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...though sometimes they strangely don't all want to invest in a slick social deals pyramid or revenue-free chat app or whatever else is hot at the moment... Y
by jessedhillon 12y ago
...though sometimes they strangely don't all want to invest in a slick social deals pyramid or revenue-free chat app or whatever else is hot at the moment...
You can't argue with returns, and "slick" VC returns trump Smallville's every day of the week.
- wwweston 12y agoOne "smallville" startup I worked for turned about $2M in investment into a $60M sale. How'd Groupon's investors make out on their returns?
- lmm 12y agoAnecdote != data. Look at the overall stats.
- falcolas 12y agoSelf re-enforcing loop. The investors are in SF/NY because the startups are in SF/NY, because the investors are in SF/NY... There are plenty of VC funded startups which aren't in SF or NY, and they will have slower burn rates than those who are in SF and NY, simply due to the cost of living.
- lmm 12y agoThe investors are in SF/NY because they can make more money there. I agree that it's probably a network effect rather than anything fundamental about SF/NY. But really, so what? Yes, if all the startups were in Cleveland then it would be smart to go to Cleveland. But they're not.
- cylinder 12y agoI don't understand why people on here seem to believe startups are just a bunch of programmers in a room somewhere. They are a business, and sales is of utmost importance in business. You want to be as close as possible to your current and potential clients.