Why Fund Managers Are Focusing In On Silicon Valley
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Why Fund Managers Are Focusing In On Silicon Valley

Why Fund Managers Are Focusing In On Silicon Valley
Silicon Valley is abuzz with activities these days. Financial planners are bust adding the technology riche to their preferred client list. This booming trend is a reminder of a similar phase during the 1990’s when a large number of rich people were looking for financial advisers. Dot com business was at boom during that phase and financial advisers as like now were in much demand. Aaron Rubin, an independent financial planner at Webra Rubin Wealth Management points out that everyone is trying to be a part of this boom in the market and the period has really been a great time for the financial advisers. The boom in the market can be judged from the fact that Webra Rubin Wealth Management is managing around $250 million in assets that belongs to 225 of its clients. However, the trend cannot be called as a shocker in the true sense for the financial planners as they are known to venture into markets where an opportunity exists. The only thing this time is that Silicon Valley has emerged as a hunting ground for the super rich and they are taking full advantage of the same. They are only realizing the benefits of social media IPOs that have been around. Some of these include those of LinkedIn having a worth of $6.8 billion, Facebook IPO worth $16 billion and Zynga IPO for $7 billion. Wealth tracking company, Wealth- X points out that the amount of wealth being generated is immense. Around one fifth of the wealthy Americans live in California. Their status can be well understood as almost all of them have net worth of over $30 million. Interestingly, California has emerged as the hub of the millionaires in United States. This trend will only get stronger in the coming times as cloud computing companies as Dropbox and Box will be having more acquisitions in the coming times. Recently only, Yahoo had announced the acquisition of Tumblr. The deal is expected to be worth $1.1 billion. David Carp, the CEO of Tumblr is expected to receive $250 million for the proposed merger. Other social media companies as Facebook have also been trying to acquire navigation app Waze. This deal if materialized would be a billionaire dollar app acquisition deal. Kevin Sayar, the entrepreneur who owned ebrary, dealing with providing e-books to libraries is a recent example of boom in this technology market. Kevin sold ebrary to ProQuest an electronic publisher in 2011 reportedly for a sum of over $50 million. Financial management firms have been reaping the success to their advantage. Westridge Wealth Strategies, a California based firm dealing in financial planning is a live example of this booming trend. The firm has over $45 million in assets and has numerous entrepreneurs, doctors and other start up firms as clients. Some of the financial management firms as Wealthfront.com have been growing with amazing speeds. This finance management firm has seen a growth rate of 20 percent per month. The firm which was launched in 2011 only has acquired $250 million in assets until date. Finding a financial adviser in the Silicon Valley is not a tough deal. Wealthy individuals find them through their personal contacts, venture capitalists or some attorney. This emerging scenario is working well for one and all.    
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