Welcome back to The Sunstone Way.
We got yet another indicator last week of California’s economic dominance with the release of Fortune Magazine’s prestigious Fortune 500 – the list of the 500 largest companies in the United States based on revenue.
California now is home to more Fortune 500 companies than any other state in the country. The latest count has 57 companies headquartered here compared to 52 in New York and in Texas.
Diverse Categories
It comes as no surprise that high tech companies are prominent on the list – Apple in Cupertino, Alphabet (Google) in Mountain View, Nvidia and Intel in Santa Clara, and HP (Hewlett Packard) in Palo Alto among others.
But there’s also entertainment with Walt Disney headquartered in Burbank along with Netflix, Live Nation, etc.; healthcare with Molina Healthcare in Long Beach, Sempra in San Diego and more; high tech manufacturing, retailers, even restaurant chains all on the list.
Texas continues to compete by attracting companies with little regulatory oversight and low taxes. New York, including America’s most populous city, leans on its long history as the banking and finance mecca.
So why California?
All About Innovation
In this, the computer age, most people point to Silicon Valley as the birthplace of much of the technology we rely on today. The story of Apple’s inception and rise to dominance is studied in business schools, and OpenAI, the developer of the ChatGPT that brought Artificial Intelligence to the world at large, launched in nearby San Francisco.
Innovative and entrepreneurial Californians led the way in other fields as well, from healthcare technology to space and aeronautics (Space Beach in Long Beach is a prime example). Advances in clean energy like next generation electrical sources and uses were and continue to be California news on a weekly, if not daily, basis.
California’s emphasis on innovation and entrepreneurship goes far beyond the Fortune 500 – that’s why the state is the fourth biggest economy in the world. Our own John Shen is a perfect example of that. John relocated to California to launch American Lending Center – now a nationwide firm with international offices – because of the business climate here.
When John created Sunstone Management, the California setting was even more important. That’s because the Sunstone founding principle of public-private partnerships (P3) grew up in California.
State Support
Economic development has been a priority for every level of government for a long time – it drives the growth that powers cities, states and nations. California was an innovator early on in that field, creating the IBank (California Infrastructure and Economic Development Bank) more than 30 years ago.
A range of financial help including grants, loans and loan guarantees is available from IBank for both businesses and local governments. It facilitates P3 projects in particular, helping cities and special districts get across the finish line for financing of public infrastructure.
IBank also has joined the effort to turn California into a clean energy, zero-pollution state with Climate Catalyst and Climate Incentive loans on the near horizon. Add the efforts of the California Energy Commission to support and advance research and development of clean energy, and the goal appears to be obtainable.
Next Steps
California does not rest on its laurels, either. In 2012, the Governor’s Office of Business and Economic Development (GO-Biz) was created to offer a wide range of assistance to business owners, local government officials and more to facilitate innovation and growth. GO-Biz is designed to provide no-cost help for everything from permit assistance to international trade development.
I’ve been honored to work with Dee Dee Myers, the GO-Biz director, and know how supportive she is of P3 projects. That’s whether the project involves state government, educational institutions or municipalities.
GO-Biz has entire offices dedicated to Energy, Innovation, Small Business, Regional Economic Development Initiatives and more. The IBank is under the GO-Biz umbrella as well.
In short, GO-Biz is the place to go when you need connections to partners to get something done. I am a big fan. After all, That’s The Sunstone Way!
Remember, always be a Sunstone.
John Keisler
CEO & Managing Partner
Sunstone Management, Inc.
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©Sunstone Management, Inc. 2025