The startups bringing Oakland back

THE RISE OF OAKLAND

Oakland, California has Luis María Peralta to thank for its name. Peralta was a rancher and soldier in the Spanish army.

Conquistadors had claimed the area surrounding modern-day Oakland, forming colonies up and down the Californian coastline.

Once 21 years of age, Peralta joined the Spanish army and was stationed in San Francisco.

When a neighboring Indian tribe attacked a Spanish priest, Peralta led the entire San Francisco garrison into the valley to pursue the attackers.

Catching the tribe off-guard at their own village, he secured a swift victory and favorable recognition within the army.

Years later, the Spanish governor granted Peralta a plot of land for his service to the crown.

The grant of land was truly massive - 44,800 acres in total were awarded to Peralta, which he eventually distributed to his children

The Peralta’s main ranch included a long stretch of oak trees, leading the family to call the area encinal, a Spanish word for Oak Grove. When loosely translated to English, the place became known as Oakland.

Oakland is a stone’s throw from San Francisco, and the two grew rapidly during the gold rush. It greatly benefitted from being the endpoint of the Transcontinental Railroad, serving as the western end for the line.

Oakland seemed to do particularly well during the Industrial Revolution, attracting blue collar workers from across the country. The population quadrupled in ~50 years, swelling to nearly 400,000.

OAKLAND STUMBLES AS JOBS DISSIPATE

Oakland’s rise was meteoric, but hit a wall in the 1960s. The ending of World War 2 and offshoring of jobs stymied economic growth.

To make matters worse, gang violence cropped up during this time period as well. Oakland’s violent crime spiked to twice of New York or neighboring San Francisco.

Elevated crime levels continue to plague the city even to this day - and that crime costs money.

It’s estimated that Oakland’s per-capita cost of crime stands at $5,710/year.

That dwarfs the average for large U.S. cities, currently at $3,325.

This has factored heavily into a Oakland’s budget deficit. The city witnessed a $53M deficit in 2023, and the loss is expected to widen to $129M in 2024. 

Oakland’s struggles have become most visible through the departure of major sports teams:

• 2019: Golden State Warriors relocate to San Francisco

• 2020: Oakland Raiders relocate to Las Vegas

• 2024: Oakland Athletics played their final game in Oakland, with plans to move to Las Vegas

The departure of sports teams have stung the residents of Oakland, who fiercely protested the moves. For the A’s departure, fans attempted a reverse boycott - showing up to the last season opener with ‘Sell the team’ shirts.

Oakland residents largely felt betrayed by the departure of their beloved sports teams - they griped that owners were moving cities so that they could make more money.

It’s not just sports - businesses have closed down stores in the area as sales diminish and safety concerns loom. I think it’s fair to say that Oakland residents want their sports teams and businesses to stay - and they’re pursuing a unique method to make that happen.

A NOVEL APPROACH TO SPORTS…AND BUSINESS

Often times, the decision for organizations to leave Oakland lies in a few people - the owners.

And what better way to make those decisions than to become an owner yourself?

Enter equity crowdfunding.

The Oakland Roots & Souls is the organization behind Oakland’s male and female soccer teams. They’ve utilized crowdfunding to raise ~$4M from 5,000+ residents, fans, and investors.

By placing ownership into the hands of its fans, it practically ensures that the team will never leave Oakland. This is really where crowdfunding shines - combining community pride with economic opportunity… that’s what crowdfunding was built on.

Oakland’s minor league baseball team took note of the Roots’ success and they have also conducted a crowdfunding round. According to their website, the funding round was successfully oversubscribed.

It’s not just Oakland sports that are tapping into crowdfunding - hot new Oakland-based startups are as well:

• 💊 Cadence: Over-the-Counter birth control, raised $750K on Wefunder

• ❤️‍🩹 Elemeno Health: Content platform for nurses, YC graduate

These startups are keeping business in Oakland, providing jobs, and much more.  

Oakland may have fallen on tough times, but initiatives like this spell the possibility of a bright future for the city.

Across the startups listed above, at least $4.8M has been raised exclusively through crowdfunding for Oakland-based startups.