SPECIAL SUPPLEMENT | JULY 28, 2017 TheTri-Valley The future has arrived Stephanie Beasly Chris Weeks David Selinger Sanjeev Saxena National labs unleash Bishop Ranch reinvents A new hub for artificial The pulse of medical innovation transportation intelligence technology SPONSORS A Sunset Development Project Danville Branch Dublin Branch Fremont Bank Tri-Valley locations • Danville Branch (pictured) • Dublin Branch (pictured) • Pleasanton Branch • Livermore Branch • San Ramon Branch Over 50 Years of Building Lifelong Community Bonds. We don’t just work in the Tri-Valley. We proudly live, play, and support the Tri-Valley area. Ever since we opened our first Tri-Valley location, our executive team has built connections with the people and businesses of the area. And to this day, supporting those businesses and ensuring our Tri-Valley neighbors receive the unprecedented support, exclusive access and first-class service they deserve, continues to be a top priority. We are proud to feature our VP of Commercial Banking, Don Marek, as part of the View to the Future panel that will discuss pushing the Tri-Valley economy to new heights during the State of the Tri-Valley event. Don Marek Andy Mastorakis Ken Jones VP of Commercial Banking President and CEO VP of Retail Banking Proud Pleasanton resident Proud Danville resident Proud Danville resident Call or visit us online at (800) 359-BANK (2265) or www.fremontbank.com. www.fb.com/fremontbank @FremontBank Equal Housing Lender | Member FDIC | NMLS #478471 | LCOM-0147-0717 JULY 28, 2017 TRI-VALLEY | INNOVATION LIVES HERE ADVERTISING SUPPLEMENT 3 CONTENTS INTRODUCTION 3 The tipping point The Tri-Valley tipping point 4 Where are we now? 6 Building the Tri-Valley brand Drive East on highway 580 anytime around rush hour, and estimated 360,000-plus residents also call small communities like 7 Innovation: There’s a logo for that you’ll reach an inevitable conclusion: a whole lot of people are Norris Canyon, Diablo and Camino Tassajara home. 8 The in crowd coming and going to the Tri-Valley. In addition to ongoing population gains, the Tri-Valley is also 10 A roadmap to the cutting edge (graphic) Even in comparison to Silicon Valley’s rapid sprawl to San seeing a wave of commercial activity. Well-known companies 12 Show me the money Francisco, Oakland and adjacent cities, the population and eco- like Tesla and Phillips have recently moved to Livermore and 15 Silicon Valley goes global from Tri-Valley nomic growth in the Tri-Valley is happening at breakneck pace. Pleasanton, respectively. They join growing industry clusters 16 Linking up on transit The City of Dublin, for instance, has seen its population swell by in fields like medical technology and cloud software, which are 18 Diagnosing the med tech market more than 25 percent in the past five years alone, state estimates comprised of a blend of homegrown upstarts and incumbents show. like GE, Workday and SAP. 20 The elephant in the room: housing 22 Cloud software takes flight The question now: how will local cities and a growing number Among the brightest lights is the region’s burgeoning local 24 A new artificial intelligence hub of big-name business tenants navigate this growth — especially technology sector, which has for decades been bolstered by 25 Out of the lab, into the market as they strive to maintain an often-cited high quality of life. proximity to two national laboratories and plentiful jobs in nearby Silicon Valley. Now, however, data shows that more capital 26 City-scale transformation “We can’t ignore the fact that there’s traffic. We and new enterprises are being attracted to the Tri-Valley 32 A space race at Hacienda can’t ignore that it’s expensive,” said Dale Kaye, proper. 34 Bishop Ranch redefines work CEO of nonprofit business advocacy group Innova- 36 Focus on foodies tion Tri-Valley. “But what we do have is a region rich Familiar California planning woes like housing and 38 Who’s next with Innovation Assets that also boasts an excellent transportation loom large for those thinking about the education system, a great quality of life and most region’s economic development, but there are plenty of rea- Dale Eldridge Kaye importantly a passion, which eclipse any negatives.” CEO sons to believe the trend toward local growth is here to stay. Innovation Tri-Valley Lauren Hepler Writer ON THE COVER Geographically speaking, the Tri-Valley lies at “If you look at innovation’s inevitable path, and knowing Left to right: Brandon Cardwell, Michael Grant Dale Eldridge Kaye, Vijji Suryadevara the junction of the Amador, Livermore and San Ramon valleys, that the Tri-Valley has more advanced degrees per capita than Creative Director Photo by Spencer Brown spanning parts of both Alameda and Contra Costa counties. even Silicon Valley, it just makes sense,” said Don Garman, Carol Collier Designer The biggest cities in the area are Danville, Dublin, Livermore, founder and chief investment officer of Pleasanton-based finan- Carolyn Seng Pleasanton and San Ramon, though some of the region’s cial advisory firm Mirador Capital Partners. Designer 4 ADVERTISING SUPPLEMENT TRI-VALLEY | INNOVATION LIVES HERE SaN FRANCISCO BUSINESS TIMES Growth at a glance: 27.1% 59,686 Increase in Dublin population this year “The Tri-Valley from 2012-2017, to is leading the Bay Area, and the state of 48% $1 million California, in jump in Livermore median home this July sale price from 2012-2017, to job growth, income, quality of life, and growth in $139 $120 venture capital average nightly rate for Tri-Valley the year prior investment.” hotels during 2015-2016, up from Mirador Capital’s Mirador View report 360,000 $24 million estimated Tri-Valley population amount invested by German auto supplier Dräxlmaier Group in new Livermore expansion WHERE ARE WE NOW? Deal flow grows along with Tri-Valley cities t may seem like a rapid ascent, but the Tri-Valley has been gaining residents and business tenants All five cities in the Tri-Valley — Danville, Dublin, for decades. Livermore, Pleasanton and San Ramon — have seen year-over-year population growth from 2016-2017. With roots in the post-Gold Rush development There’s also been no shortage of leasing or expansion Iboom and the historic downtowns to show for it, the activity at both Class A office hubs, like San Ramon’s region today aims to leverage a combination of desirable Bishop Ranch, and R&D or industrial space in neighbor- local amenities and forward-looking economic prospects ing cities including Livermore. to kickstart more homegrown commercial activity. With that growth also comes longer-term questions The current economic upcycle has only served to about what’s next for the region’s talent pool, develop- amplify that goal. ment pipeline and a new wave of locally-founded compa- nies. “The Tri-Valley really is becoming a particularly ro- bust sub-region of the Bay Area,” said Pamela Ott, who To better understand the state of play in the Tri-Val- leads economic development for the City of Pleasanton. ley, here’s a snapshot of key data on deal flow, regional “Each of the cities brings something unique.” economic context and growth already underway. JULY 28, 2017 TRI-VALLEY | INNOVATION LIVES HERE ADVERTISING SUPPLEMENT 5 Silicon Valley vs. Tri-Valley How does the Tri-Valley stack up economically against its famously tech-fueled neighbor? Population growth Unemployment 37% 2.7% Tri -Valley 2010-2015 Tri-Valley 2016 13% 4% Bay Area 2010-2015 Bay Area 2016 A tech hub growing fast The Tri-Valley has long provided ample Office space housing for workers in nearby San Percentage of residents Francisco, Silicon Valley and the East $/SF/month with advanced degrees (2016 average) Bay cities along the bay. What’s changed of late is the number of 22% companies setting up shop or choosing $2.55 Tri-Valley to grow in the region, particularly as Tri-Valley M&A activity heats up. Livermore-based regional tech incu- 18% bator and co-working space i-GATE Bay Area $5.45 crunched the numbers on the local tech San Francisco industry using data from Crunchbase and the Bay Area Council, tallying the 21% following figures: $5.13 Silicon Valley Peninsula 450 estimated number of tech companies in the Tri-Valley region Salary spotlight Median incomes around the Tri-Valley, according to the $16estimated billion number of startups latest available Census estimates in 2015. in the Tri-Valley region Danville 150,000 $140,809 San Ramon $128,916 Dublin $1amount billion of capital raised $118,773 by Tri-Valley companies since 2015 120,000 Livermore Pleasanton $100,992 $101,022 90,000 $75median million price of Tri-Valley companies acquired since 2010 60,000 30,000 6 ADVERTISING SUPPLEMENT TRI-VALLEY | INNOVATION LIVES HERE SaN FRANCISCO BUSINESS TIMES BRAND Building a brand on empathy and innovation How do you brand an entire region? n the case of the Tri-Valley, that question was the focus in April at a tech-themed, black-lit party complete with lightsaber-equipped ushers and Tri Tini cocktails. “Attendees loved the purple ice cubes, the tritinis Iand the vibe,” recalled Dale Kaye, CEO of regional busi- ness group Innovation Tri-Valley. “But what resonated with them was the sentiment of the logo and the need for a brand.” The Innovation Tri-Valley brand unveiling party this spring — marked by a distinctive new logo and the tagline “The heart of California Innovation” — capped nearly two years of research and strategic planning for Kaye and branding specialists at San Francisco design firm Black- belt. A regional identity became increasingly important over time to enabling a new level of growth in the region’s budding ecosystem of startups, incubators and large busi- nesses, Kaye said.