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> Are investors so emotionally tied to one geographic area that long-term investing in other areas of the US is strictly verboten? I don't think it is quite as

> Are investors so emotionally tied to one geographic area that long-term investing in other areas of the US is strictly verboten? I don't think it is quite as conspiratorial as you make it out to be. I was speaking to an active angel investor last night. He said he won't do a deal that is much more than an hours drive away. He feels like he can't really participate (as an advisor) to a company that he can't easily reach. It is not unlikely that many (most?) of the Silicon Valley investors feel the same way.

davidw 14y ago
Some companies and businesses manage to cobble together globe-spanning supply chains, so the excuse that they can't interact with "far away" people seems a bit dubious. Sooner or later, there will be VC's that figure out how to interact in a way that, while not 'as good' as being there in person, will be 'good enough', and will reap some nice profits from it. There are a lot of good things about SV, but there are also some good reasons to get out and go to smaller hubs - stuff like Boulder, Portland, and other places like that where life is more enjoyable.
- WiseWeasel 14y ago
  Angels are early-stage investors, and are often close advisers to the people they invest in.
mgkimsal 14y ago
I didn't say it was a conspiracy, but emotional ties. His wanting to stay in a particular geographic area plus his desire to only invest in projects he can drive to is limiting him. That's fine. I'm not even suggesting he's complaining about a talent shortage. But others are. Might he not have a similar quality of life and have access to some other great companies to invest in within an hour's drive and have less investment competition should he choose to move to, say, Louisiana? Or Mississippi? Or Tennessee? Or Texas?
- sabat 14y ago
  It's not about emotion. It's about concentration of talent and drive, and geography does matter. People here in California, particularly in the Bay Area, think differently (apologies to SJ). Great startups are usually based on some sort of rule breaking, game change, or disruption. The non-conformist culture in CA especially lends it to this. That's why startups thrive here. Edit: it's no coincidence that the startup hub in Texas is in Austin, the only place in Texas I'm aware of that has a non-conformist culture.
  - mgkimsal 14y ago
    "He said he won't do a deal that is much more than an hours drive away. He feels like he can't really participate (as an advisor) to a company that he can't easily reach." "He feels" is where I got emotion from.
    - nknight 14y ago
      Touch a piece of sandpaper, it "feels" rough. But there's no emotion. If you must, substitute "believes" for "feels" in this scenario and you'll probably understand better.
- _pius 14y ago
  Might he not have a similar quality of life and have access to some other great companies to invest in within an hour's drive and have less investment competition should he choose to move to, say, Louisiana? Or Mississippi? Or Tennessee? Or Texas? Why would someone in a position to make angel investments move to a random new city just to have less investor competition?

davidw 14y ago

Some companies and businesses manage to cobble together globe-spanning supply chains, so the excuse that they can't interact with "far away" people seems a bit dubious. Sooner or later, there will be VC's that figure out how to interact in a way that, while not 'as good' as being there in person, will be 'good enough', and will reap some nice profits from it. There are a lot of good things about SV, but there are also some good reasons to get out and go to smaller hubs - stuff like Boulder, Portland, and other places like that where life is more enjoyable.

WiseWeasel 14y ago
Angels are early-stage investors, and are often close advisers to the people they invest in.

mgkimsal 14y ago

I didn't say it was a conspiracy, but emotional ties. His wanting to stay in a particular geographic area plus his desire to only invest in projects he can drive to is limiting him. That's fine. I'm not even suggesting he's complaining about a talent shortage. But others are. Might he not have a similar quality of life and have access to some other great companies to invest in within an hour's drive and have less investment competition should he choose to move to, say, Louisiana? Or Mississippi? Or Tennessee? Or Texas?

sabat 14y ago
It's not about emotion. It's about concentration of talent and drive, and geography does matter. People here in California, particularly in the Bay Area, think differently (apologies to SJ). Great startups are usually based on some sort of rule breaking, game change, or disruption. The non-conformist culture in CA especially lends it to this. That's why startups thrive here. Edit: it's no coincidence that the startup hub in Texas is in Austin, the only place in Texas I'm aware of that has a non-conformist culture.
- mgkimsal 14y ago
  "He said he won't do a deal that is much more than an hours drive away. He feels like he can't really participate (as an advisor) to a company that he can't easily reach." "He feels" is where I got emotion from.
  - nknight 14y ago
    Touch a piece of sandpaper, it "feels" rough. But there's no emotion. If you must, substitute "believes" for "feels" in this scenario and you'll probably understand better.
_pius 14y ago
Might he not have a similar quality of life and have access to some other great companies to invest in within an hour's drive and have less investment competition should he choose to move to, say, Louisiana? Or Mississippi? Or Tennessee? Or Texas? Why would someone in a position to make angel investments move to a random new city just to have less investor competition?