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I think Israel might be the example of how unplannable a startup hub is. It's far from the markets and on the wrong side of trade barriers most startups serve
by netcan 13y ago
I think Israel might be the example of how unplannable a startup hub is.
It's far from the markets and on the wrong side of trade barriers most startups serve (EU, NAFTA, etc). Other markets (including some pretty large countries) are completely inaccessible. Flying in and out is expensive and inconvenient. It's not a place people can arbitrarily migrate to so workforce is largely limited to locals. They speak a language and use a currency no one else does. It's not a financial hub, not even in the VC/startup niche. etc.
Then there is also the fact that the country is in a constant^ threat of existential war which means your employees are doing active reserve. Long term anxiety is real.
Of course there are the major positives that do make it work. I think that's an interesting point. Maybe the pluses get multiplied in a way that minuses don't in the case of startup hubs. That would imply that optimizing around the edges (eg living cost, CGT, typical "ease of business" measures) are not as important as complaints might suggest.
^By constant I mean that if you look at a 10-20 year horizon from any point in history, there is a substantial risk that conflict will affect your life as a citizen. Many Israelis hold foreign passport in case things go south.
- rdl 13y agoI think the single key element is "lots of smart people want to be there", with a secondary element of "lots of smart people are able to be there". Everything else is secondary, although capital is a serious accelerant. I wonder what other places have this trait. University cities where smart people leave after university don't meet it. Japan probably has the "lots of smart people want to be there" (the huge population of hacker type people worldwide who love Japanese culture), but either can't be there (due to a weird employment/immigration market), or the country itself is too difficult for a nexus of startupness to form. Singapore and Dubai are awesome, but most of the expats I know in both places have a "want to make money for a few years then go home" view of the places. SF, NYC, LA, Boulder seem like the most aspirational cities in the US. SLC for the Mormons. Maybe Portland?
- purringmeow 13y agoHehe, Israel is certainly a unique place. If you want to know how Israel became the technology capital it is today, I thoroughly recommend Start-up Nation: The Story of Israel's Economic Miracle
- reledi 13y agoI found a review of the book that gives more insight book, if anyone is curious: http://academics.aju.edu/Default.aspx?id=9798 http://academics.aju.edu/Default.aspx?id=9798