyzed by the pandemic, which showed us all that nearly any job can be done from any location.

But the truth is, this was a long time coming. Silicon Valley has a certain allure, but it’s also one of the most expensive places in the country to do business. Startups in the Valley face high taxes, strict regulations, and an outrageous cost of living – with goods and services costing 27% more than the national average.

So where are all those future unicorns headed?

The latest data we’ve seen points to the Sunshine State.

Florida startups have raised just over $1 billion in funding so far this year – nearly four times the total raised in all of 2020. Here’s why…

No State Income Tax

Most small businesses and startups are exempt from state income tax in Florida. For an early-stage startup, that ultra-low tax rate can translate to hundreds of thousands or even millions in savings… and that money can go back into driving the business forward.

Lower Cost of Living

Not only do companies save on taxes in Florida… their employees do, too. There’s no state income tax for people who work in Florida. Combine that with a low average cost of living (and warm weather year-round), and you’ve got a prime location to attract top talent.

State Incentives

Florida’s Small Business Development Center Network estimated that Florida would need to create about 500,000 new small businesses and support expansion of existing businesses in order to continue economic growth and fulfill employment needs. Grants for qualified industries and economic development funds are also high on the list for small businesses to incentivize growth.

Diversified Population

Florida has rich and diverse demographics throughout the state that make it ideal for hunting and playing in new territories. Consumers are looking for people and companies that support diverse and inclusive opportunities. Our research shows South Florida stands out for industries like edtech, crypto, property tech, and NFTs.

Caribu: The Startup that Blazed This Trail First

Named one of Apple’s 15 Best Apps of 2020, Caribu is a Miami-based startup revolutionizing the way we read, play, and learn with our loved ones when they’re far away. Their video-call platform houses thousands of books, games, coloring sheets, and other activities in 10+ languages from leading children’s publishers like DC Comics, Sesame Street, Highlights, Mattel, and more. Co-founder and CEO Maxeme Tuchman is the first Latinx CEO to raise $1 million in equity crowdfunding.

We first recommended this startup to our readers back in 2019. Since then, Maxeme and her team have become celebrated trailblazers in the Florida startup ecosystem – which is why Forbes magazine named them one of the ‘Top Ten EdTech Companies to Watch’. We believe Caribu has the potential to hit a billion-dollar valuation if its current pace continues.

The bottom line? The days of needing a Silicon Valley connection to find the best deals are long over. Startups are spreading across the country at an unprecedented rate – bringing jobs and investment opportunities to diverse communities in every state in the U.S.

We’ll be monitoring this trend closely over the coming months, so keep an eye out for more companies with 1,000X potential… especially companies setting up shop in Florida.

We’ll be back soon.

The Research Team