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The pandemic is the last straw for some San Francisco-based tech leaders.
Startup investor Keith Rabois recently revealed plans to leave the tech hub in favor of Miami, telling Fortune, “I think San Francisco is just so massively improperly run and managed.” Now Dropbox CEO Drew Houston and Splunk CEO Douglas Merritt reportedly plan to make Austin their new permanent residences, per The Information, and Brex co-founders Henrique Duburgras and Pedro Franceschi have landed in Los Angeles.
Oh, and Palantir co-founder and 8VC Founding Partner Jon Lonsdale has decamped for Austin.
Each has his own motivations—be it the city’s management, the wildfires, the high taxes, or some combination of all of the above—but here’s a notable excerpt from Lonsdale’s op-ed in the Wall Street Journal from earlier this month that explains much of his.
“Politics in the state is in many ways closed off to different ideas. We grew weary of California’s intolerant far left, which would rather demonize opponents than discuss honest differences of opinion.”
Lonsdale’s op-ed tells us more than just the fact that people are leaving the city. While more exits from San Francisco will happen, Lonsdale notes that “few top venture capitalists consider living anywhere other than California and a handful of global financial centers.” While exits from the crowded and troubled city are splashy, it’s worth meditating upon who stays to understand the full impact of the changes on the city.
RETHINKING THERAPIES MANUFACTURING: Botech investments have gone through the roof in recent months. Adding to the deluge is RESILIENCE, a company seeking to speed up the manufacturing of therapeutics. On Monday, the company came out of stealth with some $800 million in capital from investors led by ARCH Venture Partners and 8VC. Also named as investors were GV and NEA.
“COVID-19 has exposed critical vulnerabilities in medical supply chains, and today’s manufacturing can’t keep up with scientific innovation, medical discovery, and the need to rapidly produce and distribute critically important drugs at scale,” Robert Nelsen, RESILIENCE’s chairman and managing director at ARCH Venture Partners said in a statement. “We are committed to tackling these huge problems with a whole new business model.” Read more.
HOUSEKEEPING: My colleague, Anne Sraders, who has kindly helped curate the deals section today, will be taking over Term Sheet tomorrow. Please send any deals to her at [email protected].
Anne Sraders curated today’s Term Sheet.