Location? Location! Location.
This is not a post on location based services such as Foursquare, Gowalla or location platforms like SimpleGeo. I will leave that up to the experts.
Just want to make sure that you have a chance to bail out early. After all, we all have places to go check into.
The last four startups I have been involved with (including the two I helped found) have been in the state of Colorado. It seems that over the years, I have gone from being slightly ashamed of the fact that my startups werent in New York or the San Francisco Bay Area to being proud of where I currently hang my hat.
I have gotten to the point where the simple suggestion that location matters to the growth of a startup makes me bristle.
Thats right. Location has little to do with the success (or failure) of a startup.
1) What about access to capital?
Most venture firms will invest anywhere. Does that mean if you live in Billings, Montana building an amazing startup that a coastal VC will find you? If you are building interesting technology, and its visible (remember people dont check the physical location of a company prior to using their web services), investors will come knocking.
Do you just have to wait around for investment? Just like anyone, you need to spend time meeting with potential investors, regardless of their physical location. When raising money for Graphic.ly, I had meetings with firms and angels from Boston, LA, NY, SF, London, Boulder and Houston.
Build something interesting and people will be interested. Meet with interesting people and they will be interested.
2) What about access to potential clients and partners?
Living on the coasts definitely helps in this regard. You can run into a potential partner in a coffee shop, or quickly set up a dinner meeting. But, on the flip side, given the heavy workload that a startup piles on, you stop looking for deals that are hard. And sometimes, traveling across the country is hard.
Applying a global/domestic view of potential partnerships removes the benefit of location.
3) What about access to talent?
Good people live everywhere. Telecommuting works. Yes, its great to have an office full of rockstars, and rockstars work for rockstars. Doesnt matter where the gig is located.
4) What about work/life balance?
Ask someone else. My life is balanced squarely on the work side. By choice.
5) Cost of living?
Ramen costs the same everywhere.
6) Um…what about…um…yeah.
Exactly. Todays world removes location as a indicator of the potential success of a company. It heightens the requirement that the founders and employees are truly excellent. In fact, great people can overcome mediocre technology. Location has ceased to be important.
If you want to live in NYC, or Boulder, Austin or LA, do it because you want to. Do it because it puts you in the right frame of mind to be excellent.
Perhaps I can make it a bit more plain: run your fucking company. Stop worrying if you are missing out because you are in Boston or NYC or SF or Boulder.
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Ryan Graves
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Dave Baxter

