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One thing to note. Since the time Bay Area became “expensive”, contrary to expectations it is actually crushing other geographies (exception being China) when i
by dmode 8y ago
One thing to note. Since the time Bay Area became “expensive”, contrary to expectations it is actually crushing other geographies (exception being China) when it comes to massive fund raising for startups. Just this week Flexport raised $1bn and DoorDash raised $400mn. A few weeks back Nuro raised $1bn and Juul got $12bn. There is an excellent Crunchbase article on this https://news.crunchbase.com/news/how-northern-californias-reality-distortion-field-is-reflected-in-startup-funding/ https://news.crunchbase.com/news/how-northern-californias-re...
Clearly the lesson is that if you want to scale, you are better of being here
- austincheney 8y agoI would consider fundraising and local cost of living to be completely orthogonal. Fundraising is easier when there is a cluster of potential donors in a central geography. Other important factors are regulatory environment, taxes, potential employees, transportation, and so forth.
- dmode 8y agoI mentioned fundraising as a proxy for health of the startup sector in the Bay Area. The expectation was that with high cost of living and relentless FAANG hiring, startups will move en masse to other locations. But fundraising data suggests otherwise.