I strongly favor avoiding the Bay Area (my startup is in Chicago and New York). I'm ambivalent about this essay. But one specific point:
The author claims VC doesn't limit investments by geography. If you have a track record, that's true: the people who started Postini can found a tech startup in Yellowknife AB and get a round from somebody. But I've successfuly gotten an A round before, and been a part of multiple successful exits, and we did the circuit out west, and they absolutely do want you to be out there with them.
This isn't a reason to move out west, because you don't want that money anyways, but let's be real.
There are plenty of venture-backed companies based in NYC, including many that weren't funded by the many NYC-based VC firms and many by first-time entrepreneurs. E.g., Meetup.com was backed by DFJ in Menlo.
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I strongly favor avoiding the Bay Area (my startup is in Chicago and New York). I'm ambivalent about this essay. But one specific point:
The author claims VC doesn't limit investments by geography. If you have a track record, that's true: the people who started Postini can found a tech startup in Yellowknife AB and get a round from somebody. But I've successfuly gotten an A round before, and been a part of multiple successful exits, and we did the circuit out west, and they absolutely do want you to be out there with them.
This isn't a reason to move out west, because you don't want that money anyways, but let's be real.
There are plenty of venture-backed companies based in NYC, including many that weren't funded by the many NYC-based VC firms and many by first-time entrepreneurs. E.g., Meetup.com was backed by DFJ in Menlo.
Scott Heiferman founded a successful company prior to Meetup, and took funding after the Dean campaign put Meetup on CNN.
But look, I'm not saying it's impossible. I'm just saying what you probably already know: Bay VC looks at you funny if you're not in the Bay.