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Day 9 – Q 5.Why are so many start up companies located in the Silicon Valley? Examine.

5. Why are so many start up companies located in the Silicon Valley? Examine.  

सिलिकॉन वैली में इतनी सारी स्टार्ट अप कंपनियां क्यों शुरू हो रही हैं? जांच करें।


Introduction – you can write about the location of Silicon Valley.

Body –write about what makes Silicon Valley a destination choice for tech start – ups like skilled labours like the preferable laws, better chances of getting funding etc.

Conclusion – write a suitable conclusion


Silicon Valley is the nick name for northern California area in US. It derives its name from large number of software and hardware companies based there primarily working on silicon chips. Indian Silicon Valley is also known as Bengaluru.


The reason being so many start-ups companies located in Silicon Valley is as follows –

  1. Closer relationship between academia, the private sector, and government

These 3 powerful sectors converge together to create an environment that’s unlike any other in the world. With Stanford University and Berkeley at the epicentre of the valley, there’s a permanent flow of new entrepreneurs and talented tech specialists being minted each year. When one  takes into account all of these factors – and then integrate them with the fact that launching a business is fairly easy under California law, including the fact that non-compete agreements are void in the state – one can see why businesses get started and thrive in Silicon Valley.

  1. Great number of wealthy investors and funding institutions

The amount of both personal and institutional wealth in the valley makes it the best location for business growth. There are thousands of reach investors in the area who organize as angel investors and venture capitalists, looking to invest their money to work instead of paying hefty taxes on earnings to the U.S. government annually. As a result, they want to pour funds into a variety of different businesses, with the hope that a handful will return high dividends in the following years.

  1. Availability of amenities

The amazing access to attractive business amenities in the area is also worth mentioning. The valley itself and nearby San Francisco (where many young techies make their homes) have tons of amenities that make the Bay Area an attractive destination for investors, conventions, and more. These amenities include world-class hotels at surprisingly fair prices, large conference centres, some of the world’s most highly-rated restaurants, famous sports teams and lots of entertainment options.

  1. Encouragement from past success stories

Much of Silicon Valley’s present success is rooted in the incredible past success stories. As both an entrepreneur or investor, there’s something about being surrounded by success stories that contribute to imagining future victories for beginners. It’s as if the accomplishments of past entrepreneurs makes the thought of obtaining great results further down the road, that much more palpable.

  1. Joint industry strength – presence of various types of industries in close proximity give a combined support .
  2. Climate – climate is very pleasant which always attract the capital and work force. For eg – it is never sub-zero like New York, Chicago , same thing with the Bangalore.

Challenges of silicon valley

  1. Immigration
  2. Various security threats
  3. Environmental degradation
  4. Loss of local culture and identity


In present era, though innovation is no longer geographically centred, start-ups are still concentrated in limited pockets. A free and slightly supporting environment can create more no of Silicon Valley’s across globe.

Best answer – Mahismati

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