When I was in Boston, this was always a popular question at the VC panels.
Innocent student trying to impress – “To start a successful startup, do I need to go to Silicon Valley, or should I stay in Boston?”
Defensive Boston VC – “You should definitely stay in Boston. Many great companies are started here. For example: (list of network infrastructure companies started in the 90′s)”
Semi-cocky Silicon Valley VC – “This is the only place to start a startup. I would never invest in a company that was more than a 5 minute walk from my office. Facebook left Boston to come here (don’t you want to be like Facebook?).”
In NY, it’s the same discussion all over again.
- It starts when a few startups in New York get funded. Someone in the press sees it as a trend and proclaims that New York is the best place to start a company.
- VC’s, bloggers and other entrepreneurs in New York weigh in on the subject. (Silicon Valley doesn’t even notice. Not in a bad way – just a completely oblivious kind of way.)
- A few months later, someone in NY startup is very frustrated that they can’t get funding/cofounder/employee for their startup. Blames the banks for paying software developers so well, or a lack of successful entrepreneurs as role models, or claim that the cost of living is too high.
- New headline: New York is the worst place to start a company.
- VC’s, bloggers and other entrepreneurs in New York weigh in on the subject. (Silicon Valley doesn’t even notice. Not in a bad way – just a completely oblivious kind of way.)
- A few months later, more startups in New York are successful… repeat.
This debate is pointless and confusing. I understand it’s possible that one location or the other has advantages, but your company’s fate is probably more influenced by the specifics of the people on your team (or other very specific factors) than your zip code.
There are more VC’s in Silicon Valley (but there are more deals for them to consider). There are more engineers that work for stock options (but there are more startups way hotter than yours trying to hire them).
I know plenty of entrepreneurs that have failed in Silicon Valley. I know plenty of dreamers in the bay area that have never even gotten their businesses off the ground. I know people like that in NY too.
Don’t get caught up in this debate. Work hard at understanding your market/customer problem/product. Live where you want to live. I choose New York.
Tagged: NYC, Silicon Valley