Ask HN: Do the benefits of the Valley outweigh the costs?
This might seem like a no-brainer for those of you who live in Silicon Valley, but coming from way, way outside the Valley (as in Melbourne, Australia) I would love to hear your views on whether the benefits of building a startup in the Valley outweigh the high costs of living there. I have some idea of the advantages. Here are three that come to mind: access to venture capital, networking and jobs (i.e. if my company failed in the Valley I could probably get an equivalent executive role with a technology company, whereas such opportunities are thin on the ground in Australia, let alone Melbourne.) Or am I wearing a pair of rose colored glasses?
11 comments
"if my company failed in the Valley I could probably get an equivalent executive role with a technology company" --
This statement seems a bit weird and naive (or wishful thinking). Do you really think people are going to give you executive positions and that just there are no talent around in here that is even more proven than you?
Hint: You are more likely to become to become an executive if you have a previous good track, and having one insignificant failure on your belt, is not.
Come in the valley: 1. if you want to seriously start anything that is very technically challenging. The top talent of the world is here.
2. If you want to join an existing company and learn a lot. Then you can move in your country an open whatever you want there.
3. Scale up. If you have a decent idea, a working product, and some good traction, but you need to scale up (more funding, people to work on it, etc).
Hint: You are more likely to become to become an executive if you have a previous good track, and having one insignificant failure on your belt, is not.
Come in the valley: 1. if you want to seriously start anything that is very technically challenging. The top talent of the world is here.
2. If you want to join an existing company and learn a lot. Then you can move in your country an open whatever you want there.
3. Scale up. If you have a decent idea, a working product, and some good traction, but you need to scale up (more funding, people to work on it, etc).
Another "cost" of living in the Valley, of which I am curious, is the fact that you're in an echo chamber. There are things which would only work in the Bay Area (just as there are things that only work in NYC or LA), which can't scale down to the mass consumer market (if that's your interest).
I am currently very actively wondering if the access to all those smart people is worth risking the potential loss of perspective. (I wouldn't have to try and build a design community out there, I could just work and network.)
I am currently very actively wondering if the access to all those smart people is worth risking the potential loss of perspective. (I wouldn't have to try and build a design community out there, I could just work and network.)
don't ignore the social stuff. If you feel like an outcast nerd elsewhere, moving here to feel like a real person might be worth it by itself.
Another thing to consider is that (technical) standards are higher here. Be prepared for a 'big pond' experience. Yeah, salaries are higher here, but so are expectations. If you were always the best person in the office elsewhere, it might be something of a shock to come here and find yourself closer to average. But that can be a good experience, too.
Of course, you are talking about executive roles, so probably none of this applies to you.
Another thing to consider is that (technical) standards are higher here. Be prepared for a 'big pond' experience. Yeah, salaries are higher here, but so are expectations. If you were always the best person in the office elsewhere, it might be something of a shock to come here and find yourself closer to average. But that can be a good experience, too.
Of course, you are talking about executive roles, so probably none of this applies to you.
The energy here is just different, it's infectious. You cannot put a price on it.
It's not surprising to hear somebody in a cafe working on their pitch or sometimes actually pitching to an investor.
For me, it's like watching a football game in the stadium as opposed to watching on TV.
After being a spectator, it motivates you to someday play the game too!
It's not surprising to hear somebody in a cafe working on their pitch or sometimes actually pitching to an investor.
For me, it's like watching a football game in the stadium as opposed to watching on TV.
After being a spectator, it motivates you to someday play the game too!
There's an elephant in the room here: do you have a legal way of emigrating to the USA? It's not a very easy country for foreigners to get into (or, at least, to work in) nowadays.
Spot on. As much as we'd like to move to the U.S. the biggest barrier is that small matter of a green card! We actually love Australia, and Melbourne is a wonderful city, but we do face certain disadvantages building a startup from here. We're still doing it of course and, interestingly, in our particular niche (tools for domain name investors) Melbourne actually has a few global players (e.g. Trellian, Flippa). Down the track I see us having some kind of U.S. presence. There's always a way...
if my company failed in the Valley I could probably get an equivalent executive role with a technology company
I don't live in Silicon Valley, but I would imagine that while there are lots of these more of these opportunities floating around, there is a lot of competition for them too. That said, if you want to be a movie star, go to Hollywood. If you want to be in musicals, go to New York. Country singer, Nashville. The same logic goes for startup founders and Silicon Valley. There are bound to be more resources and like-minded people there than most other places, and that's where the venture capital lives, too.
I don't live in Silicon Valley, but I would imagine that while there are lots of these more of these opportunities floating around, there is a lot of competition for them too. That said, if you want to be a movie star, go to Hollywood. If you want to be in musicals, go to New York. Country singer, Nashville. The same logic goes for startup founders and Silicon Valley. There are bound to be more resources and like-minded people there than most other places, and that's where the venture capital lives, too.
Hi Anna, like you I am thinking about/planing to move to San Fransisco and the bay area, I am doing it for a slightly different reason ( I am active in a area within roboitics called Self-reconfiguring modular robotics) but I found this post full of useful information, http://startups.ryanjunee.com/an-introduction-to-silicon-val...
FEBlog, I'm very much interested in robotics. Infact I code just hoping to learn robotics someday and that my programming skill can come in handy for it.
I just saw your profile, says you 'document' your experiences. You have a blog?
I just saw your profile, says you 'document' your experiences. You have a blog?
Keep your contacts in Au and elsewhere. Come here. Start a company. As soon as you have to scale, hire your best buds (who are competent & responsible) in places where half of what a junior level programmer makes in the Valley is a great salary for an experienced talented programmer.
Melbourne, while nowhere near the valley, actually has a fairly vibrant and growing startups/ co-working community. Granted this wouldn't affect you getting venture capitol or more jobs but it's defiantly something to explore before your count out staying in Melbourne as an option.
I have lived here for about 2 years now, and I will never leave. Being surrounded by like-minded and driven people helps me become a better person and keeps me motivated. Not to mention, there are meet-ups just about every night of the week. I would move here just for the hackers and founders meet-ups, I have met and learned a lot from those meet-ups.
Here's a good article on this:
http://jakek.posterous.com/just-do-it-move-to-silicon-valley
Besides networking, there also seems to be a ton of educationonal opportunities like seminars, meetups, and conferences of the quantity and quality that you won't find anywhere else.
Besides networking, there also seems to be a ton of educationonal opportunities like seminars, meetups, and conferences of the quantity and quality that you won't find anywhere else.