California Draws More Startup Investment Than All Other 49 States Combined, BUT at the same time startup founders are already talking about leaving.
The Wall Street Journal reports California has attracted a staggering $366 billion in venture-capital investment this year — more than all other 49 states combined — largely fueled by the artificial-intelligence boom. OpenAI and Anthropic alone account for more than $217 billion of that investment. But now California voters are being asked to approve Proposition 40 — a one-time 5-percent wealth tax on billionaires. And some entrepreneurs say that could change the equation.
Mainstreet.com founder Jesse Tinsley tells Business Insider he’d leave California if it passes, potentially for Miami or Palm Beach. Artisan founder Jaspar Carmichael-Jack says he’d also consider relocating. Mark Cuban has gone even further, warning that startup founders could flee and saying he would steer his future investments away from California if the tax passes. So think about the irony:
California has built the most powerful startup ecosystem in America — attracting more venture capital than the other 49 states combined. And now some of the people creating those companies are warning California not to tax that advantage away.
