

Why are all the startups in SF? - jk211e

There are so many startups in SF. What is the advantage for a startup being in SF? The rent is crazy high, salaries need to be higher due to rent, lot of competition for a skilled developer, etc.
======
argonaut
Firstly, SF != Bay Area (some people on this thread seem to conflate the two).
SF is only part of the Bay Area.

Despite what mchannon and deadfall say, the concentration of startups in SF,
versus other areas in the Bay Area, actually does not have to do with money.
SF is actually relatively far from venture capital than other places in
Silicon Valley. Most venture capital firms are based out of the peninsula (1
hour south of SF), in suburbian cities like Mountain View (YC and 500
Startups), Palo Alto, and Menlo Park (pretty much every VC firm, like KPCB,
Sequoia, A16z, Greylock).

Most people live in SF because 1) Young engineers/designers/others prefer
living there, and 2) the density of startups/entrepreneurship is greater. The
chances of you serendipitously running into someone "useful" is much higher -
the sheer quantity of networking events, technology events, social events,
etc. is mind-boggling. Compared to SF, there is literally nothing going on in
Mountain View/Palo Alto/Menlo Park.

------
deadfall
Being here for 2.5 years and knowing a pretty good amount of people in the
startup world all I can say is money. There is money to be had here. It is the
new gold rust. I came from North Carolina with nothing to lose and everything
to gain. I am not looking for capitol. I want knowledge. There are so many
amazing engineers here in a verity of fields. I love the inspiration and the
conversations I have. You never know who you will meet or what VC's house you
will end up having a few drinks at. I love the bay and I have no plan to move
anytime soon.

On a side note, the weather is not bad. The beach and mountain hiking in the
redwoods is a short drive away. A little further and you have some of the best
snowboarding and ski in the winter.

------
mchannon
Startups (ones that will eventually grow) need funding. There's arguably more
startup-accessible funding available in the bay area than the rest of the
world combined.

There's a half dozen other factors, but most of them end up relating closely
to funding sources.

------
byoung2
Industries tend to cluster. Automakers in Detroit, investment banks in New
York, country record labels in Nashville, movie studios in Hollywood. If you
start a startup in SF, you get a built-in talent pool that you wouldn't
necessarily get in Miami. Yes you pay higher salaries due to the cost of
living, but you get a bigger selection of candidates (to whom you'd have to
pay relocation fees to move them elsewhere). Plus, SF is just a cool
place...walkable, great nightlife, culture. You don't get these things in a
place like Phoenix.

------
OafTobark
Having lived in the Bay Area for more than half a decade, I can confidently
say it has a lot to do with the fact that many people prefer to live in SF
than in the suburbs (night life, etc) and building a company in SF is an
attractive thing compare to asking people to commute (even if there are people
doing it).

------
prateekj
Startups need people. People need to have a life. SF offers precisely that!

