All tech startups need just a few ingredients to germinate: sophisticated money; first-rate technology universities; and a few template successes (a Google or a Facebook, and so on) to encourage founders to get off their duffs. Contrary to current wisdom, these ingredients exist in many communities outside of Silicon Valley –- in fact, they always have. Continue Reading.

All tech startups need just a few ingredients to germinate: sophisticated money; first-rate technology universities; and a few template successes (a Google or a Facebook, and so on) to encourage founders to get off their duffs. Contrary to current wisdom, these ingredients exist in many communities outside of Silicon Valley –- in fact, they always have.

When you add a large and economically accessible employee base to our first three criteria, you have the recipe for successful startups. Tel Aviv is a good non-U.S. example. Israel has more PhD’s per capita than any place on Earth, plus a military that turns out gobs of advanced technology. The result: There are now more VC’s in Israel than there are rabbis.

Similarly, after World War II, oil companies in Texas needed to find new sources of petroleum, and they turned to geological survey companies for help. One of them had a little subsidiary, Texas Instruments, where the computer on the chip was eventually built. Some years later, Michael Dell arrived at a much-enhanced engineering school on the campus of the University of Texas, and the rest, as they say, is history.

I am what you might call a startup gray-beard and I’ve seen it all. Founders can sometimes get too fixed to the idea that they must be in a certain incubating environment to succeed, when really, getting out of the startup fishbowl is sometimes the best thing they could do. I often encourage startups I invest in or founders I counsel to be contrarian and start their firms outside of the Valley, or failing that, to move East while they still can.

If you want to stay stateside, I’m partial to Boston, my home town, but there are plenty of other cities to consider, too. My top non-Silicon Valley cities are: Boston; Pittsburgh; Philadelphia; Austin; Research Triangle, N.C.; Minneapolis; Tallahassee; Toronto; and Basking Ridge, N.J. Here’s why:

1. The weather sucks in some of these towns (not Tallahassee) so your people will actually work instead of bugging out at 5:15 to train for a marathon, triathlon or Ultimate Frisbee.

2. You can recruit better outside the fishbowl. Every technology company hits the wall — some multiple times. In the Valley your employees will bail at the first sign of trouble and jump to a better job in the next parking lot. That means you will have to spike salaries to rebuild your team. Other places in the world aren’t quite so spoiled – or they come to you already cynical and stay through the rough times.

3. You won’t get lost in the startup maze. In the Valley, every VC has a portfolio company in each flavor – their own LP’s can’t tell them apart.

4. In my experience, other startup communities aren’t as pre-occupied with the “exit” as Da Valley. SV VC’s have attention spans measured in picoseconds and will sell/merge your company at the first sign of trouble. I can say that in Boston, at least, we are used to gutting out long “winters.”

5. Academics make great board members. Each of these cities has a rich educational environment and are great places to recruit sartorial advisors. And unlike at Stanford, you wont have to give up 1 percent of your equity just to put the provost’s name on your board!

Howard Anderson is a founder of The Yankee Group, a cofounder of Battery Ventures, and a professor of business at the MIT Sloan School of Management.

  1. Tallahassee? Look at St. Louis – especially if you are working on a Biotech/Life Science startup.

  2. That comment about marathon training is totally inappropriate and not fair.

  3. What are your thoughts on NYC? We started here a few years ago and it’s always interesting to meet people visiting from SV.

  4. We’re doing it in Portland Maine for our mobile company.

    Close to Boston (2 hours). 40 minute flight to NYC on JetBlue.

    Cheap terrific space in the Old Port. Workers are cheaper.

  5. [...] at GigaOM today, Howard Anderson gives us 5 reasons to move a startup out of Silicon Valley and names Toronto as one of his non-Silicon Valley [...]

  6. Also, in those second/third-tier areas, your employees won’t find anyone to have sex with, leaving them more focused on their jobs.

  7. Toronto…yes, but a better place is Waterloo Ontario, just west of Toronto and home to 2 Universities, RIM, OpenText and many more tech companies.

  8. Austin (aka the “Silicon Hills” as it was referred to in its glory days) is quickly becoming a hot bed of mobile and semantic technologies. Our Ruby on Rails community is also really strong.

    Some cool stuff’s happening around here. You should come check us out sometime (and not just in March during SXSW!).

  9. Uh, Paul, if your company has mostly straight men, Silicon Valley is the best then: there are a lot more single men than women, which is the opposite of most large metro areas (e.g. New York City).

  10. We’re loving Toronto as the home for our startup. Nearby Waterloo is a hot spot for successful tech companies like RIM, and a rich source of talent, while TO is a world-class city with enormous diversity- the world represented in one place, so to say.

    And contrary to popular belief, we do get to go out and shoot the frisbee around every now and then, just maybe not in January!

  11. [...] Howard Anderson wrote a great post today, about why companies should consider moving their tech start ups out of Silicon Valley.   I think two of is five reasons to move out are also  good reasons for them to move here! 1. The weather sucks so your people will actually work instead of bugging out at 5:15 to train for a marathon, triathlon or Ultimate Frisbee.  ( Ok, so our weather doesn’t suck all the time) [...]

  12. Complete Baloney! I used to work for a startup in Boston. It was a prison in there. The VCs there totally suck. They are mostly old men who dont have a clue as to whats happening in the real world and would rather retire. They had hardly anything to add to the company other than money. There are so few startups in Boston and a total lack of mobility and choice in employment. The VCs know this and use all kind of pathetic tricks in the bag to prevent the employees from leaving. As a result there is no passion among employees either. Contrast this to the vibrant scene in Silicon Valley. I would rather be a non-descript entrepreneur in the Valley than one of the few entrepreneurs in Boston, because Boston is a backwater in every sense. As for all the other “wannabe” places promoted by other commenters here, all I could say is “you guys are missing something!”.

  13. Yo Mark, I did 15 years in SiliValley, mostly in start ups. The valley is great early in your career to learn stuff. Once you know what you’re doing you’re better off being away from the echo chamber, near real users and focusing on them, not the circle jerk that is the valley.

  14. Yo Mark, wish you good and cheap luck to you in Portland, Maine, ha ha. With cheap workers and cheap office space you can do some cheap products and sell them in some cheap markets. You are right, Silicon Valley is not exactly the place for being cheap.

  15. This comes across as a (totally lame) attempt to persuade people not to leave Boston.

    I mean the reasons aren’t even valid – ‘you can recruit better’? Well not if there aren’t any people in the area who’ve got experience is ‘topic x’.

    And I don’t know if the weather comment is meant to be funny, but it is flat wrong. You want people to be able to enjoy themselves in the limited time they do get off.

    Boston has a lot more fulsome start-up ecosystem than most other spots on Howard’s list, but Silicon Valley is the cat’s meow. The complete package of ideas, talent, money, etc.

    Of course there are exceptions to every rule and if there’s a compelling reason to be somewhere else – specific niche ecosystem or whatever – then that’s where you should be. But if you have latitude of choice, SV has got to be at the top of the list.

  16. I agree with the article’s premise but disagree with the correlation between weather and employee commitment. Having heard this in the past you are short changing your company if you are worried about people taking off at 5:15. You probably hired the wrong people. As a marathoner, I can vouch for working through some nasty problems during my weekend long runs. This often led to heading to the office before I lost the valuable solution. Invariably you think about work to take your mind off the other pain.

  17. I’m surprised you didn’t include Chicago in your list. Why?

  18. The startup and tech scene has grown substantially in Atlanta (HOTlanta to out-of-towners) in the last year.. I’d definitely put it on a list of cities to consider.

  19. We’re working hard in Dallas – Fort Worth to build our startup community. There are some great companies here and the community is growing like crazy!

    Check out http://www.fortworthstartups.com and http://www.texasstartupblog.com !!

  20. Reason #1 seems wrong on every level. I’m never more productive than when I’m training for an event. Except for an electrical storm once, I’ve never avoided marathon training outside because of weather (or even daylight). Mornings are usually the best time to run, anyway, because it’s cooler and marathons always start early in the morning.

    What better way to identify people with drive than by looking for those who are willing to put in hours of hard work every week for something that only they care about? Give me a marathoner over a blogger any day of the week.

  21. Tony, you’re probably right, but with Stanford right around the corner…

    Where would I put the company if I only wanted to hire hot women and dress them in lame (that’s ‘la-may’, but perhaps not) jumpsuits?

  22. Hey.. you don’t mention Seattle somehow.. with lots of tech talent, and good CS school, this place is already buzzing with start-ups..

  23. For reason #2 is seems that you have confused recruitment with retention and failed to even make the point you were aiming for. In the valley people know that startups come and go, so the large number of available jobs makes it easier to stick with a company until it really does fold (i.e. you know that within 48 hours you can have two or three interviews lined up with prospective employers) while in areas where tech jobs are scarce you are going to find you best talent poached by other companies or shopping their resumes around at the first whiff of trouble.

  24. This is BS, Howard’s idea to attract new business to Boston

    I agree with Mark’s comments on Boston VCs.

    I have started two hi-tech companies in Boston, one had a successful exit for 03 and another one did not get any funding. I have lived over 20 years in Boston. Yes, it was the place to be in the 80s and 90s but not in the new millenium, specially if it’s a hardware, fabless semi or software.

    There are basically no jobs in the Boston areas, because there are no start-ups in Boston. There are no start-ups because no VC want to invest in any company unless they are pre-aasured that you will have a good exit or a gazillion users/customers ala facebook. So all the good engineers are leaving, or changing careers. Life sciences start-up do not want to pay engineers salries in the 100k+.

    Only lawyers and MDs will be left in Boston, in any case these are the people who can afford to pay Boston’s real-estate prices.

    There are two good locations for a start-up: SV and Tel-Aviv. That’s where I have been for the past 12 weeks, thinking about either joining an Israeli start-up or starting my own.

  25. +1 seattle

  26. One more comment why Tel-Aviv is so much better than Boston.

    Howard should ask Scott Tobin, a partner at Battery Ventures why did he just leave Boston and moved with his family to Israel where he will be working.

    Basically, because there are no more deals to be made in Boston.

  27. [...] business Piece from Yankee Group on GigaOm dealing with reasons why startups could be situated elsewhere than Silicon Valley: 1. The weather sucks in some of these towns (not Tallahassee) so your people will actually work [...]

  28. [...] If you want to stay stateside, I’m partial to Boston, my home town, but there are plenty of other cities to consider, too. My top non-Silicon Valley cities are: Boston; Pittsburgh; Philadelphia; Austin; Research Triangle Park, N.C.; Minneapolis; Tallahassee; Toronto; and Basking Ridge, N.J.” – Howard Anderson [...]

  29. In 15 years you will see Buffalo, NY on the list.

    – a dozen college and universities in the area
    – cheap skilled labor, space, utilities
    – a growing number of technology starts
    – 8 months of inside weather (well, from those not here)
    – a lot of old money starting to create new money

  30. I love posts like this (i.e., the grass is always greener). I absolutely agree that you don’t need to be in the Bay Area to start a technology company…but not everyone does; you just hear about them all the time because of this site and TechCrunch. Here in Houston (not on the radar screen apparently but I’m also happy to keep the bottom feeders out), we have technology startups of all flavors: nanotech (the birthplace of nanoscale sciences), biotech/life sciences (home to the world’s largest medical center), energy and clean tech (Houston IS the energy capital of the world), IT/Web 2.0 and NASA inspired spin-offs (JSC is a major complex). Granted that finding product marketing talent for web or mobile applications is challenging, but not an insurmountable obstacle for competent entrepreneurs.

    Too much weight is put on where you get started. Talent is ubiquitous and not the sole byproduct of template success stories. Capital is distributed and will seek good deals in all corners of the Earth. And ideas are the domain of the mind which has few boundaries.

    If you hate the weather, indigent population or hyper-competitive environment then you should leave for (sidebar: I just noticed the smiley face on the bottom of this page…nice touch) somewhere new. But don’t expect it to be a problem free place. If you want to be succeed, you need to accept challenges and overcome them; success requires it. As Dr. Seuss wrote in his wonderful book I Had Trouble in Getting to Solla Sollew:

    “I learned there are troubles of more than one kind.
    Some come from ahead and some come from behind…
    But I’ve bought a big bat. I’m all ready, you see.
    Now my troubles are going to have troubles with me!”

  31. ++Research Triangle Park, N.C.

  32. what crap? I have been both in Boston and SV. There is no place like SV on the planet. The definition of whats ¨cool¨ in the valley is far far more interesting than the waspy 16th century definition of boston area startups.No wonder facebook had to move from there to SV to actually realise its potential. Route 128 was dead when DEC,Data General and other folded up in later 80s.

    Stanford is far more practical than MIT in CS and UC Berkeley is far more theorectical than Harvard. Forget this rant. Why bother when truth doesnt depend on number of believers.

  33. *Tel Aviv – Not really sure I want to set up shop on the gaza strip.
    *Houston – Mosquito’s the size of birds + sick ass humidity
    *Boston – Great schools. Weather SUCKS!
    *Philadelphia – Eagles, Flyers and 76ers stink!
    *Austin – good school. young town & hot chicks. This is a possibility
    *Research Park – hmmm, need to chew Copenhagen Tobacco to be accepted in the state. No thx
    *Minneapolis – minus 30 degrees. No thanks
    *Toronto – taxes suck! very humid
    *Basking Ridge – maybe if you are a biotech. weather sucks
    *Tallahassee – never thought of this one. Hot chicks though

    Interesting post. Perhaps a better debate is which city to choose in the bay area for your start up!
    1) Mountain View
    2) San Jose
    3) Cupertino
    4) San Mateo
    5) Salesforce
    6) Pleasanton
    7) Walnut Creek
    8) Marin
    9) Fremont
    10) Emeryville
    11) Menlo Park
    12) Palo Alto
    13) Berkeley

    Best place on earth is the bay area. Which city will have the next $1B start-up

  34. 1. The weather sucks…

    Why is it that everyone in California sites weather as the primary driving force in their lives, and how is is **SO** much better than anywhere east? I live in and near the Adirondack Mountains in upstate NY. We have four very distinct seasons, along with heavy snow all winter – and I love every second if it.

    I lived in the valley for 3+ years and could not wait to get out. Six months a year of stay-in-the A/C weather combined with 11 months of brown, almost treeless hills, unbearable traffic, and a total lack of deep culture, had me yearning for the crappiest January day back here……

  35. I would add Ann Arbor to that list

  36. Q: Why do people rob banks?

    A: Because that’s where the money is.

    (in the case of tech startups, it’s also where the people are)

    you can do a great startup anywhere, and outside the US it might be a different story, but still — most startups are started in Silicon Valley / San Francisco, probably because this is mecca for both VCs & Geeks. at least in the US, ~1/3 of all startup capital goes to Northern California.

    lastly, Paul Graham has 2 excellent essays on this subject:

    ’nuff said.

  37. Interesting that you included Toronto. I’ve started a companies in Toronto, as well as Cambridge (which we recently relocated to Mountain View). I think Toronto suffers from a lack of capital appropriate for web start-ups, and I’m sure many others on your list do too. There’s a huge gap between conception and Series A that needs to be addressed before the places on your list will be taken seriously. Sorry, but I still think the advantages of being located in the valley easily outweigh the disadvantages.

  38. [...] Read the rest of this post Print all_things_di220:http://voices.allthingsd.com/20080911/anderson-4/ SHARETHIS.addEntry({ title: “5 Reasons to Move Your Startup Out of Silicon Valley”, url: “http://voices.allthingsd.com/20080911/anderson-4/” }); Sphere Comment Tagged: Howard Anderson, The Yankee Group, VC, Voices, startup, venture capital | permalink [...]

  39. Don’t agree with your criteria laid out in first two paras. I think you need two main things: a good IDEA and a good TEAM. Rest all falls in place.

  40. What about Boulder, CO?

  41. Here’s yer hat, there’s the door. Don’t let it smack you on the ass on your way out.

  42. [...] The future of searchDeb Perelman: Whoops! Apparently, we haven’t mastered email yet. GigaOm: 5 Reasons to Move Your Startup Out of Silicon Valley Phil Wainewright: Cloud rising Joe Brockmeier: Picking the Fleas from Community TechRepublic: [...]

  43. I have to give my friend Josh Tabin, the co-founder of http://www.startuphouston.com credit for beating me to the punch to tout Houston as a great place to build a startup. Houston has tons of talent, top schools like Rice, Baylor, U of H, and St. Thomas, a deep pool of Angel money, a culture of entrepreneurship, and a vibrant startup community with lots of BarCamps, Coworking and Tech Happy Hours. One thing that a lot of people tend overlook is the fact that Houston has customers who love buying local – that’s true for consumer facing deals as well as enterprise-level transactions. I love Austin for it’s laid back lifestyle, but Houston is probably the best city in the world to actually ‘get things done’. I’m clearly biased, but I’d take two seasons (Hot & February) over snow tires and shoveling sidewalks any day of the week.

  44. [...] universities are not gaining much experience as it applies to technology. In an article yesterday, Howard Anderson highlighted some of the primary factors that help germinate successful tech startups: “sophisticated [...]

  45. Reason #6 Homes and office space are considerably cheaper in Austin’s “Start Up” district:


  46. Add to be talking about this today… I’m a software engineer thats relocating to Silicon Valley after living here in Boston and working for a start up. Salaries are definetly much better there, and I hear the quality of life is better.

    … I’ll tell you in 6 months if it was a good move.

  47. Great, but I would like to add Washington, DC as a top place outside of the valley as well. We are surrounded with a sophisticated hard-working elite.

  48. silicon valley is the best and will continue to be in the near future too… it’s not 1 or 2 things needed to make a startup get going & make it success. it’s 100 different things needed to get a startup going & make it success. all those necessary ingredients are available with in 25mile drive.

  49. [...] Reasons to Move Your Startup Out of Silicon Valley 5 Reasons to Move Your Startup Out of Silicon Valley: [...]

  50. How about Midland, Texas??? This is where we started Cocktail Match. I’m probably the only tech start-up guy here but entrepreneurship from Oil wildcatters runs deep. As we grow, Austin will most likely be our best fit but these days you can start from just about anywhere.

  51. I’ve been trying to figure out if longer term I want to move my company to SV from Toronto. Forbes rates Toronto as #1 in world for both personal and business life. Boston does seem like a great place to do business and the sports teams are pretty decent as well. Thanks for your opinions Howard.

  52. [...] Howard Anderson, a venture capitalist at Battery Ventures and a professor at MIT, has an interesting post on GigaOM about 5 Reasons To Move Your Startup Out of Silicon Valley. [...]

  53. Silicon Valley is expensive and getting to VCs is harder than most places, but my experience with the Austin and Boston groups is the former want nothing to do with anything outside of their circle and the latter will shut down a company in a heartbeat as soon as they get bored. Silicon Valley VCs, once you get in with them, are generally the most loyal, the most helpful and the best funded.

  54. what do you get when you add 3 measures of money, one measure of technology, and again, two measures of money? You get SV. Having lived here for 7 yrs, I have to say, this is hardly a techy place. SV is the playground for VCs… And the entrepreneurs are toys in their hands, well, mostly…

    BTW, Howard is not trying to attract businesses to Boston. He has accomplished enough, and does not need that cash. He has mentioned other cities. Read the post again…

    With the economy going downhill, getting out of Silicon Valley might be a good idea…The real-estate bubble here sucks anyway, check my articles below:


  55. Is this guy serious? Here is my assessment of Boston for a guy from that city:

    1 Boston weather SUCKS, winter is long and cold followed by two beautiful weeks of spring followed by three months of hot sticky, gross summer, followed by three weeks of beautiful fall, and then winter starts again.

    2 Boston is for drinkers. What is there to do in Boston other then, uh, drink? Ya know why so many people drink in Boston? Because the winter is so freekin long and cold!

    3 Boston drivers suck. Boston has consistently ranked in the top five, and is currently third among cities with the worst road-rage problem, even Bostonians have a sense of humor about this: http://www.boston-online.com/bosdrivers.html

    4 Harvard isn’t Stanford. MIT isn’t Stanford. Nothing is like Cal anywhere in the entire world… Sorry guys, but Harvard and MIT have not yet spawned talented founders AND major early contributors at companies like Cisco, Sun, Netscape, Palm, Google, Yahoo and countless others…

    5 Lifestyle in the Bay Area is like no other. We can be out doors most of the year and exercise. We tend to eat healthier then you meat (flesh) eaters in Boston because we have the largest farm economy in the U.S. and we get fresh fruit and veggies year-round and pay less for higher quality produce then you do. We also have a lower gas and electric bill then you do, what with all that heating and air-conditioning (due to your sucky weather).

    Even Robert Swanson, a biochemist at UCSF, who co-founded Genentech, was smart enough to leave Boston where he earned his BS in Chem from MIT and his MS in Management from the Sloan School. Did he start what would become the a company considered “the founder of the biotechnology industry” in Boston? That would be a NO. He probably preferred the weather, lifestyle and drivers in the Bay Area.

    Don’t get me wrong, I have nothing against Boston as a city or as a place to live. Boston has its own unique wonderful attraction and it is a fantastic place for a young person to attend university. But Boston is no substitute for Silicon Valley and no company could convince me that living there is equal to or better then living here. And I do not believe for one minute that the talent pool in Boston, or anywhere else in the world, is equal to that of Silicon Valley. People are drawn to this place from all over the world because it is a true meritocracy and there is no other place like it. Silicon Valley cannot be duplicated in Boston or anywhere else in the same way that Paris or Rome cannot be duplicated in Las Vegas.

  56. I agree especially with reason number 1! Though the weather does tend to be pretty average in Philly, we get our good days… but definitely a lot of what you said are true. Good eye!

  57. [...] your weekend enjoyment, are some highlights from my recent reading, for you. On Starting Up… http://gigaom.com/2008/09/10/5-reasons-to-move-your-startup-out-of-silicon-valley/ An 5 arguments for NOT locating your startup in Silicon [...]

  58. Completely agree with 1,2 & 5.
    There is no charm in setting up something new in Silly Valley.

  59. My top choices

    San Francisco
    San Diego
    Newport Beach

  60. cant believe it took all the way until “snyggast” to see San Diego… good keep that a secret for us who know the weather, brains, infrastructure, money is here and if you need to be in SV its easy commute..

  61. Anna Lee Saxenian’s book “Culture and competition in Silicon Valley and Route 128″

  62. What’s interesting to note about startups in Tel Aviv is that they tend to move to SV or the Boston area once they reach a certain size/level of success. The market in Israel is too small.

  63. One major problem with startups in the Boston area is that non-compete agreements are enforceable.

  64. Everyone has been telling me how awesome Austin, Texas is these days…

  65. I couldn’t agree more, We started in Fairfield IA (next time you are passing through Fairfield IA, please stop in for Chai or corn on the cob!) . In two years we have launched 4 websites and raised over $5 million in financing. We have a highly talented and very diversified workforce with very little turn over. Probably the only real negative here has been a lack of appreciation for equity incentives- we are one of the few firms here to offer stock options.

    You can’t beat Silicon Valley for somethings- access to capital- both intellectual and monetary, but here in Silicorn Valley, as they call it, you can get a lot more bang for your buck and keep your best people even when you the inevitable hit bumps in the road.

    Mark Deuitch
    JACI Group Inc.

  66. snyggast has it right. Anderson is clueless when it comes to the West Coast. Even if you think SV is pathological in terms of labor turnover or costs, there’s no way you get the entrepreneurial spirit of the West (or even Austin) in Boston or NJ, even if the talent is as good. Trying and failing is normal out here, as Saxenian noted it is not in the establishment East.

  67. Toronto, yes, absolutely! It’s the third largest ICT cluster in North America, and it’s growing every day.

    It also has a wealth of homegrown talent thanks to three universities and a large population of talented new Canadians.

    Plus, yes, six months of bad weather will keep people at their desks-unless it’s there’s a Leafs playoff game, in which case all bets are off.

    If you’re looking to move operations, Toronto is truly the way to go.

    Christie Adams

  68. Watch this video of Ron Conway & Mike Maples:


    Very persuasive, but right now we remain loyal to the UK, and believe enough in our concept and country to launch here first, as that we hit a deepening credit crisis.

    Don’t forget Manchester, London & Leamington Spa. 2 big cities and one small town in England (UK) that we hope gets placed on the startup map. With some of the best universities in the world, and a global economy, success should not be so constrained by location. Come on England.

  69. [...] Ну і на десерт, цікаві думки Говарда Андерсона про “5 причин, чому стартап не треба розвивати в Силіконовх [...]

  70. [...] Anderson, co-founder of Battery Ventures, makes a great case against having your startup in Silicon Valley. Its an old article, but its still very [...]

  71. [...] is recommending that startups located in the Valley should leave.  In a post titled, “5 Reasons to Move Your Startup Out of Silicon Valley” he explains why anywhere by Silicon Valley might be a good move.  Here are his top five [...]

  72. Our startup is in Gainesville, and the main reason we’re about to weather this economic storm is because we have low costs, and don’t have huge West Coast investors breathing down our shoulders.

  73. Bootstrap in Boston Wednesday, September 2, 2009

    I love Boston, but I have to agree with (almost) all of the comments, and disagree with Mr. Andersen. After going through the VC mill here and seeing others do the same, it is painfully apparent that if you cannot bootstrap your business, or have another side business that provides cash flow to fund, you are best off leaving Boston. VC’s here expect early stage equity without risk. This is a great place to get educated, but if you have a good idea and expect VC funding, go west young man/woman. Don’t even hesitate. Maybe Boulder or another town, but leave the bean counters in Boston. Rather than attempt to shade folks’ eyes to support the local start-up economy, people like Mr Andersen can best achieve this good goal by applying their reputation to addressing the real problems embedded in the local VC / angel / regulatory scene. Doing otherwise just encourages more brain drain. Sorry to see the good ventures leave! ;_-( , we need the jobs.

  74. [...] All huge companies with extremely large exits. Here are some other reasons. [...]

  75. [...] can read the article on GigaOm. There are five great reasons to move, to quote Mr. Anderson: 1. The weather sucks in some of these [...]

  76. [...] arguing all these points I will say that I don’t think Atlanta is perfect.  But then, no city or community is perfect.  Sure there are things we need to be better about but convicting [...]


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