Freestyle has been looking for deals elsewhere in part because of how expensive San Francisco has become via an investing perspective. Felser said he’s finding “pockets of technological dominance” around the planet, whether that will’s Finland for mobile gaming or Estonia for cryptocurrencies.

“Valuations are as high as they ever have been,” he said. “that will is usually kind of a uniquely Bay Area thing. You invest inside same company with the same kind of metrics along with they’re going to be 30 percent cheaper outside the Bay Area.”

Felser isn’t alone. According to a survey of Silicon Valley venture capitalists released on Thursday, confidence among start-up investors is usually at its lowest in almost a decade, with some investors citing the sky-high costs of living along with doing business inside San Francisco region. Smaller start-ups struggle to compete.

“There’s just an out-of-whack supply along with demand, because these companies that will are going public are growing so fast they’re scooping up every available employee inside market,” Felser said. Those going public will have This particular “influx of cash along with so they can actually hire more along with faster, along with maybe there’s more pressure to grow faster.”

Investors are finding more hidden gems outside the Bay Area, because the risk-taking ethos that will’s often associated with San Francisco is usually spreading, said Eric Byunn, partner at Centana Growth Partners, an investment firm with offices in Silicon Valley along with fresh York.

nevertheless Byunn isn’t expecting to see a mass exodus of capital. Silicon Valley goes through boom-along with-bust cycles, nevertheless always reinvests in itself. There’s no reason why that will won’t continue.

“There is usually absolutely a certain density along with concentration of interest along with talent along with resources to build a company here,” Byunn said. “You go into a trendy restaurant along with three-quarters of the conversations inside restaurant are about technology along with start-ups.”

—’s Ari Levy contributed to This particular report.

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