2019 Perspectives on the Tri-Valley: The Intersection of Talent and Technology
In our fourth annual publication of The Mirador View: Perspectives on the Tri-Valley we are focused on the most essential element of the ecosystem: the people. The individuals and teams responsible for developing technology and services in our backyard that profoundly impact the world.
As the region is maturing, we are proud to report on the progress of our enterprising neighbors who are making their impression on our community.
Whether homegrown or transplanted, the businesses we've met with over the last 12 months are contributing immensely to the economy of the Tri-Valley. Each has left us optimistic, both in the short and long term, about the future of the Tri-Valley investment landscape.
From an investment perspective, 2018 was a banner year for the Tri-Valley.
In the last 12 months...
The Mirador Tri-Valley Index outperformed the S&P 500 by over 25%.
There was over $9 billion in M&A activity involving public companies in the Tri-Valley.
Tri-Valley entrepreneurs raised $590 million of venture capital funding.
It is important for our firm to familiarize ourselves with as many businesses in the Tri-Valley ecosystem as possible so we are able to take advantage of compelling investment opportunities for our clients.
By closely tracking many of the Tri-Valley's economic indicators, we are able to distill large amounts of data which ultimately drives our investment thesis and validates, or contradicts, our assessment of the region.
The following activity is fundamental to our thesis.
Performance of the Mirador Tri-Valley Index
M&A | Public & Private
Venture Activity | Money & Teams
This year we spoke with MTVX member Veeva Systems, Inc. to learn about the company's rise to a multi-billion dollar valuation, had a conversation with Evident.io about the successful ($300M) exit of a company grown in the Tri-Valley, and a chat with Lambda School, one of that nation's hottest startups that is receiving a great deal of funding.
The stories told by these businesses are characteristic of the dozens of similar ones thriving right now in our backyard.
Public Company Performance
Publicly traded companies headquartered in the Tri-Valley produced remarkable returns to shareholders in 2018, evidenced by The Mirador Tri-Valley Index which outperformed the S&P 500 by over 25%.
Merger & Acquisition Activity
A number of MTVX members were recently targets for M&A. The combined price paid in these deals was over $9 billion. We consider this to be validation of the valuable work being done here.
Private Companies
"The Tri-Valley is the fastest-growing Bay Area job zone" San Francisco Chronicle
Having raised $590 million in 2018, Tri-Valley businesses are now equipped with over half a billion dollars of additional capital. The deployment of this capital will have a tremendous impact on our economy; not only accelerating production but also, with more successful exits, indicating to those outside the Tri-Valley, what a extraordinary force the professionals in our region represent.
Where Do We Go from Here?
"This is the Bay Area's fastest-growing region, and it's not the one you think." - San Francisco Business Times
For us, the Tri-Valley is home. It is where we live, work and play. It is an impressive community, with a $42 billion GDP, one of the highest educated workforces anywhere in the world and venture capital investments reaching into the billions.
As economic conditions change in Silicon Valley and San Francisco we are seeing founders and later stage entrepreneurs migrate to the Tri-Valley; abandoning the western strongholds in favor of cheaper rents, specialized talent and a foundational STEM infrastructure that has spawned a considerable number of interesting companies.
Summed up nicely by the Bay Area Council Economic Institute:
"…the Tri-Valley punches far above its weight in terms of economic power."
For all the reasons cited in our report, we predict you will be seeing a lot more of the Tri-Valley in your news feeds as the inevitable expansion of the Bay Area is channeled through the 580/680 corridor.
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Information presented reflects the personal opinions, viewpoints and analyses of the employees of Mirador Capital Partners, LP, an SEC-registered Investment Adviser. The views reflected in the commentary are subject to change at any time without notice. Nothing herein constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Mirador Capital Partners, LP manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results. Visit us at miradorcp.com for more information.