SACRAMENTO, Calif., Jan. 28, 2016 /PRNewswire-USNewswire/ -- 500 Startups, a venture capital seed fund and startup accelerator, and the City of Sacramento, California announced today a partnership to develop the startup ecosystem in Sacramento, utilizing best practices from 500 Startups' pioneering work in Silicon Valley and around the world. The partnership will drive economic growth by encouraging entrepreneurs and startups to develop in the Capital Region of California. 500 Startups, founded by PayPal veteran Dave McClure and Google alumna, Christine Tsai, is the most prolific seed investor in the world, with over 1,500 investments globally in the past five years. In working with 500 Startups, Sacramento will be embarking on an unprecedented expansion of its tech sector.
Sacramento is the gateway to Silicon Valley, and is fast becoming California's next technology hub. This partnership will increase the region's attraction of foreign direct investment, all while helping California retain businesses along with its young, highly educated workforce.
"California is one of the most profitable states in the country to do business. And Sacramento is where leading-edge, visionary initiatives like the 500 Startups partnership will succeed," said Barry Broome, President and CEO of the Greater Sacramento Area Economic Council. "Sacramento is already making game-changing advances in the life sciences and leads the country in agribusiness innovation. Our tech sector is poised to do the same thing."
500 Startups' portfolio of investments includes over 1,500 companies across more than 50 countries, managing over $200 million in assets across several investment funds. Its strategy is to spread seed capital across a diversified portfolio of early-stage startups globally. 500 Startups has engaged in similar strategic partnerships around the world to help develop entrepreneurial ecosystems.
"As cost of living in the San Francisco Bay Area continue to rise, it makes sense for us to look at other large metro areas in California, like Sacramento, that are rich in entrepreneurial talent," said McClure. "Partnering with regional governments is a strategic win for 500 Startups and we've been successfully employing this model globally in Norway, Malaysia, Korea, Taiwan, and more locally in Miami."
"We have great confidence in our combined ability to help businesses stay in California," said Sacramento Mayor Kevin Johnson. "When you're focusing on your city's tech sector, you need to speak the language of the tech sector. This type of partnership does that in a big way."
With its shared workforce of 208,000 employees, Greater Sacramento and the Bay Area have always enjoyed a strong collaboration. San Francisco, San Jose, and Sacramento create an innovation triangle. The Sacramento-500 Startups partnership fortifies and strengthens this relationship. Sacramento provides easy access to the Bay Area, while allowing those who commute the ability to enjoy the Capital Region's low cost of living. The Greater Sacramento region boasts a 42 percent millennial working-age population, higher than Seattle, Portland, San Francisco, or San Jose. With 18,000 people moving to Sacramento from the Bay Area each year, it is the number two relocation destination for millennials leaving the Bay Area, second only to Seattle.
"Sacramento has the tools, the infrastructure, and most importantly, they understand what it takes to support and fortify tech partners," Tsai said. "We are looking forward to watching this partnership grow and fostering another tech hub for entrepreneurs."
SOURCE Greater Sacramento Area Economic Council