A rising amount of venture-capital (VC) money is finding its way into the San Diego market, according to a report released by a representative of San Diego Regional Economic Development Corporation. The region saw a 69.2 percent increase in venture-capital dollars flowing in during Q2 2018 compared to the year prior, more than doubling VC funding to this region, the source reports.
As SoCal Real Estate reported in July, in Q2, San Diego startups pulled in the largest amount of venture capital since the tech bubble of the early 2000s, fueled by investments in biotech and healthcare companies. According to a MoneyTree survey, 34 local startups raised $590 million, led by Ansun Biopharma and Cibus Global. Read more about it here.
Employment figures for San Diego look strong as well, with the source reporting that the region holds a 3.7 percent unemployment rate. The report says that after “seasonal declines in employment” during the first quarter of the year, San Diego — along with most highly populated metros in the country, saw employment rise during Q2. According to the report, “the region added 16,500 jobs —a 1.1 percent increase in employment during the quarter,” partially due to adding recent graduates to the workforce and gearing up for a busy summer season. “Compared to a year ago, nonfarm employment was up 22,500 jobs, or 1.5 percent.” Also, San Diego’s unemployment rate fared well, staying under the state rate of 4.5 percent and the national rate of 4.2 percent, the source says.
In addition, San Diego’s unemployment rate compares favorably to Riverside County at 4.7 percent and Los Angeles at 4.5 percent, the report shows.
The market’s ongoing appeal as a destination for tourists has benefited employment numbers as well. According to the report, the leisure-and-hospitality sector recorded the largest quarterly gain during the quarter, adding 6,300 jobs.
The housing market also continues to strengthen. The source reports that year-over-year, the average price for a San Diego home rose by 6.6 percent.