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Home Featured

Investment into technology companies in San Diego region more than quadrupled

SDCNN by SDCNN
September 3, 2021
in Featured, News
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More than $2.4 billion in venture capital went to San Diego tech companies during the second quarter of this year, a 433 percent increase from the previous quarter and the first time that Tech received more VC funding than Life Sciences since Q1 2019, according to a San Diego Regional EDC report.

Life sciences funding fell from record levels, but still pulled in more than $1.9 billion during the quarter, more than doubling the amount received in the same quarter last year.

Net absorption of office real estate was positive during the quarter, up more than 330,000 square feet, for the first time since the fourth quarter of 2019 as San Diego businesses began transitioning back to the office.

Additionally, tech companies such as Apple and AppFolio are expanding their San Diego footprint, helping push office vacancy rates down and rent growth back up.

Job growth returns amid continued battle for talent. San Diego’s second quarter employment reversed the past year’s downward trend as the vaccine rollout led to loosened restrictions on businesses and increased consumer confidence. Year-over-year total nonfarm employment increased by 17,700 in the second quarter, with Leisure and Hospitality leading the way. However, total employment remains about 100,000 jobs lower than pre-pandemic levels and some key industries, such as Health care, are in dire need of more workers.

 

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