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Investing Outside the Bay Area

99 pointsby andygcookalmost 7 years ago

5 comments

joefranklinsrsalmost 7 years ago
Ignoring all the risk-tolerant VCs and angels, with billions (trillion?) of capital in the silicon valley ecosystem for a sec. If one simply looks at the big non-US tech companies development offices and hiring activities<p>Rakuten: San Mateo having most job openings outside Japan, next closest is Toronto<p>samsung: US having 1100 opening, next is india with 26. in US, there&#x27;s 114 jobs in california, next is texas with 81<p>Tencent: only offices outside China is Palo Alto and Seattle<p>It&#x27;s clear that most tech companies are aware that all the talents are in Silicon Valley - and because of chicken and egg effects, all the talents come to and stay in Silicon Valley. And when one forms a network in silicon valley, she would be bombarded with job requests with silicon valley companies every day, and if she chooses a better job, it would be still in silicon valley.
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arbugealmost 7 years ago
&gt; Redfin, the Seattle-based home buying site&#x2F;app, has been beating this drum for years, recently stating that we will see “mass migration” from the Bay Area based on housing. The CEO writes “Silicon Valley is going to leave Silicon Valley… the technology companies… they’re chasing talent, and talent is chasing affordable housing.” Redfin specifically identifies Denver, San Antonio, and Houston as the next hubs newer generations will seek out.<p>Rather odd choice of Texas cities in my opinion. If you&#x27;re going to go with Texas, I&#x27;d think Dallas and Austin are more obvious choices for technical people.
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PowerfulWizardalmost 7 years ago
It would be interesting to calculate:<p>- cost of living in the SFBA<p>- cost of living somewhere other than SFBA but generally &quot;equivalent&quot; in the sense that living there wouldn&#x27;t be seen as a negative<p>- a average-ish amount of VC funds that must be invested in a company before capital is returned.<p>- average amount of capital raise that goes to salary<p>- what amount of salary is due to cost of living.<p>It is getting a little bit convoluted, but that would allow you to approximate how much VC money is going to SFBA landlords due to the chokehold on housing supply.<p>We&#x27;re seeing a shade of this in the Amazon HQ2 process, but if you have actual physical mobility as an organization over different real estate markets and political jurisdictions it will shift the balance of power in terms of rents and taxation. I don&#x27;t think it applies to small companies for various reasons, but the motive is there.
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dawhizkidalmost 7 years ago
Bay Area startup scene is dying as is. With few exceptions no small startup can hire talent here anymore. IMO it’s a good thing that other cities will have a chance.
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chmaynardalmost 7 years ago
Advice to talented professionals everywhere:<p>If you have reached the age of 30, you should already own your home. If not, buy a home immediately. NOW. If you can&#x27;t afford anything decent close to your place of employment, quit your job and move somewhere where homes are more affordable. Your future happiness depends on it.
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