{"id":107830,"date":"2018-12-24T23:40:17","date_gmt":"2018-12-24T23:40:17","guid":{"rendered":"https:\/\/www.bnreport.com\/uber-lyft-ipos-to-mint-next-batch-of-bay-area-millionaires-cnet\/"},"modified":"2018-12-24T23:40:17","modified_gmt":"2018-12-24T23:40:17","slug":"uber-lyft-ipos-to-mint-next-batch-of-bay-area-millionaires-cnet","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/uber-lyft-ipos-to-mint-next-batch-of-bay-area-millionaires-cnet\/","title":{"rendered":"Uber, Lyft IPOs to mint next batch of Bay Area millionaires     \u2013 CNET"},"content":{"rendered":"<figure><figcaption>\nWith several tech companies planning IPOs in 2019, San Francisco is facing a new influx of millionaires.<\/p>\n<p>                                                     James Martin\/CNET                                                 <\/p>\n<\/figcaption><\/figure>\n<p>Along with sourdough bread, impossibly steep hills and the Golden Gate Bridge, San Francisco is known for having more billionaires than any US city west of the Mississippi. <a href=\"https:\/\/www.wealthx.com\/wp-content\/uploads\/2018\/05\/Wealth-X_Billionaire_Census_2018.pdf?utm_source=https%3A%2F%2Fwww.wealthx.com%2Fwp-content%2Fuploads%2F2018%2F05%2FWealth-X_Billionaire_Census_2018.pdf\" rel=\"noreferrer\" target=\"_blank\">Seventy-four to be exact<\/a>. That&#039;s not to mention the <a href=\"https:\/\/www.kiplinger.com\/slideshow\/investing\/T064-S001-where-millionaires-live-in-america-2018\/index.html\" rel=\"noreferrer\" target=\"_blank\">nearly 150,000 millionaires<\/a> that live in the Bay Area.<\/p>\n<p>And those numbers are about to multiply.<\/p>\n<p>If all goes as planned, 2019 will be a year of tech IPOs. San Francisco-based companies including Airbnb, Pinterest and Slack are expected to issue initial public offerings, along with ride-hailing rivals Uber and Lyft.  Analysts think Uber, the world&#039;s highest valued private company, could <a href=\"https:\/\/www.cnet.com\/news\/uber-files-for-ipo-wall-street-journal-reports\/\" rel=\"noreferrer\" target=\"_blank\">pull in as much as $120 billion<\/a> from public funding, making it the biggest IPO in US history. <\/p>\n<p>&quot;It&#039;s huge,&quot; Matthew Kennedy, senior IPO market strategist for Renaissance Capital, said of Uber&#039;s potential valuation. &quot;Its IPO will result in a lot of overnight millionaires.&quot;<\/p>\n<p>If history is any guide, they&#039;ll buy new homes and cars, throw wild parties, invest in wineries in nearby Napa and Sonoma, and possibly even install deluxe bomb shelters (<a href=\"https:\/\/www.cnet.com\/news\/nuclear-bunkers-are-the-new-real-estate-craze\/\" rel=\"noreferrer\" target=\"_blank\">the next big thing for tech&#039;s moneyed set<\/a>). Those IPOs also mean rising housing costs. <\/p>\n<p>&quot;They&#039;re already thinking of ways of how they&#039;re going to spend that money,&quot; said Brian Solis, principal analyst at market research firm Altimeter Group. &quot;It&#039;s going to affect the city in a lot of positive and negative ways.&quot;<\/p>\n<p>          We&#039;re creating multimillionaires and billionaires faster than any other place.&quot;          <\/p>\n<p>Richard A. Walker, professor emeritus at UC Berkeley<\/p>\n<p>Creating brand-new millionaires has been a Silicon Valley rite of passage for decades \u2014 especially during the dot-com boom when working for a startup was practically synonymous with an IPO windfall. And it didn&#039;t end with the dot-com bust. The New York Times estimated that <a href=\"https:\/\/www.nytimes.com\/2007\/11\/12\/technology\/12google.html\" rel=\"noreferrer\" target=\"_blank\">more than 1,000 Google employees became instant millionaires<\/a> when that company went public in 2004. Facebook&#039;s IPO in 2012 reportedly created &quot;thousands of millionaires,&quot; according to <a href=\"https:\/\/www.reuters.com\/article\/us-facebook-millionaires\/facebook-ipo-sparks-dreams-of-riches-adventure-idUSTRE7B72NK20111208\" rel=\"noreferrer\" target=\"_blank\">Reuters<\/a>. And, according to financial analysis firm <a href=\"https:\/\/www.privco.com\/home\/login?redirect=https:\/\/www.privco.com\/the-twitter-mafia-and-yesterdays-big-irs-payday\" rel=\"noreferrer\" target=\"_blank\">PrivCo<\/a>, Twitter is said to have made 1,600 new millionaires in 2013.<\/p>\n<p>&quot;This wealth is coming from disruption,&quot; said Deepa Varma, executive director of the San Francisco Tenants Union. &quot;The concern is this creates more inequality.&quot;<\/p>\n<h2><strong>Haves and have-nots<\/strong><\/h2>\n<p>Becoming an overnight millionaire is great news for a relative few. For everyone else in San Francisco, not so much. <\/p>\n<p>The birthplace of the Beat Generation of the 1950s, and of the 1960s counterculture movement, San Francisco is famous for embracing artists, activists and the outright weird. It&#039;s where the Human Be-In and the Summer of Love took place. And even today, participants in the annual Folsom Street Fair or Bay to Breakers footrace wear <a href=\"https:\/\/www.sfgate.com\/local\/article\/The-best-Bay-Area-themed-Bay-to-Breakers-costumes-11150451.php\" rel=\"noreferrer\" target=\"_blank\">outrageous costumes or even nothing<\/a> at all. <\/p>\n<p>But that character of San Francisco is changing as the city&#039;s become the desirable place for young tech workers to live. <\/p>\n<p>The desirability is why <a href=\"https:\/\/www.cnet.com\/news\/yahoo-apple-buses-blockaded-and-puked-on-in-oakland\/\" rel=\"noreferrer\" target=\"_blank\">fleets of corporate buses<\/a> ferry thousands of SF-based tech employees 40 miles south to Google, Apple and other Silicon Valley workplaces. And it&#039;s why dozens of major tech companies \u2014 many of which were able to <a href=\"https:\/\/www.cnet.com\/news\/sf-gives-boost-to-twitter-tax-break\/\" rel=\"noreferrer\" target=\"_blank\">negotiate significant tax breaks<\/a> from the city \u2014 relocated or opened new offices in San Francisco.<\/p>\n<p>It&#039;s also why San Francisco has become a stark example of a haves and have-nots situation: Where well-heeled employees walk past homeless people huddled in doorways and sleeping on top of warm steam vents. As more tech workers have moved into the city, <a href=\"https:\/\/www.cnet.com\/news\/vexed-in-the-city-if-youre-moving-to-san-francisco-bring-cash-lots-of-cash\/\" rel=\"noreferrer\" target=\"_blank\">home rental prices have shot up<\/a>, vacancy rates have plummeted, and the homeless population has swelled.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/www.cnet.com\/news\/uber-lyft-ipos-to-mint-next-batch-of-bay-area-millionaires\/\" alt=\"sf-3078.jpg\"\/><img decoding=\"async\" src=\"https:\/\/cnet2.cbsistatic.com\/img\/sna7W0hw2r4QhTGk9UOdgJcls_s=\/970x0\/2014\/08\/19\/52c93c8a-c1de-4618-b5e8-b4d79aa06042\/sf-3078.jpg\" alt=\"sf-3078.jpg\"\/><figcaption>\nSan Francisco has one of the largest homeless populations in the country.<\/p>\n<p>                                                     James Martin\/CNET                                                 <\/p>\n<\/figcaption><\/figure>\n<p>&quot;We&#039;re one of the leading creators of inequality in the country if not in the world,&quot; said Richard A. Walker, professor emeritus of geography at the University of California, Berkeley, and author of a <a href=\"https:\/\/geography.berkeley.edu\/richard-walker\" rel=\"noreferrer\" target=\"_blank\">new book<\/a> on wealth and displacement in the Bay Area. &quot;We&#039;re creating multimillionaires and billionaires faster than any other place. It does not trickle down to a lot of the workers.&quot;<\/p>\n<h2><strong>Cost of disruption<\/strong><\/h2>\n<p>Every year the federal Department of Housing and Urban Development looks at US cities&#039; median income and average housing costs to calculate what constitutes low income. In 2018, the department concluded that a family of four <a href=\"https:\/\/www.huduser.gov\/portal\/datasets\/il\/il2018\/2018summary.odn\" rel=\"noreferrer\" target=\"_blank\">earning up to $118,400<\/a> is low income in San Francisco. That number is the highest in the nation.<\/p>\n<p>&quot;The lower 80 percent of the population can&#039;t afford to live in the Bay Area,&quot; Walker said. &quot;They can&#039;t make a living wage because costs keep getting driven up.&quot;<\/p>\n<p>With median home prices at <a href=\"https:\/\/www.car.org\/marketdata\/data\/countysalesactivity\/\" rel=\"noreferrer\" target=\"_blank\">$1.6 million<\/a>, and <a href=\"https:\/\/www.rentcafe.com\/average-rent-market-trends\/us\/ca\/san-francisco\/\" rel=\"noreferrer\" target=\"_blank\">average monthly rents<\/a> of $3,261 for a 700-square-foot one-bedroom apartment, living in San Francisco has become untenable for many longtime residents.<\/p>\n<p>&quot;The problem with the housing market is already massive excess demand,&quot; Walker said. &quot;Housing takes a long time to build. There&#039;s a lot being built, but it cannot possibly catch up.&quot;<\/p>\n<p>People who don&#039;t make six figures \u2014 including teachers, artists, service workers and nonprofit staff \u2014 are being forced to move to less-expensive cities.<\/p>\n<p>San Francisco has also seen an exodus of its once thriving black population, according to The <a href=\"https:\/\/www.nytimes.com\/2016\/07\/21\/us\/black-exodus-from-san-francisco.html\" rel=\"noreferrer\" target=\"_blank\">New York Times<\/a>. Roughly <a href=\"https:\/\/factfinder.census.gov\/faces\/tableservices\/jsf\/pages\/productview.xhtml?src=CF\" rel=\"noreferrer\" target=\"_blank\">5 percent<\/a> of the city is African-American, down from more than <a href=\"http:\/\/www.bayareacensus.ca.gov\/counties\/SanFranciscoCounty70.htm\" rel=\"noreferrer\" target=\"_blank\">13 percent<\/a> in 1970. That means you&#039;re now nearly twice as likely to run into a millionaire in San Francisco than someone who&#039;s black.<\/p>\n<p>In effect, 20- and 30-something tech workers have been displacing the people who gave the city its character. And now, with the upcoming surge in millionaires, that&#039;s just going to intensify.<\/p>\n<p><a href=\"https:\/\/www.cnet.com\/cnet-magazine\/\" rel=\"noreferrer\" target=\"_blank\">CNET Magazine<\/a>: Check out a sampling of the stories you&#039;ll find in CNET&#039;s newsstand edition.<\/p>\n<p><a href=\"https:\/\/www.cnet.com\/road-trip\/#link=%7B%22role%22:%22standard%22,%22href%22:%22https:\/\/www.cnet.com\/road-trip\/%22,%22target%22:%22%22,%22absolute%22:%22%22,%22linkText%22:%22%3Cstrong%3EThe%20Smartest%20Stuff%3C\/strong%3E%22%7D\" rel=\"noreferrer\" target=\"_blank\">The Smartest Stuff<\/a>: Innovators are thinking up new ways to make you, and the things around you, smarter.<\/p>\n<p><strong><a href=\"https:\/\/blockads.fivefilters.org\/\" rel=\"noreferrer\" target=\"_blank\"><\/a><\/strong> <a href=\"https:\/\/blockads.fivefilters.org\/acceptable.html\" rel=\"noreferrer\" target=\"_blank\"><\/a><br \/>\n[contf]<br \/>\n[contfnew]<br \/>\n        <img decoding=\"async\" src=\"https:\/\/c-8oqtgrjgwu0x24epgv6x2eedukuvcvkex2eeqo.g00.cnet.com\/g00\/3_c-8yyy.epgv.eqo_\/c-8OQTGRJGWU0x24jvvrux3ax2fx2fepgv6.edukuvcvke.eqox2fhnax2fdwpfngux2fepgveuux2fkocigux2feqtgx2ftgfdcnnx2fnqiq_314.rpix3fk32e.octmx3dkocig_$\/$\/$\/$\/$\/$\/$\/$\"\/><\/p>\n<h5><a href=\"https:\/\/www.cnet.com\/\" rel=\"noreferrer\" target=\"_blank\">cnet<\/a><\/h5>\n<p>[contfnewc]<br \/>\n[contfnewc]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With several tech companies planning IPOs in 2019, San Francisco is facing a new influx of millionai..<\/p>\n","protected":false},"author":1,"featured_media":107831,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[],"class_list":["post-107830","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-science"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - 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