SAN FRAN-DISCO – As a computer science student in the Midwest, Alex Valaitis developed a crush on Silicon Valley, daydreaming about the Bay Area like a theater major fantasizing about their Broadway debut. But after five years of “soul-crushing” tech work, San Francisco’s charm waning, and crime on the rise, Valaitis ditched sunny California in June 2021 for the honky-tonk vibes of Austin.

“I like to bet on momentum, and Austin has it,” Valaitis, 28, gushed, who now runs a Web3 product studio and spills the tea on artificial intelligence with his newsletter. “More and more [tech] people seem to be flooding in every month, like partygoers to Coachella.”

For eons, Silicon Valley held the crown as America’s breeding ground for innovation, giving birth to tech titans like Apple, Google, and Facebook, magical unicorns like Uber, DoorDash and Instacart, and tiny start-up hatchlings nurtured by venture capitalists on the legendary Sand Hill Road. But since the pandemic reared its ugly head, remote work policies and layoff sprees have fueled an escape of workers, paving the way for tech hubs like Austin and Miami to thrive.

Things are still cooking for Silicon Valley, as it took home the top prize in venture-capital investments and deal numbers last year, according to data from PitchBook. It’s like that straight-A student—always showing off. But Miami, the sun-kissed party city, saw its funding nearly quadruple in the last three years, hitting $5.39 billion in 2022, with a whopping 81% leap in the deal volume. Austin witnessed a 77% increase in venture capital investment, reaching $4.95 billion, and a 23% bump in the number of deals. New York, Seattle, Philadelphia, Chicago, Denver, and Houston also enjoyed a taste of the investment action.

Alright, let’s face it, these regions are still in Silicon Valley’s shadow, which raked in $74.9 billion in investments across 3,206 deals in 2022. That’s about $45.36 billion and 1,058 deals more than New York — you know, the “Big Apple”? Silicon Valley also housed 86% of start-ups funded by famed accelerator Y Combinator, but the pandemic saw nearly 250,000 people bid adieu to the tech Mecca, according to census data.

“There’s no doubt that [Silicon Valley’s] superstar, center-of-everything status has really needed a Band-Aid or two,” quipped Mark Muro, senior fellow at the Brookings Institution.

Miami and Austin, the cool kids on the block, benefited immensely from having fewer pandemic restrictions. Cryptocurrency and Web3 propelled Miami’s growth like Red Bull at a rave, while Seattle had the home-field advantage of Amazon and Microsoft, luring in enterprise technology and biotech enthusiasts, said Kyle Stanford, the venture capital analyst head honcho at PitchBook.

“A redistribution [of funding] has definitely kick-started. The pandemic, start-up exodus, and remote work helped light the fire under those smaller markets,” he added.

Brianne Kimmel, founder of investment firm Worklife Ventures, noticed a sort of identity swap for Silicon Valley as many Big Tech peeps moved away to cities like Austin and Seattle.

“That’s really opened the door for young, super technical, traditional hacker types to swarm San Francisco,” she explained. “It’s giving the city a facelift it may have lost in recent years.”

In fact, Cerebral Valley, nestled in San Francisco’s Hayes Valley neighborhood, is turning into a hot spot for hacker houses filled with ambitious start-up kids focusing on AI. Kimmel likens it to Silicon Valley during the early-internet era when people would squeeze together in garages to work their magic. She anticipates AI advancements will enable people to work remotely while simultaneously creating innovative hubs across the US that will attract eager workers.

However, AI could also be the proverbial game-changer for the industry, impacting both the Silicon Valley region and the workers within it, warned Muro from the Brookings Institution.

Tech workers craving the classic start-up experience continue to be lured to Silicon Valley like children to an ice cream truck, but more start-ups are sprouting in places like cloud-focused Seattle and AI-driven New York, said Bryan Offutt, partner at investment firm Index Ventures.

“Five years ago, 90% of companies would’ve established themselves in San Francisco,” he reminisced. “Now, it might be more like 70%, with others starting in Seattle and New York, like flowers popping up in a diverse garden.”

Mature companies, on the other hand, are finding it useful to scout for talent beyond the Silicon Valley region, increasing their pool of potential hires, added Erin Price-Wright, another Index partner.

“The need for talent to be clustered together like penguins as they scale doesn’t resonate anymore,” she noted. “It’s much more beneficial to branch out, like a majestic oak tree.”

Atli Thorkelsson, vice president of Redpoint Ventures’ talent network, revealed that Austin has grown as a hub for marketing, sales, and customer teams for tech companies. Meanwhile, New York is having a field day with a smorgasbord of talent, including fintech, health tech, and insurtech aficionados.

“The most likely [to move away from the Bay] seem to be those about five to 10 years into their career, like migratory birds seeking a new adventure,” he observed.

The next generation of tech workers’ perception of Silicon Valley as a tech hub depends on their aspirations. For those looking to build a company and secure funding, Silicon Valley is still the ideal destination.

Kai Koerber, a senior data science major at UC Berkeley, intends to stay in Silicon Valley while building his start-up, Koer A.I. However, once the groundwork is done, the 22-year-old plans to pack his bags and join the wave of Gen Z techies making their way to swanky New York.

“Silicon Valley is perfect for creating connections,” he said. “Then, it’s time to live the good life and join the party in my 20s.”

For Dylan Costinett, a senior data science major at Eastern Washington University, the appeal of Silicon Valley’s tech jobs has faded. Instead, he’s eyeing a government software provider gig that would likely plant him in the Northeast or Midwest.

“I got pretty anxious about finding a job after college because I saw all the layoffs,” Costinett, 21, confessed. “Plus, the high cost of living makes Silicon Valley look less and less like Oz and more like the Land of Nope.”

Some tech industry workers have also found greener pastures outside Silicon Valley. Travel giant Airbnb, one of the pioneers of permanent remote work, saw many employees question the need to stay in the region.

Airbnb tech employees Sofia Ruehle and Ian Demattei-Selby escaped Silicon Valley for Washington, believing that spreading employees across various locations promotes diversity of thought and learning opportunities. Rori Jones, the Diversity and Belonging Business Partner at Airbnb, moved to Denver during the pandemic and has since been joined by six other Silicon Valley residents.

“Before the pandemic, if you didn’t live in San Francisco, you were basically out of the loop,” she explained. “But now, it’s like everyone’s part of the cool crowd.”

Duncan Cook, engineering manager at Yelp, bid farewell to Silicon Valley after nearly 15 years, swapping the techie lifestyle for the picturesque suburb of Happy Valley in Portland, Oregon. Yelp’s “work-from-anywhere” policy enabled Cook to flee the region’s apparent drug problems and secure a larger home for his growing family. Now, he’s excited to see flexible work policies diversify and expand the tech industry.

“I don’t think San Francisco will implode any time soon,” he mused. “But its dazzling luminosity might have dimmed a bit.”

As for Valaitis, the tech aficionado now in Austin, he’s arrived at a refreshing epiphany: “You don’t have to be in the Bay Area to be the IT guy (or gal) in tech.”

“Slowly, but surely, people are waking up to this new truth,” he concluded.