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.

Popularity: 3% [?]

Share and Enjoy:
  • Suggest to Techmeme via Twitter
  • RSS
  • Twitter
  • FriendFeed
  • Digg
  • StumbleUpon
  • Yahoo! Buzz
  • Reddit
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • email
  • Ping.fm
  • Dude- While I love the passion, I have to disagree pretty strongly with a few points.

    Location definitely matters when it comes to hiring top talent. Yes rockstars work for rockstars, but rockstars also work for rockstar ideas led by unproven but highly inspiring people (rockstars in training). And it's significantly easier to inspire, lead, and rock in person than over skype/chat/phone/chatroulette.

    Ramen does cost the same everywhere, but turns out the same apt in Chicago (where I currently reside) is about 50% of the cost of that same apt in NY, and 65% of the cost in SF (guesses). There are significant cost differences.

    Also, location builds or strongly contributes to the attitude, persona, & culture. Very important things in the building of a company.

    Lastly, I whole heartedly agree with this point, and it's genius: "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...un your fucking companyun your fucking company."
  • Amen, bruddah. I'm only in LA because the gf graduated film school, and, well, where else do you go after graduating film school? Or such was the logic. One year after we moved here a producer actually did call her up and now their busy making her student thesis film a full-length project...and this producer called from New York. Go figure. It's still one of the "coastals", but not the one you'd expect.

    Then for myself, here I am in LA, and where does the big offer to help kick-start a start-up come from? From some dipstick in Spain, of all places! (you know who I'm talking about :P) A guy I'd never even met in person! (and still haven't!!!).

    Talk about location ceasing to be important... That's a damn good thing, though.

    --Dave B.
blog comments powered by Disqus