Welcome to Miami
While it may be easy to dismiss the latest “tech-odus” headlines as the pandemic consequence du jour, the desire for more business-friendly environments and the transition to remote work has launched an important conversation on the rise of alternative cities, or “alt-cities,” for the modern tech and finance industries. Fed up with crippling regulatory legislation and high operating costs, and liberated by the transition to remote work as a consequence of the COVID-19 pandemic, many business leaders from the traditional hubs of San Francisco and New York have dropped anchor in the “Magic City” of Miami. Their moves have ushered in a wave of press in recent months.
The buzz and attention on Miami’s rise is well-deserved. The city holds a special place in my personal history and the history of Introhive, the customer relationship management (CRM) automation platform I launched with co-founders in 2012. Feeling uninspired after seven years in Washington D.C., I explored alternative locales that would provide me a more affordable cost of living with the added bonus of being in a tax-advantaged state. If Florida, a state with no individual income tax and a comparatively modest median housing cost, was a good broad target, then Miami was the bullseye. With its bright sunshine and beach access, rich Latin influences, and fun-loving and inclusive culture, Miami proved to be the ideal city to relocate to. And as a business leader, I’m impressed with how the tech and tech-adjacent networks have developed here over the course of the past decade.
Miami’s cachet as an alt-city tech hub is not surprising given the business-friendly approach of the local political establishment. This is largely the doing of mayor Francis X. Suarez, Miami’s greatest ambassador and tech enthusiast who made waves in December 2020 with his “How can I help?” Twitter outreach to the disillusioned investors and innovators of Silicon Valley. In recent days, he’s discussed with Tesla CEO Elon Musk the possibility of building traffic-alleviating tunnels under city streets. He’s even gone so far as to consider embracing cryptocurrency within Miami’s treasury infrastructure, a forward-thinking approach. Suarez’s efforts are matched by other government agencies like the Miami Downtown Development Authority, an economic-development office campaigning to bring large tech and finance firms to the area. This active recruitment and support of innovation is a far cry from the antipathy some tech giants have faced in California, especially in the wake of pandemic-related shutdowns.
Adding to the chorus of cheers from City Hall, big finance firms are signaling their interest in South Florida. Blackstone and Starwood Capital have announced plans to launch outposts in the region, and reportedly Goldman Sachs and Icahn Enterprises are not far behind them. Additionally, a recent cadre of investor transplants made South Florida their home in 2020 and are calling on their colleagues to do the same. This includes Keith Rabois (Founders Fund), David Blumberg (Blumberg Capital), Shervin Pishevar (Sherpa Capital), and David Goldberg (Alpaca VC), among others. Crucially, these investors are not just moving to Miami but supporting the local startup ecosystem as well. According to Crunchbase, the greater Miami area captured nearly $2 billion dollars in venture funding in 2020. It is this commitment to investing in the region, not just basking in its sunshine, that will be necessary for continued growth if the city seeks to compete with the San Francisco Bay Area, which captured $42 billion in venture dollars last year, PitchBook reported.
Does the growth of alt-cities like Miami signal the end for traditional tech and finance centers in San Francisco and New York? No. Industry roots and loyalties run deep, and these are two beautiful and historic economic centers whose fortunes will ebb and flow as they have for decades. But is the growth of places like Miami a net positive for the business community? Yes. Industry roots and networks can branch and prosper elsewhere. The rise of Miami demonstrates that innovation in the 21st century can happen across the country, not just in a few key regions. It is also a reminder to state and local officials that adding more regulation and tax friction to the business sector and to high-earning residents has costly consequences for state coffers. When hedge-fund billionaire David Tepper left New Jersey for Miami in 2016, he triggered alarm-bells for the state’s budget which — given his wealth — took a significant hit in tax-revenue. Forecasting and preparing for similar losses will be especially important for states like California and New York if they do not successfully counter Florida’s siren song.
The migration to Miami, especially over the course of the past year, has changed the talent landscape dramatically since I first arrived in 2012. As we grew Introhive during the early years, it was difficult to find much depth in the talent pool, so I led my teams remotely as we developed our company’s home in Canada. As I consider the future of hiring and growth, I remain committed to adding jobs to the Canadian economy and fostering our R&D offices. At the same time, I’m hoping that the newfound talent influx in Miami means I’ll potentially have more opportunities to make executive hires and contribute to the budding network of local tech professionals.
The COVID-19 pandemic has had the effect — a good one, I’d argue — of accelerating our debates about work, productivity, and business hubs. It has expanded talent pools and given more autonomy and flexibility for employees to build lives and homes based on their preferences, not an office address. I was early to the Miami party when I arrived in 2012 and I’m happy to see it continue full swing in 2021 and beyond. For business leaders and remote workers considering joining me here, welcome. The water’s warm.
Jody Glidden is the founder and CEO of Introhive. Founded in 2012, Introhive is the fastest-growing B2B relationship intelligence service and data management platform. The company was recently recognised by Deloitte’s Fast 50 and Fast 500 Awards and was named the 2020 MarTech Breakthrough Award winner for best CRM Innovation Software.
