Start-Up Location Reality

March 15, 2009

Is the Valley Too Expensive for Normal People to Launch Startups?

Great article (posted on twitter by Guy Kawisaki) and goes to the point about start-ups and the cost vs infrastructure offered in different places.

I have been told at various time when looking at start-up clients (usually by Angle type investors) that the only places to do venture backed start-ups is Seattle, CA, Boston and NYC (with a few other smaller markets).

The reasoning goes something like this –

There is no talent pool in the midwest so if you are successful you will not be able to attract talent!

People do not want to invest outside their comfort zone and location location location is part of the comfort zone.

The infrastructure for investing and management are clustered around places where there is a history of successful start-ups – usually around great collages.

Would love to see some real data on this?  Please post if you know if any.