Because when they're doing well, the benefits (to them) out-way the costs. It was only really obvious to me what the benefits were after I visited Palo Alto. F

Because when they're doing well, the benefits (to them) out-way the costs. It was only really obvious to me what the benefits were after I visited Palo Alto. For Stanford spinouts, you can literally go visit 10 VCs within a 20min walk. If must make life so much easier. For larger companies, they still want to interact with VCs and aquire startups. They also want access to other forms of capital/banking services which are available in the area.