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It’s the network effects you mentioned. The reason to be here is because people are here. While that doesn’t seem like something that _has_ to be in California
by tyre 8y ago
It’s the network effects you mentioned. The reason to be here is because people are here.
While that doesn’t seem like something that _has_ to be in California, it is already here and that’s not something you can just move.
As for why other cities have a hard time competing, it’s the same thing. If CA is perceived as “where innovation happens” then people will look for jobs here. They won’t even look at e.g. Kansas City or Charlotte or wherever, even if there are open roles there.
It doesn’t have to be this way and probably won’t be in ten or twenty years. Especially after this wave of IPOs, SF will likely be unlivable for most. If companies can continue to raise enough money to pay equivalently higher salaries, then the boom can continue a while longer. Otherwise, the numbers don’t make sense.
- stcredzero 8y agoIt’s the network effects you mentioned. The reason to be here is because people are here. When a scene gets hot, there's always the danger of grouthink. There is far too much groupthink here. Much of it now is even the toxic kind. "Fear is the mind-killer." However, fear is only the start, only the beachhead. Groupthink is the main body, and it's the mechanism whereby the mind-killing starts to result in real world consequences. When a scene gets hot, and there's real money and power to be had, it also attracts the sociopaths. https://meaningness.com/geeks-mops-sociopaths https://meaningness.com/geeks-mops-sociopaths
- PaulHoule 8y agoIt's all about the exits. You could never get an exit if you were based in Chicago or St. Louis or Montana, etc.
- elpakal 8y agoBased in Colorado. Just wondering if you could expand on this. Seems like what you are saying is no startups in Montana ever get exits - personally I think that's because startups seeking an exit end of moving to The Bay Area because of all the factors being mentioned here.
- chrisco255 8y agoWho cares about exits? Let's build sustainable businesses that operate profitably without insane VC money.
- borski 8y agoI know you’re asking earnestly, but the sad truth is the vast majority of startup founders care about the exit. Usually they also fail, unless it isn’t their main motivation, but the answer to your question is: most people who start companies.
- Nasrudith 8y agoYeah in many cases it is "get something cool first and then leave it for somebody else to come up with a business model". Given the fleeting nature of success it makes sense to sell the first one and get enough to retire or be able to afford to lose.
- stcredzero 8y agoBetween this, and the great-grandparent comment, this is a perspective-changing thread.
- tptacek 8y agoYou might have a hard time getting funding in Chicago. I don't see what Chicago would have to do with your getting an exit. Duo just sold to Cisco for $2.3B, and they're in Ann Arbor.
- d-sc 8y agoSpeaking as a Montanian, it’s been done before. https://en.m.wikipedia.org/wiki/RightNow_Technologies https://en.m.wikipedia.org/wiki/RightNow_Technologies
- sdaslo 8y agoMostly weather and culture, imho. California is much more liberal and foreigner welcoming than other parts of the us. And a large part of the well educated tech force is graduating international students. Regarding weather .. very hard to find same easy weather elsewhere in the USA. Seattle comes close .. and that’s why it’s also impacted, just to a lesser extent.
- pascalxus 8y agoAustin is just as good 9 months out of the year, I hear. Albuquerque NM, is every bit as good (i'm told) as the bay area, with 8 times cheaper housing. there are many more examples you can find in the US that have nearly as good weather.
- house9-2 8y agoIt is not just 'good weather', the actual climate is way better due to proximity to the pacific ocean.
- headsupftw 8y agoWell, you heard wrong. Both places are much hotter in the summer than the bay area.
- dreamcompiler 8y agoAlbuquerque has awesome weather,* no significant earthquakes, gorgeous scenery (tons of movies are shot around here), fantastic cultural diversity, a decent university, great food, plenty of housing and land to build on, and low taxes and CoL. *Albuquerque is a mile high, so its climate is much more like Denver than like Phoenix. What's not so great are a somewhat dysfunctional and corrupt state government, second-class health care and public schools, and a high-tech community that revolves almost entirely around defense work that requires a security clearance. Many of these would be remedied if Albuquerque somehow got a significant influx of startups.
- dreamcompiler 8y agoI find Austin uncomfortable in summer because of its humidity. Albuquerque is about the same temperature as Austin but because it's dry it's not uncomfortable.
- anonymous5133 8y agoYou can still take advantage of the network effect and not be located in California. Reno,NV to SF via southwest is under $100 one way and the actual flight is around 90 mins or less.