Why Is Silicon Valley A Start-up Heaven?

Silicon Valley is a global hub for entrepreneurs and inventors who take their original ideas to the ground with a high probability of success.

Located in the Southern San Francisco Bay Area in Northern California, USA, Silicon Valley is a global centre of high technology and innovation. As per the Brookings Institution, the San Jose metropolitan zone, the lifeline of Silicon Valley, ranks third in terms of GDP per capita globally (after Zurich, Switzerland and Oslo, Norway).

The term “silicon” actually refers to many innovators and manufacturers in the California region who specialised in silicon-based MOS (metal-oxide-silicon) transistors and integrated circuit chips initially. Today, the area is home to many large technology companies globally, including 30 Fortune 1000 companies headquartered there and thousands of start-ups.


Silicon Valley has the necessary infrastructure, capacity resources and a growing market for manufacturers, making it an ideal place for start-ups in a technology-driven world.

Silicon Valley – A Global Centre for Start-up Entrepreneurship and Financing

Silicon Valley accounts for one-third of total US venture capital, making it a central hub for innovation and start-up ecosystems. Historically, Silicon Valley has developed a vast majority of silicon-based integrated circuits, microprocessors, and microcomputers, among other things. In 2013, the industry employed about a quarter-million of the United States’ IT workforce.

The term Silicon Valley is often used as a synonym for the American high-tech economy. The name is synonymous with research and high-tech work. In this way, similar sites, research parks and technology centres worldwide with a similar structure have also been modelled after this peculiar region. Most notably, the Indian city of Bengaluru is called the ‘Silicon Valley of India‘. 

Silicon Valley is a haven to some of the world’s biggest companies, including the following:

Apple, Inc.
Facebook, Inc. 
Adobe Systems 
Cisco Systems

Why is Silicon Valley Suitable for Start-ups?

Silicon Valley has the necessary infrastructure, capacity resources and a growing market for manufacturers, making it an ideal place for start-ups in a technology-driven world. In the region’s hi-tech environment, start-ups can easily host local systems because they have all the necessary connections. They can easily find skilled workers to form an effective and highly empowered team, as there is no dearth of software developers, programmers and operators in Silicon Valley.

More so, Silicon Valley is known for its tenants and products as it has become an ideal market for goods tech-transactions in the world. The passion for innovation, collaboration, and entrepreneurial adventure run throughout the everyday life of the world’s tech capital. 

Top 5 Silicon Valley Startups in 2021

Given the region’s success boom, at least one Silicon Valley start-up joins the significant leagues every year. In 2020 and early 2021, many start-ups are en route to this oath, some of which are listed below.

Nuvia, Inc.

Nuvia, Inc. is a silicon design company dedicated to developing robust, low-energy consuming computer processors. It is located in Santa Clara and was founded by a former Apple designer. Its recent $ 1.4 billion acquisition by Qualcomm bears testimony to the success of Silicon Valley merchants.


Located in Redwood, Netdata provides an open-source tool that tracks the performance metrics required for systems, applications, and other digital infrastructure components. It helps monitor disk activity, CPU usage, website usage and bandwidth usage and visualises it in a graph to run the diagnosis.


Located in Palo Alto, Wing is a delivery service platform. With operations in Australia, Finland and the United States, its application provides delivery services for essential goods like medicine, groceries and food.


Productiv is also based in Palo Alto and provides insights into daily business and application analytics. It assists IT managers to reduce costs and increase business efficiency.


This start-up focuses on teenagers as its target maker and allows them to use mobile banking services. It enables them to send and accept money directly from their Step card, accessible track services and expenses management.

The above mentioned are some of the deductions why Silicon Valley has a booming start-up business sector. It is safe to say that the spirit of innovation and collaboration keeps growing in Silicon Valley to meet the needs of entrepreneurs with high-tech solutions quickly.

Aakash Sharma
Aakash Sharma
Aakash writes on Startup Ecosystem, Policies, Legal and Regulatory aspects of business planning. An alumnus of Delhi University, he is assistant editor at Dutch Uncles.



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