Sand Hill Road

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Sand Hill Road
Driving down Sandhill Road.jpg
View of Sandhill Road, with the Hoover Tower at Stanford University visible in the distance
Location Menlo Park, California and Woodside, California
Major
junctions
Interstate 280
East El Camino Real
West Portola Road, Woodside
Other
Known for Silicon Valley venture capitalism

Sand Hill Road, often shortened to just "Sand Hill,"[1] is a road in Menlo Park, California, notable for its concentration of venture capital companies.[2] The road has become a metonym for that industry; nearly every top Silicon Valley company has been the beneficiary of early funding from firms on Sand Hill Road.[3]

Its significance as a symbol of private equity in the United States is compared to that of Wall Street and the stock market,[4] and K Street in Washington, D.C. and political lobbying.[3]

Location[edit]

Connecting El Camino Real and Interstate 280, the road provides easy access to Stanford University and Silicon Valley to the south. The road extends southwest through to the residential Woodside, California, but the equity companies are concentrated on the main stretch of the road in Menlo Park. On its eastern end, it is the division line between Menlo Park and Palo Alto.

Sand Hill Road is also home to the SLAC National Accelerator Laboratory.

History[edit]

Photograph of Sand Hill Road in 1971, in the non-approved "Willow Expressway" proposal, which would have extended Sand Hill to connect Interstate 280 to the Dumbarton Bridge

For many years, Sand Hill Road's northern end terminated in the middle of Stanford Shopping Center's parking lot, and the only four-lane segment was the section from Interstate 280 to Santa Cruz Avenue (the section where all the venture capitalists are housed). This situation resulted in two severe bottlenecks which made it difficult to travel to and from Stanford Shopping Center, Stanford University, and Menlo Park.[citation needed]

Extension and widening of the road was fiercely opposed by environmentalists, who were concerned about the road's proximity to San Francisquito Creek, and by residents of Menlo Park, who feared that completion of the road would increase traffic congestion in their area due to the mid-Peninsula region's lack of a direct north-south arterial. After three decades of lobbying, negotiation, and litigation, the road was finally completed to El Camino Real in 2001. Only the existing portion from just north of Alameda de las Pulgas to just south of Stanford Shopping Center was widened to four lanes; the new extension past the shopping center was built only as two lanes.[citation needed]

The bottleneck near Santa Cruz Avenue was widened in 2006 and features a 16-foot (4.9 m) high faux rock wall at the junction of Sand Hill Road and Santa Cruz Avenue. The project was delayed because the stretch of land at issue runs through Menlo Park, not Palo Alto; the city reversed its opposition to widening only after seeing the results of the widening of the northern Palo Alto segment.[5]

Venture capitalism[edit]

Sand Hill Road sign from Interstate 280 northbound

The first venture capitalist to establish itself on Sand Hill Road was Kleiner Perkins Caufield & Byers in 1972. Since then, beneficiaries of funding from Sand Hill include Microsoft, Amazon.com, Facebook, Twitter, Instagram and Skype.[3]

For several years during the dot-com boom of the late 1990s, commercial real estate on Sand Hill Road was more expensive than almost anywhere else in the world. The annual rent in the area around Sand Hill Road peaked at around $144 (USD) per square foot ($1550 per m2) in mid-2000; at the time, this was higher than rates in Manhattan and London's West End.[6]

As of December 2014, Sand Hill Road is still the most expensive office space in the United States; evaluated at $111 per square foot, beating Manhattan's Fifth Avenue at $102 per square foot.[3]

Venture capital firms[edit]

Some venture capital and private equity firms located on Sand Hill Road include:

In popular culture[edit]

The season two premiere episode of the HBO television series Silicon Valley, in which the show's protagonists try to secure venture capital for their startup, was titled "Sand Hill Shuffle."

References[edit]

  1. ^ Murphy, Paul (March 10, 2015). "'Sand Hill is the New Wall Street'". Financial Times. Retrieved April 19, 2015. 
  2. ^ Holson, Laura M. "Still Feeding An Internet Frenzy." New York Times, June 6, 1999, sec. BU, p. 1.
  3. ^ a b c d "Venture Capital: Sand Hill Road Rules the Valley". Bloomberg News. December 4, 2014. Retrieved April 19, 2015. 
  4. ^ Kwasi Kwarteng, Priti Patel (2012). Britannia Unchained: Global Lessons for Growth and Prosperity. Palgrave Macmillan. pp. 93–94. ISBN 1-137-27411-5. Retrieved April 19, 2015. 
  5. ^ Neidorf, Shawn. "Menlo Park OKs Widening Sand Hill Road." San Jose Mercury News, November 13, 2002, sec. B, p. 1.
  6. ^ Ulfelder, Steve. "Welcome to the Hotel California No Vacancy: It's goodbye Santa Clara and hello Cincinnati for an increasing number of Internet start-ups that would rather not deal with the Valley's insane real estate costs and fickle workforce." Network World, September 25, 2000, p. 100. [1]
  7. ^ "Astellas Venture Management - Contact Us". astellasventure.com. 
  8. ^ "Contact Us". khoslaventures.com. 
  9. ^ "Home - Canaan". canaan.com. 
  10. ^ "Altimeter Capital". altimetercapital.com. 
  11. ^ GI Partners
  12. ^ "5AM Ventures - Actively Building Life Science Companies". 5amventures.com. 
  13. ^ LightSpeed Venture partners - Contact us
  14. ^ Westly Group - Contact Us
  15. ^ Contact Us - Nexus Venture Partners
  16. ^ "About Us". Greylock Partners. 
  17. ^ a b "Shasta Ventures". shastaventures.com. 
  18. ^ "Silicon Valley - Contact - DCM". dcm.com. 
  19. ^ "Storm Ventures". stormventures.com. 
  20. ^ "Contact Us". mayfield.com. 
  21. ^ "Contact Us to learn more about ONSET Ventures - ONSET Ventures". onset.com. 
  22. ^ "Contact Us". ggvc.com. 
  23. ^ Our Offices
  24. ^ "Contact Us". interwest.com. 
  25. ^ "Dream Bigger". kpcb.com. 
  26. ^ Robert Noakes. "TriplePoint Capital - Contact Us". triplepointcapital.com. 
  27. ^ "Contact Us - Makena Capital Management". Makena Capital Management. 
  28. ^ "Contact - Andreessen Horowitz". a16z.com. 
  29. ^ "Contact". ivp.com. 
  30. ^ "Contact Us - Relay Ventures". relayventures.com. 
  31. ^ Chernova, Yulia. "Redpoint Clean-Tech Partner Departs, Likely to Join Bright Capital." Dow Jones Venturewire, October 4, 2012.

Coordinates: 37°25′15″N 122°12′29″W / 37.42082°N 122.20808°W / 37.42082; -122.20808