Goleta is the #2 California Startup City Outside the Bay Area

By Elizabeth Acebu

If you’re interested in starting a successful startup--or maybe just working at one--come to what locals fondly call “the 805” (our area code). Just being in the Goleta area will put you into an ecosystem where high quality ventures thrive, according to a recent study by MIT scientists that was published in the journal Science.  

Using a model that predicted the quality of startups in cities, rather than just their quantity, the study found that Goleta (the city where UCSB is located) was ranked #2 for cities outside the Bay Area and ranked significantly higher in entrepreneurial quality, well above the 95th percentile--on par with cities like Cupertino and Santa Clara, and far higher than all the cities in the LA Basin.  

Among the highly successful companies that started right here in Goleta are Appfolio (NASDAQ: APPF), and CytomX Therapeutics (NASDAQ: CTMX) which had recent IPO’s that were followed by huge investment rounds.  The close proximity of UC Santa Barbara to all this activity is no coincidence.  Indeed, CytomX came out of UCSB.  UCSB professors and research labs have also spun off companies like AppScale, LastLine, and many others.   Elsewhere on the Central Coast we find MindBody (NASDAQ: MB), which is based in San Luis Obispo.

A large number of other innovative companies with huge growth potential have started here in recent years, many as a result of the UCSB Technology Management Program (TMP), whose annual New Venture Competition has produced companies like Inogen (NASDAQ: INGN), along with up and coming companies like TrackR and Salty Girl Seafood.  In all, more than 35 startups have come out of TMP.

To read more about how companies survive and thrive in the 805, check out this recent article by UCSB Master of Technology Management lecturer and mentor Matthew Stotts.  

In the process of ranking the best startup cities in California, the MIT study also points out some unexpected factors that are associated with startups that later lead to an IPO or acquisition.  If this study is right, doing these things could stack the deck for long term success of your fledgling startup.  

First, name your new startup something short.  The MIT model found that companies with short names including technology-associated words tend to grow better.  Also:  don’t name your new company after yourself.  Businesses named after founders tend to do less well over time.  Finally: Incorporate--companies that skip this step don’t do as well in the long run.

Getting connected to the 805 tech network through the UCSB Technology Management Program (TMP) is a great move if you are looking to start or work at a technology company.  TMP is increasingly a hub for connecting up and coming entrepreneurs with the resources and mentors they need to build their businesses--startups that don’t just “start up”...but also have staying power to make it for the long run.

 

--The Master of Technology Management (MTM) program at UC Santa Barbara is designed to catapult engineers and scientists into leadership positions — within both startups and established companies. This 9-month, intensive program is designed to teach the frameworks, skills, and techniques you need to be a successful technology manager. No fluff, no filler.  The MTM degree will get you further, faster.