Tim Draper’s Bold Vision: Why Splitting California Into Six States Could Fix Its Future
Tim Draper, renowned venture capitalist and founding partner of Draper Fisher Jurvetson (DFJ), recently earned the prestigious SVForum Visionary Award for his transformative impact on Silicon Valley. Following in the footsteps of his father, Bill Draper—a pioneer in venture capital—Tim used the platform to champion his controversial Six Californias initiative, a proposal to divide California into six independent states.
The Case for Six Californias
Draper’s proposal may seem radical, but his track record speaks for itself. As an early investor in groundbreaking companies like Hotmail, Skype, and Baidu, he has a knack for spotting disruptive ideas. His argument? California’s current governance is failing its citizens.
Key Issues Driving the Proposal:
- Government Accountability: California ranks last in business-friendliness and 47th in K-12 education.
- Economic Disparity: 20% of Californians live below the poverty line, despite the state’s wealth.
- Infrastructure Decay: Infrastructure spending has plummeted from 23% to just 3% of the budget.
- Lack of Choice: Residents have no alternative to a single, inefficient government system.
Draper’s solution? Six smaller, more agile states that can tailor policies to local needs. “This isn’t just about redrawing borders,” he explains. “It’s about giving people a government that works for them.”
The Challenges Ahead
To get the initiative on the November ballot, Draper’s team must gather 807,615 signatures by July 18. Skeptics question the feasibility, but Draper remains undeterred.
“You need to start somewhere. Even if these new states perform averagely, it’s a massive improvement over California’s current dysfunction.”
Why Silicon Valley Supports the Idea
- Localized Governance: Silicon Valley would become its own state, free to enact tech-friendly policies.
- Economic Revival: Regions like Central California could attract manufacturing jobs currently fleeing to Texas or Louisiana.
- Education Reform: Smaller states could overhaul failing school systems without bureaucratic gridlock.
The Bigger Picture: A State in Crisis
Draper’s concerns extend beyond economics. He highlights:
- Gentrification Pressures: Poor infrastructure and rising costs are fueling resentment in cities like San Francisco.
- Education Collapse: California’s drop from 1st to 47th in education rankings threatens future prosperity.
- Job Exodus: Major employers like Disney and Sony are relocating jobs to lower-cost states.
“If we don’t fix education, poverty will skyrocket. We’re already seeing the consequences.”
Draper’s Vision for the Future
Despite California’s challenges, Draper is bullish on Silicon Valley’s innovation economy, predicting “four or five more great years” for startups. He’s particularly excited about:
- Bitcoin: As a catalyst for faster, more liquid global transactions.
- 3D Printing: A game-changer for manufacturing and healthcare.
- Crowdsourcing: Revolutionizing service delivery through global talent networks.
The Bottom Line
Draper’s Six Californias plan is a provocative response to systemic failures. Whether it gains traction or not, it underscores a urgent truth: California’s status quo is unsustainable. As Draper puts it, “When a monopoly fails its customers, it’s time for a reboot.”
Image Credits: GeoCurrents (Six Californias map), Dean Takahashi (Visionary Awards photo)
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