Will tech talent flee to the suburbs because of the pandemic? Perhaps it will accelerate a trend of a subset of millennials turning their minds to marriage, and moving to areas that offer more space. But there’s not much evidence that the pandemic has changed the tastes of otherwise enthusiastic city dwellers. So far, their venture capital backed companies remain in the city.
I looked at the location of Massachusetts venture deals during the past three months, using VentureDeal. There were 89, totaling $3.7B. 76% were in the inner urban core; 18% in the Rt 128 suburbs; and 6% along the I-495 corridor. Only 1 venture deal was outside this area, in Haydenville, for an ag tech company nabbing $2.75M.
This urban shift of startup deals has been underway for a decade. In 2009 only 36% of the venture capital deals were in the inner urban area. In 2019 it reached 70%.
It seems so far that not even a pandemic can change the allure of the hustle and bustle of a densely populated area with folks from all different backgrounds. There is an indescribable energy in Boston that elevates it beyond what other outlying places could ever recreate.
Remote work will become an option. I’ll bet many will want to go back to the office.