Central California: Why Now?

I exchanged emails with a friend/mentor, Alex Klikoff, today. Alex gave me some of the earliest and best advice about starting a fund.

I shared our latest deck this morning and he said he liked our new slide, “Central CA: Why Now?”

I said, “People need to see / feel the density of arriving opportunity, or else they call BS on HawkTower’s thesis.”

Alex: “Agreed. Especially us folks who grew up in CA and have dated conditioning.”

On the cusp of an economic and technological renaissance

HawkTower is driven by the conviction that Central California is on the cusp of a boom in innovation and commercialization, presenting new opportunities for venture and growth in both the Central Valley and on the Central Coast.

Today, <1% of California’s venture capital flows here — this is driven somewhat by dated conditioning and will change.

1. Tech Hub for Mobility: Companies like Santa Cruz/Marina’s Joby Aviation are transforming Central California into a hub for mobility innovation, leveraging the region’s spacious rural airports to pioneer advancements in air transportation.
2. AgTech Innovation: The region is a powerhouse in agriculture, contributing significantly to the nation’s food supply, supported by leading AgTech developments. We expected a thriving startup scene to want to re/locate near valued customers (like AdTech in New York).
3. Naval & Dual-Use Ecosystem: Proximity to institutions like the Naval Postgraduate School and the Naval Innovation Center (2028) can foster a robust dual-use technology ecosystem.
4. Central Valley Windfall: With booming populations in cities like Fresno and significant public funding, the Central Valley is rapidly developing, including upcoming tech accelerators like BEAM Circular in Modesto (to which HawkTower just submitted an RFI).
5. Stanford Presence in Monterey: Stanford University’s investment in the Hopkins Marine Station (as part of the Doerr School of Sustainability) underscores a growing academic influence that drives marine and environmental research in the region.
6. Blue Economy & Ocean Research Network: The Blue Economy is thriving, with institutions like MBARI and NOAA leading ocean research and conservation efforts across over 6,000 square miles of marine sanctuary.
7. Rising Hispanic Population: The Hispanic community is rising, doubling its startup founder representation since 2018, and showing a 4-fold increase in advanced degrees over 20 years, adding to the region’s diverse talent pool.
8. Emerging UC & CSU Schools: UC Santa Cruz and UC Merced, along with CSU schools, are emerging as critical players in tech transition, research and workforce development.
9. Workforce via Capable & Scrappy CSU Schools: CSU campuses are known for producing a capable and adaptable workforce, essential for the evolving needs of startups and established industries. Cal Poly, Fresno St., and other schools are competing for the best talent.
10. Housing & Water Innovations: Necessity has spurred innovations in sustainable housing and water management, with new developments in cities like Salinas and Turlock addressing the housing shortage.

If you’re interested in tracking our journey, please follow HawkTower on LinkedIn and Instagram.