So the Funding is unlikely to relocate.I agree.
ultimately a lot of founders will take <$30k salary when starting a company and accept any hardship in order to succeed. So suggesting that corporate finances at startups are suffering because of high rent is also a shaky premise.
Most of those people have no other options. You don't want to fund people (in general; obviously there are outliers with 150+ IQs and fucked-up careers, I was one and, who knows, may be one in the future) who don't have other options. You want to fund people who could actually get the $250k hedge fund quant jobs. They'll come down to a savings-neutral (with no children) $125k, but not $30k. Not in the Valley.
The people who'll take $30k in the Valley are (a) rich kids with parental sources, and (b) the truly desperate. Founders are not an exception.
If anything, investors probably like high rents because it forces higher burn rates and hence encourages startups to generate revenue or flip quickly.
True, but the real reason VCs want to stay in one area (and keep their companies there) is that the collusion among VCs would be dangerous and possibly legally hazardous if it happened on paper instead of through a mouth-to-mouth social network.
I can't see there ever being a lack of demand for what SV produces. Businesses.
The whole country produces businesses: restaurants, cleaning companies, indie bookstores. Most HNers find those lines of work uninspiring-- and starting one of those is way riskier to one's tech career than working at Google. Oh, and those businesses tend to get crushed by big corporations (see: WalMart) and landlords and changing trends.
So, there's no lack of businesses being generated in the US. What there is a lack of is inspiring and truly innovative businesses, but SV is no longer producing inspiring companies, so what use is it?
I agree.
ultimately a lot of founders will take <$30k salary when starting a company and accept any hardship in order to succeed. So suggesting that corporate finances at startups are suffering because of high rent is also a shaky premise.
Most of those people have no other options. You don't want to fund people (in general; obviously there are outliers with 150+ IQs and fucked-up careers, I was one and, who knows, may be one in the future) who don't have other options. You want to fund people who could actually get the $250k hedge fund quant jobs. They'll come down to a savings-neutral (with no children) $125k, but not $30k. Not in the Valley.
The people who'll take $30k in the Valley are (a) rich kids with parental sources, and (b) the truly desperate. Founders are not an exception.
If anything, investors probably like high rents because it forces higher burn rates and hence encourages startups to generate revenue or flip quickly.
True, but the real reason VCs want to stay in one area (and keep their companies there) is that the collusion among VCs would be dangerous and possibly legally hazardous if it happened on paper instead of through a mouth-to-mouth social network.
I can't see there ever being a lack of demand for what SV produces. Businesses.
The whole country produces businesses: restaurants, cleaning companies, indie bookstores. Most HNers find those lines of work uninspiring-- and starting one of those is way riskier to one's tech career than working at Google. Oh, and those businesses tend to get crushed by big corporations (see: WalMart) and landlords and changing trends.
So, there's no lack of businesses being generated in the US. What there is a lack of is inspiring and truly innovative businesses, but SV is no longer producing inspiring companies, so what use is it?