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in Startups - 31 Dec, 2012
by Tech Journalist - no comments
Why startups move to Silicon Valley?

It might be a question too easy to answer at first sight, but when all factors taken in consideration, the answer might be not simple as originally thought!


As a European tech blog (covering European and world startups), we have often came across European start-ups that decide to move to the S.V., many local tech. investors did too,and  it is the same situation worldwide, even in the United states itself,entrepreneurs from the 49 states migrate to silicon valley to launch their projects.


This is why we decided to address this question to the silicon valley startups, hoping to have detailed opinions from those that have lived it first hand. Why you created your startup in sillicon valley ?


We will be updating this page with responses from the different startups that have taken this leap, but before we will list what we as European entrepreneurs find attractive in S.V. and what we find not so attractive.


What is attractive:
1- Angel investors and Venture Capitalists (VCs) are highly concentrated in this specific region, thus getting seed funding or round funding for a project or startup in the valley is easier, simply because you have many more investors than elsewhere so you do not waste your time going from one city to another, and due to high numbers you can pitch more investors than anywhere else on the planet, thus the probability to raise funds is much higher than elsewhere.

2- Creating useful connections, in the valley the majority are in the tech business, so whenever you are partying and having fun, you are still making useful connections that might be handy when launching your project or developing your startup.

3-Talent, with a lot of talent concentrated in the S.V. it is easy for big companies and startups alike to find the adequate and needed talent for any specific position.

4-Melting pot, geeks from all over the world have taken from this area a home for them, and for their ideas, but ideas evolve in the presence of other ideas leading to a wide range of creative ideas and companies.

Silicon Valley is formed from people that left their native cities and countries, to move to a place where they could do something new and grand. These people are smarter and more motivated than natives.

Silicon Valley’s had several waves of entrepreneurs migrations,  1st wave (in aerospace), 2nd in semiconductors  these first waves were due to government investment and high tech education. But waves kept coming from PCs and software, to the internet, to biotech, to mobile, to social computing …


What is unattractive:

1- Very expensive cost of living.

2- Every programer is a wannabe startup founder even if he/she lacks the business intelligence/ logic.

3- It’s difficult to get a company off the ground; why make it harder than it already is? by paying more for renting office space, for paying more salaries for employees.

4-Easier to get media attention in your own community, for smaller accomplishments then getting it in the Silicon Valley.

5- Entrepreneurs that fail, keep getting other chances what basically is absurd, someone who failed to assess the success rate of his/her startup more than once, should not be encouraged to keep wasting money.


please tweet us your reply or link to your blog with opinion: @techfactorg

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