Tim Olson

Tech investment in San Diego is set for a record year. According to research from JLL, tech investment in the first quarter has already surpassed $408 million, one-third of the total investment volume in 2018 and nearly half of the five-year investment average of $831 million. If the momentum keeps, tech investment could hit $1.6 billion this year, surpassing the $1.2 billion record set in 2018.

“San Diego has a tremendous amount of momentum right now,” Tim Olson, managing director at JLL, tells GlobeSt.com. “Our defense, cyber-security, and life science industries have been the driving force over the last couple of decades, creating a robust ecosystem that has helped the current surge in tech growth. Success begets success; with now three San Diego companies reaching unicorn status, and major tech companies expanding into our city for the first time, companies and investors are noticing. Our education systems, high-caliber workforce, and affordability compared to markets in the Bay Area and other major markets are also contributing factors. The number of STEM graduates coming out of San Diego universities has increased by 79% in the last 10 years, providing the market with a highly skilled workforce in a tight and hyper-competitive labor market.”

The life science market has historically driven venture capital investment in San Diego; however, technology companies overtook life science for the first time in the first quarter with Kybria, TuSimple and Wheels Lab garnering the top investment dollars. “San Diego life science investment has skyrocketed over the last three years and has garnered the lion's share of funding compared to tech with more deals at higher volumes. Q1 2019 was the first quarter where tech outperformed life sciences with $539 million in funding with three late stage rounds over $100 million,” says Olson. “This is all positive for San Diego and shows the diversity and balance our economy is working towards.”