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Figure out a way to reduce the not-in-San-Francisco penalty for startups. There are some very good reasons why startups flock to the bay area, including "lots

Figure out a way to reduce the not-in-San-Francisco penalty for startups. There are some very good reasons why startups flock to the bay area, including "lots of available talent" and "that's where the VCs are", but there are also problems with being in the bay area -- talent is considerably more expensive (due in part to the cost of housing) and visa issues (particularly under the current presidency) being the first two which come to mind. If you can find some way to give non-San-Francisco startups the same advantages that San Francisco startups have -- better tools for remote workers, for example, so that companies can easily hire from anywhere rather than needing to be where the largest number of potential employees are found; or something to make VCs interested in investing in companies which aren't within a narrow radius of Sand Hill (since I've never dealt with VCs, I have no idea what such a solution would look like) -- then you'll create a huge amount of value for companies around the world and it should be easy to transfer some of that value into your pockets.

nugget 10y ago
Part of the San Francisco premium seems to be the concentration of M&A dollars from local incumbents who constantly acquire more local talent. I'm an investor in half a dozen startups that would have already been acquired if they were in the Bay Area, but instead struggle to build viable standalone businesses since they are located elsewhere. Perhaps this is part of the reason YC focuses most of its time, money, and effort on local teams. Besides the concentration of resources for those fortunate few who become rocketships, the downside protection on the rest of the portfolio seems much better (in human, not just dollar terms).
skynode 10y ago
>then you'll create a huge amount of value for companies around the world and it should be easy to transfer some of that value into your pockets. Corollary: It's probably time for a much wider adoption of bitcoin in tech. To transfer that value from halfway around the world to personal pockets capitalism style, we need crypto to become a primitive member of apps, markets and tech deals, and no longer a big deal.
dirtyaura 10y ago
I wonder if this is really solvable by technology and tools? In my opinion, tools for effective remote working are there. Github, Slack style communication, collaborative project management tools, CI tools in cloud. Design tools could be more collaborative, but it ain't a showstopper. Video conferencing still sucks now and then, but 50 years after the Mother of All Demos, it starts to be usable enough :) I feel that it is something else, culture issue, that still makes teams that are physically in the same location, to perform more effectively. Fixing work culture to support remote work better is likely the key instead of tech and tools. And money will follow: when VCs believe that remote teams and remote networking are as effective, they will invest everywhere.
- btown 10y ago
  There's nothing quite like sitting next to someone to facilitate the rapid course-corrections that maximize the chances for early-stage startups to thrive. That said, places like New York are growing as hubs of talent where it's possible to assemble talented in-person teams. And niche investors who understand i.e. the advertising/media/fintech spaces can mitigate the lack of Silicon Valley VCs for companies focused there. Silicon Alley is very much a thing on 23rd Street!
  - kozak 10y ago
    That's exactly the opportunity for startups: to create something that is quite like sitting next to someone.
    - azatris 10y ago
      Holograms? Even a half-assed hologram, but with excellent voice would do the trick.
- cperciva 10y ago
  I wonder if this is really solvable by technology and tools? I have no idea. The answer might turn out to be a social question of redefining the concept of a "job", for all I know. If the answer was obvious, I'm sure it wouldn't be an untapped opportunity. ;-)
deleted 10y ago
[deleted]
free2rhyme214 10y ago
I'll stick with an in person Paul Graham meeting any day over Go To Meeting or Hololens.
aclimatt 10y ago
In a similar vein as dirtyaura's comment, it's not a technology or tools problem. It's a people and relationships problem. Successful businesses are built on the backs of relationships. Your product is important, your tech is somewhat important, but THE most important part of a building what many would call a "successful" business is the relationships you create. It doesn't matter what you're trying to achieve -- convince people to buy your product, convince people to work for your company, convince VCs to give you money, convince Google to buy you -- all of these things may begin on the premise of merit, price, features, value, but they end up based on the relationships built between the people involved. Deals are closed over drinks. People work for people they enjoy spending time with. VCs invest money in people they trust. Yes, all things in life have exceptions, but the longer you stay in business, the more you realize that businesses are run by people -- they are not opaque fact-driven entities -- and people are social creatures. The actual reason that people in San Francisco still cling to an age-old culture of doing business together in person instead of over Slack is because humans enjoy spending physical time around other humans. Maybe it's communication bandwidth, maybe it's something else, but until VR replaces physical intimacy, there is no perfect substitute. If you want to succeed outside of San Francisco, begin building the relationships you need to do so. People can claim that Slack, Hangouts, and the phone match the effectiveness of physical presence, but try switching to a permanent long-distance relationship with your significant other. Good luck.

nugget 10y ago

Part of the San Francisco premium seems to be the concentration of M&A dollars from local incumbents who constantly acquire more local talent. I'm an investor in half a dozen startups that would have already been acquired if they were in the Bay Area, but instead struggle to build viable standalone businesses since they are located elsewhere. Perhaps this is part of the reason YC focuses most of its time, money, and effort on local teams. Besides the concentration of resources for those fortunate few who become rocketships, the downside protection on the rest of the portfolio seems much better (in human, not just dollar terms).

skynode 10y ago

>then you'll create a huge amount of value for companies around the world and it should be easy to transfer some of that value into your pockets. Corollary: It's probably time for a much wider adoption of bitcoin in tech. To transfer that value from halfway around the world to personal pockets capitalism style, we need crypto to become a primitive member of apps, markets and tech deals, and no longer a big deal.

dirtyaura 10y ago

I wonder if this is really solvable by technology and tools? In my opinion, tools for effective remote working are there. Github, Slack style communication, collaborative project management tools, CI tools in cloud. Design tools could be more collaborative, but it ain't a showstopper. Video conferencing still sucks now and then, but 50 years after the Mother of All Demos, it starts to be usable enough :) I feel that it is something else, culture issue, that still makes teams that are physically in the same location, to perform more effectively. Fixing work culture to support remote work better is likely the key instead of tech and tools. And money will follow: when VCs believe that remote teams and remote networking are as effective, they will invest everywhere.

btown 10y ago
There's nothing quite like sitting next to someone to facilitate the rapid course-corrections that maximize the chances for early-stage startups to thrive. That said, places like New York are growing as hubs of talent where it's possible to assemble talented in-person teams. And niche investors who understand i.e. the advertising/media/fintech spaces can mitigate the lack of Silicon Valley VCs for companies focused there. Silicon Alley is very much a thing on 23rd Street!
- kozak 10y ago
  That's exactly the opportunity for startups: to create something that is quite like sitting next to someone.
  - azatris 10y ago
    Holograms? Even a half-assed hologram, but with excellent voice would do the trick.
cperciva 10y ago
I wonder if this is really solvable by technology and tools? I have no idea. The answer might turn out to be a social question of redefining the concept of a "job", for all I know. If the answer was obvious, I'm sure it wouldn't be an untapped opportunity. ;-)

deleted 10y ago

[deleted]

free2rhyme214 10y ago

I'll stick with an in person Paul Graham meeting any day over Go To Meeting or Hololens.

aclimatt 10y ago

In a similar vein as dirtyaura's comment, it's not a technology or tools problem. It's a people and relationships problem. Successful businesses are built on the backs of relationships. Your product is important, your tech is somewhat important, but THE most important part of a building what many would call a "successful" business is the relationships you create. It doesn't matter what you're trying to achieve -- convince people to buy your product, convince people to work for your company, convince VCs to give you money, convince Google to buy you -- all of these things may begin on the premise of merit, price, features, value, but they end up based on the relationships built between the people involved. Deals are closed over drinks. People work for people they enjoy spending time with. VCs invest money in people they trust. Yes, all things in life have exceptions, but the longer you stay in business, the more you realize that businesses are run by people -- they are not opaque fact-driven entities -- and people are social creatures. The actual reason that people in San Francisco still cling to an age-old culture of doing business together in person instead of over Slack is because humans enjoy spending physical time around other humans. Maybe it's communication bandwidth, maybe it's something else, but until VR replaces physical intimacy, there is no perfect substitute. If you want to succeed outside of San Francisco, begin building the relationships you need to do so. People can claim that Slack, Hangouts, and the phone match the effectiveness of physical presence, but try switching to a permanent long-distance relationship with your significant other. Good luck.