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People have been declaring that California is too expensive for startups for decades.
by bodyfour 13y ago
People have been declaring that California is too expensive for startups for decades.
- muzz 13y agoAgreed, and sadly the lack of that coming to fruition has not stopped them.
- qwerta 13y agoI actually blame California cost of living for stagnation of database industry. I know many smart people in SF and LA, who created great open-source projects as a hobby. After a few years this project matures, and it would be great time to turn hobby into business. But they have to keep working for large company, to support family. Some stuff (such as DBs) is just bellow VCs radar. I guess it is good for me. My startup is all about collecting abandoned ideas and adding nice wrapping.
- muzz 13y agoThat's essentially claiming that somehow market forces don't apply to the database industry.
- rpedela 13y agoI am one of those people who left the Bay Area because of the high cost of starting and maintaining a business there. I am now in Denver/Boulder area. The Bay Area is definitely one of the most expensive places to have a business which is especially tricky when you don't have revenue like most startups. For example, rent for housing has increased dramatically over the last 5 years to point where people with decent jobs need housing assistance. As a business, you need to raise salaries so your employees can keep their standard of living. And employee salaries are the largest expense for software companies. What I think keeps it going is the fact that a lot of rich people live there now and are willing to invest in companies. That investment allows the company to pay its bills while it is building its product. However even with investment, the money still goes quicker than if you were somewhere else. In essence, it looks like an angel investment bubble to me. The question is, will the bubble burst and when?