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It does seem unlikely the SF VC exists due to SF real estate, interesting theory though, I'm all ears.
by refulgentis 3y ago
It does seem unlikely the SF VC exists due to SF real estate, interesting theory though, I'm all ears.
- brigadier132 3y agoI mean, you are adding more to my claim by stating it "exists due to SF real estate". I never said that's the only reason it exists, but you know what, that might be the only reason it's so hyper localized to one place. Let's look at the incentives: Pretend you are a wealthy VC with tens of millions invested in San Francisco real estate. You have been given billions by LPs to manage. If I, as the person that has control over how this money can be distributed, only invest those billions in the bay area and bring all these high skilled workers to this one place I can actually impact the price of real estate and triple the tens of millions I already have invested. Once those high skill workers move here they will remain, even after the initial startup goes under because they will move to a different startup. Now if all the VCs are doing this and they all control large multi billion dollar funds...