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Austinite here. Interesting article. > how can I go about doing that if I’m not being supported > by VCs in Austin? As a three year old firm, you might be ru

by arcanus 11y ago

Austinite here. Interesting article. > how can I go about doing that if I’m not being supported > by VCs in Austin? As a three year old firm, you might be running out of runway. I don't disagree with your statement that Austin VCs are more risk adverse than SF, but in my experience we do have a serious funding environment that many cities would be envious of. Austin is not really competing with SF, but occupies a niche with a nice tech ecosystem while simultaneously remaining affordable with a nice work-life balance. [The affordability is rapidly eroding as the city-center grows]

wavefunction 11y ago
I would disagree that Austin is all that affordable any more. I can't comment on the venture scene here as my projects are boot-strapping right now.
- afarrell 11y ago
  Austin is certainly still more affordable than Boston, as someone who made the move from the latter to the former.
  - wavefunction 11y ago
    I almost included another line that Austin is probably more affordable than SF, NYC and Boston but I guess I would point out that Boston is likely more affordable than London.
shloky 11y ago
Austinite here too. I agree the funding infrastructure in Austin is lacking. I think that's a function of time though, not of interest/capability. We'll need more and more diverse funding sources to get 'there'. Generally, the way startup ecosystems go - people make a big exit, fund locally. We're still riding the first bubble (Baer et al, Trilogy etc). There's a good book on this too. Of course, that diversification is happening naturally, but yeah, we lack the funding infrastructure of a lot of other cities, and acknowledging that fact, and making that fact explicit, and not denying it ("Look we have customer service shops of big companies!") or a slight of hand ("SV has something different to offer, we're unique!") would be a giant step forward. Austin's not there (yet). (Also, it's hilarious how CPG is huge in Austin thanks to Deep Eddy, Rhythm, and SKU but it's not as sexy famous as even the enterprise software stuff.)
chiph 11y ago
It could be runway, it could also just be timing - there's lots of talk about how the economy is slowing, so investment in anything that doesn't currently produce profits, with strong indications of increased profits in the future, is probably going to be difficult to get. Austin definitely does it's own thing. And gets derided as "the home of the lifestyle business". But if you're profitable and have happy customers, absurd valuations and the drama that goes along with them aren't really needed. As a note to Joah - I was surprised I couldn't enter a zipcode.

by arcanus 11y ago

wavefunction 11y ago

I would disagree that Austin is all that affordable any more. I can't comment on the venture scene here as my projects are boot-strapping right now.

afarrell 11y ago
Austin is certainly still more affordable than Boston, as someone who made the move from the latter to the former.
- wavefunction 11y ago
  I almost included another line that Austin is probably more affordable than SF, NYC and Boston but I guess I would point out that Boston is likely more affordable than London.

shloky 11y ago

Austinite here too. I agree the funding infrastructure in Austin is lacking. I think that's a function of time though, not of interest/capability. We'll need more and more diverse funding sources to get 'there'. Generally, the way startup ecosystems go - people make a big exit, fund locally. We're still riding the first bubble (Baer et al, Trilogy etc). There's a good book on this too. Of course, that diversification is happening naturally, but yeah, we lack the funding infrastructure of a lot of other cities, and acknowledging that fact, and making that fact explicit, and not denying it ("Look we have customer service shops of big companies!") or a slight of hand ("SV has something different to offer, we're unique!") would be a giant step forward. Austin's not there (yet). (Also, it's hilarious how CPG is huge in Austin thanks to Deep Eddy, Rhythm, and SKU but it's not as sexy famous as even the enterprise software stuff.)

chiph 11y ago

It could be runway, it could also just be timing - there's lots of talk about how the economy is slowing, so investment in anything that doesn't currently produce profits, with strong indications of increased profits in the future, is probably going to be difficult to get. Austin definitely does it's own thing. And gets derided as "the home of the lifestyle business". But if you're profitable and have happy customers, absurd valuations and the drama that goes along with them aren't really needed. As a note to Joah - I was surprised I couldn't enter a zipcode.