TLDR:
- Groove plans to double its workforce in San Diego after securing $45 million in funding.
- The company’s expansion in San Diego signifies a strategic shift and highlights the city’s growing importance in the tech industry.
Groove Expands in San Diego, Plans to Double Workforce After $45M Funding Round
When Bay Area software startup Groove established a satellite office in San Diego two years ago, it was initially intended to be a sales hub. However, the company has experienced significant growth in the region, with two-thirds of its 110 employees now based there, making it Groove’s largest outpost post-pandemic. With a recent $45 million funding round, Groove announced plans to double its workforce in San Diego, primarily focusing on boosting its software engineering and developer teams. This move reflects a strategic shift for the company, signifying a changing landscape for tech venture capital and executive talent.
Chief Executive Chris Rothstein and the majority of Groove’s executive team have relocated to San Diego, underscoring the company’s commitment to the region. The Series B funding round was led by Viking Global Investors, with participation from existing investors like Capital One Ventures and Uncork Capital, bringing the total funding to $57 million. Groove’s collaboration with San Diego’s Seismic further enhances its presence in the tech ecosystem, particularly in the sales software domain.
The expansion and investment by Groove and other tech companies in San Diego represent a broader trend of geographic diversification within the tech industry. It highlights the city’s emerging role as a tech hub capable of attracting high-caliber tech talent and investment. Major venture funds like Viking Global Capital establishing a presence in the region indicate San Diego’s growing significance in the tech landscape, promising continued growth and innovation.
