The fourth one.
We’re likely all aware and have seen the statistics around how people in the US are migrating to different cities, hyper-sped by the adoption of remote work since Covid hit in 2020. The most well known are the moves from SF, NYC, and LA to cities like Austin, Miami, Nashville, Tampa, and Denver. I myself, and someone who made such a move and came to Miami after living in NYC and LA for 7 and 2 years, respectively. That’s why I want to focus this essay on why Miami is in such a pivotal moment in its history and can play a major role in the economic growth of not just the country but this side of the world.
The Magic City
The inspiration to write about Miami is strong after as we wrap up “Miami Tech Month,” where we’ve seen thousands of tech entrepreneurs, thinkers, and investors come to the city to discuss the present and future of tech in Miami. The themes were extremely clear.
There are a host of startup founders looking to build in Miami
There are investors who want to specifically fund businesses in Miami and build the ecosystem
Momentum is building
People wanting to live in Miami is no surprise - it’s warm, it’s culturally diverse, there is no state income tax, etc… The shift we’re seeing happening now is that people want to build their business here and not just move once they’ve “made” it and had an exit. Every week, I meet more and more startup founders in health tech, roofing, fire safety, deep learning, manufacturing, and more. The city is also doing a lot to help startup founders with dozens of accelerators made available to support founders from idea to launch to scale. World renowned accelerator, Techstars, has an office here where they are continually preparing and launching batches of companies several times a year. Venture Miami, which is part of the Mayor’s office, is dedicated to making Miami the “Capital of Capital” and their involvement in holding educational events, brining investors and founders together, was seen on display throughout Tech Month.
The standout difference between Miami and other cities with your entrepreneurial talent is the vast number of experienced founders. Many of the people starting companies in Miami, already have (or have had) successful businesses in Latin America and are either expanding or building something entirely new in the US market. When you consider that 70% of the Latin American population is unbanked and that many founders in Miami are building for the growing Latin American economy, it puts in perspective how much room there is to grow.
There are gaps that are slowing the Miami progress from where it could be. The problems are well known but are difficult to overcome. Entry-level talent is the first issue often mentioned. Cities like New York, LA, and San Francisco have dozens of world-renowned universities within their zip codes which usher tens of thousands of bright minds into their relevant city’s startups every year. Miami has some great schools such as Miami University but there hasn’t been an emphasis on degrees like Computer Science or Business Management until recently and the effects take several years to manifest. Well aware of this gap, Mayor Suarez has done some incredible work in bringing Universities to Miami. Northeastern University and Babson, are examples of highly sought after schools that now have a campus in Miami.
Mentorship was another major theme of areas that need improvements. One of the many reasons The Bay Area is The Bay Area is because founders who build incredible new companies in the area stay there and then mentor and advise younger entrepreneurs on their journey. Of course, this took decades to produce organically and would likely happen in time as the Miami economy rises but it can be sped up. In the popular book “AI Superpowers: China, Silicon Valley and the New World Order” Kai-Fu Lee explains in detail how China reconstructed their own version of Silicon Valley to speed their innovation and economic growth exponentially. It took private and public cooperation along with large amounts of capital but they did create something astounding and the tech companies produced by this system have quickly outpaced the rest of the world’s in terms of number of users and functionality. It’s difficult to speed this process but it’s necessary.
The Future
It seemed furtuitous that during Miami Tech month, some major developments toward the ecosystem were announced. First, Apple announced a new 42,000 square foot office development in the Coral Gables area of Miami. Then, just a few days later, a16z and Sam Altman invested in Miami company Exowatt, garnering national attention. This is adding fuel to the fire - in 2023, the Miami-Ft. Lauderdale area ranks 3rd in the country for investment deals, at a time when startup funding is at its extreme low. There is clarity in where Miami wants to go. Miami is a proud city that seems to know the limitless potential ahead of it and knows technology companies are a key pillar in getting there.
Miami to the moon!
