How is the new tech crowd impacting the local economy? A Miami caterer can tell you
“I don’t know if South Florida will ever be the same.”
That is how Lina Cruz summarizes the impact of the influx of newcomers to the Miami area over the past year. As the COO of longtime local event catering firm Bill Hansen Hospitality Group, Cruz represents a business that helps form the backbone of the region’s economy.
And if you are in the business of providing services to folks sitting on lots of capital these days, it’s boom times: Cruz estimates business is now up about a third from pre-pandemic levels.
“We have all our clientele that have known us through the years — and they’re all in the mood to celebrate,” she said. “Then we have all the weddings that were canceled and have all been rescheduled for this year. Then, we have a whole swarm of new clients here now.”
She continued: “We are overwhelmed — the hours, the setups are very long, we’re having to hire a lot more staff than we ever have. So basically, we definitely have felt all of this.”
Economic data released Friday bear out that the area’s recovery is roaring ahead: Miami-Dade’s unemployment rate fell from 5.7% to 3.8% in October, a new pandemic low (by comparison, the pre-pandemic low was 1.6%).
Xio Fermin, owner of MiamiDJs, has seen the same results from the newcomers. These days, 50% of his business is from new arrivals. He has recently handled music for clients that include Tesla, Google, IBM and Microsoft — all at South Florida events.
“We went from pretty much a dead year to, starting in the last 3 months, everything turned around,” he said, “and the event industry here has now blown up — we’re sold out every weekend.”
The newcomers are more likely to have more money these days — along with an aggressive willingness to spend it, given how uncertain life has now become, Fermin said.
“We’re seeing clients with larger budgets than ever before,” he said. “A lot of destination weddings — and a lot of new corporate clients from New York City and California. Pretty much all of Silicon Valley is here now.”
Not everybody is winning out at the same pace, however. Cruz acknowledges that some longtime customers are experiencing sticker shock from an increase in event prices. That cost growth is not solely the result of local factors — but it does mean that those who have not seen an increase in their capital stacks may be getting left behind.
“Some of the ones who were regulars may be saying, ‘This used to be this much — I used to pay X’. We did, too. Unfortunately, those are not the costs anymore.”
But Cruz says that overall, it’s a good time to be in business in South Florida.
“[The influx] has created a lot more work — people are making more and there’s just so many openings, everyone is hiring,” she said. “If you’re looking for opportunity, Florida is the place to be.”
DDA donates $1M to Miami Dade College AI initiative
The Miami Downtown Development Authority will invest $1 million over three years in a Miami Dade College effort to increase exposure to artificial intelligence across its curricula.
“This signals that government agencies can go beyond filling potholes,” said Philippe Houdard, co-chair of the DDA’s enterprise committee and CEO of Pipeline Workspaces. “It’s about leaning into the future and creating job opportunities.”
The funding comes as the DDA and other local government officials look for ways to beef up Miami’s local talent pipeline.
“We want to make sure we’re making training and education available in a specific technology that’s driving so much change,” Houdard continued. “We want to make that development available broadly so more can participate with what’s going on in Miami, and make sure we have the people and talent to make sure companies here can grow.”
The college, which is already building an artificial intelligence center at its North Campus, plans to announce the details of its new, school-wide AI effort in 2022.
Rabois-led OpenStore raises $75M
OpenStore, the Miami-based company co-founded by Founders Fund’s Keith Rabois and Atomic’s Jack Abraham, announced it had raised $75 million in a Series B round led by General Catalyst. OpenStore buys and sells e-commerce businesses, with a focus on Shopify sites.
Asked about its local hiring plans, co-founder and president Michael Rubenstein said in an email:
“Recruiting locally in Miami is an important part of the OpenStore talent strategy. We want to tap into the amazing talent that is already based here, in addition to relocating talent from out of state. We regularly host meetups and participate and sponsor community events. Just last month, we partnered with Women in Miami Tech to host an incredible networking event on our rooftop. We also work with local recruiting agencies like StevenDouglas, partner with job boards like Refresh Miami, and maintain relationships with local press to keep people updated.”
SoftBank invests in Miami-based gift-giving app
Goody, a new gift-giving app from Miami-based founder Edward Lando — a co-founder, along with Jon Oringer, of the new Pareto Holdings company building group — has raised $15 million from SoftBank’s Latin America fund.
eMerge Americas deal with Tampa group
eMerge Americas announced a strategic partnership with Synapse Florida, a nonprofit group that connects Florida’s innovation communities, to strengthen the connections among Florida’s major tech ecosystems. The groups are coordinating a year-round calendar of innovation events across the state, including Synapse Summit (Feb 17, 2022, in Tampa), the global eMerge Americas conference (April 18-19, 2022, in Miami), and Synapse Orlando (Oct. 2022).
AI content moderation platform moves to Miami
Spectrum Labs, which uses artificial intelligence to moderate content on digital platforms, is moving its headquarters to Miami, though it will remain a remote-first operation. Spectrum says it hopes to access “a diverse and skilled talent pool.”
This story was originally published November 21, 2021 at 6:00 AM.
