Why Are Startups Flocking To SF? There’s No More Room In Silicon Valley

Every startup I know of that moved to SF did it because they thought it would be easier to recruit hackers there.

Isn't it just a flat out better quality of life choice to live &#38; work in a city? Traffic and a commute etc, and the lack of local food alternatives... that just sounds terrible!<p>(I like dense urban locals)

I think there should be more major cities like SF.<p>The reason is that this will cause infrastructure to be built. While I am (still) living in Europe and have very good infrastructure as someone interested into technology I fear that such developments could cause infrastructure to mainly be built at certain cities making everyone else living in some kind of desert, which could cause places to be underdeveloped, which leads to inequality, which then leads to unused potential, which is generally a problem that people see way too seldom these days. If you have people that are poor and stuff this means you loose potential, which means you waste the chance of someone bringing everyone forward, which maybe causes the next Einstein (just to make a point) to become a criminal instead of solving problems and creating amazing technologies.<p>One could see it as evolution. If the first humans had have bad luck, because of being at a bad spot, where intelligence wouldn't have helped at all, there was a drought period or just a predator or a virus, maybe even a meteorite they could have just gone extinct and could have exterminated a race that now can be considered dominant.<p>You could also see this with genes, like the one that causes western people to be able to drink milk. If the first individuals had back luck we probably wouldn't have that option now.<p>So every time you prevent someone from having the right infrastructure, eduction, society, life and if it's just the money you potentially prevent someone from solving the biggest problems.<p>Yes, one can argue that someone smart could make his life everywhere, but people need to learn this first. No matter how smart you are, if you just don't know you can do it that way, because you have no examples and no parents that tell you to make something out of yourself and instead society just reinforces you to do something different or bad you won't become a scientist, even if you'd have the potential for a Nobel Prize, unless something causes you to find it out, have self-esteem, etc.<p>So, it's okay to build nice technology cities and invest money in certain areas and places, but it would not only be bad, but also dumb if this makes you forget about the rest.

Housing sucks in the valley too. Too expensive and car driven to appeal to the young hackers.<p>Singles enjoy the city life and those with families get more value in the East Bay with SF just being a BART ride away.

There's also the lack of soul-crushing suburban sprawl of the south bay, and the fact that you can legitimately live without a car.<p>Still no late-night coffee (with wifi!) but that has a higher chance of springing up in the city than in Santa Clara.

What nonsense. East Menlo Park near Facebook has vacancy, and it's just a ten minute drive away from Palo Alto. Or drive across the bridge an extra 10 minutes from there and there is infinite room in Fremont and Newark.<p>A minor inconvenience could lead to a lot less burn rate spent on rent.

I'm surprised Palantir wouldn't consolidate somewhere. I know Peter has discussed how communication breaks down even just being on different floors.<p>I also find the article unconvincing that companies are moving to San Francisco because they can't find real estate elsewhere. There are a lot of desirable ares in the peninsula other than downtown palo alto. And the fact is, San francisco is a very good place to locate right now.

Two words: Redwood Shores.

My company (not a startup but a software company) is moving from Sunnyvale near Moffett field to Palo Alto on Page Mill road. We are doing this because google is eating up all the real-estate in mountain view and sunnyvale.<p>We used to be located near google right on Crittenden near LinkedIn but had to move because google came into the market and theres no way we could match their bids. Now we have to move again because again google is coming into the market.<p>But still, we're looking at probably leasing the old facebook office space (speculation as my company hasnt formally disclosed anything other than that we're moving to palo alto)

Are SF and Silicon Valley really that different? Isn't Palo Alto like a 30 minute drive from SF? I know of people who bike the distance as a daily commute. Sure, there are advantages and disadvantages to living in and outside the big city (SF), but "why SF and not Palo Alto" seems to me like a rather unimpressive and, perhaps, not terribly important question. Something like "Why Silicon Valley?" may spur a far more interesting discussion :)

SV is not full at all... even Palo Alto, out of downtown, has countless vacant office parks. They're not accessible to mass transit though, which makes them not accessible to San Francisco folks which I think is a big part of it and which makes Downtown Palo Alto more attractive.

I think Davis is a good place to run a startup. The only downside is that it's too hot in summer.

What about Facebook's former office in Palo Alto (near Page Mill)? That should still be open.

I'm married with a kid, live in Mountain View and work in Downtown Palo Alto. Aside from rents I love it. The only reason I'd want to work anywhere else would be to save money. SF has zero appeal.

Every time I hear about Palantir I expect Gandalf to way against looking into it.

What's the scene like in Santa Cruz?

Think outside the valley.

Y'all talk about all these different cities as if the distance is that big a deal. Help me understand. In Texas, everything is 10-20 miles from everything else.<p>In other words, y'all phrase it as if these cities are very distinct and unique. All of Palo Alto, MV, Sunnyvale and Santa Clara can fit in the northern half of San Antonio.<p>SF vs. Silicon Valley is one thing.. but Palo Alto vs. Mountain view sounds like complaining about one side of the street vs. another.