Comments on: Does Location Really Matter?

By: Brent

Brent — Sat, 21 Feb 2009 02:42:51 +0000

I agree that location is much less of a factor when it comes to starting a web startup. But growing it into a successful business requires a great team, access to amazing business advisors, access to partner companies, networking with other “connected” individuals, etc.

I believe there is a specific mindset on the west coast about “going big or going home.” People in the valley want to be the next Myspace, Facebook, Youtube and Ebay, and place much less emphasis on creating a sustainable business from the get go. I’ve never been to the east coast, so I am unsure if this attitude is as abundant.

By: Location Matters for Startups, Get Over It | KillerBlog

Location Matters for Startups, Get Over It | KillerBlog — Thu, 19 Feb 2009 12:12:46 +0000

[...] debate is as old as startups themselves: does location matter when setting up a company? The sad truth is this: it does [...]

By: We Dont Need to be Noisy to Create Noise

We Dont Need to be Noisy to Create Noise — Thu, 19 Feb 2009 06:45:37 +0000

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By: ChangeForge | Ken Stewart

ChangeForge | Ken Stewart — Wed, 18 Feb 2009 17:57:46 +0000

Rob, this is an interesting thought track to me. I have been rolling this around for some time in my head as I am based in South Carolina – not considered a major technology hub, but oddly enough has a very strong international presence located here between various industries. In proximity it is located almost dead-center between Atlanta and Charlotte, one a very big metropolitan area while the other is consider a banking hub.

Theoretically, technology should lessen the effect of location (what with telecommuting and globalization in full swing), but somehow certain pockets are well known for certain niches or verticals.

I would agree with Hutch in the grander scheme because often who you know is very important in business. In other words, having a relationship with the right person at the right level can mean the difference between a deal and no deal. Given this very human effect, location can be very important, and more so if a “clump” of those key people are co-located.

Warmest Regards,
Ken

By: robdiana

robdiana — Wed, 18 Feb 2009 16:54:58 +0000

Mukund – The culture may have a lot to do with it, mainly because if that is where the players were, others will gravitate towards it.

Hutch – First to market is an important position. It could be that Silicon Valley was first to market with many tech advancements ages ago, or the fact that Twitter was really the first microblog.

By: robdiana

robdiana — Wed, 18 Feb 2009 16:52:02 +0000

Ron,

The “critical mass” of talent would be there in many major cities due to the universities that exist. The “get” part is harder because some people just do not understand what developers are trying to do.

By: Hutch Carpenter

Hutch Carpenter — Wed, 18 Feb 2009 16:51:31 +0000

Rob – I think of it a little like Twitter. Anyone can start a service like Twitter, and others have tried. So why does Twitter get all the attention and growth? Network effects. New users go where the action is, and existing users’ engagement is increased by an existing hive of activity.

Silicon Valley got a head start via the hardware start-ups of the 1970s, and has only built on that network effect since then. Smart, experience workers are there. VC is there. Peers with whom you can work are there. These serve to reinforce the network effect benefits of the area.

BTW – glad to see you giving my alma mater UVa a shout-out here. Wahoowa!

By: Mukund Mohan

Mukund Mohan — Wed, 18 Feb 2009 16:47:32 +0000

You have probably heard this before, but one of the main reasons for the location is its very self contained and in the culture. That’s the same reason why Hollywood still is the movie hub and Detroit’s the (well it was anyway) the car hub.