

Where the 'real' Silicon Valley is - hisyam
http://www.theverge.com/2015/2/5/7984489/silicon-valley-startup-entrepreneur-concentration-map

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giarc
>the model showed that corporations are six times more likely to do well
compared with companies that aren't incorporated.

Perhaps they have this backwards. Those companies are incorporated because
they are doing well, they aren't doing well because they are incorporated.

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kriro
Direct link to a related paper (Massachusets not SV) by the authors since
there's no reference in the article:
[http://www.nber.org/chapters/c13493.pdf](http://www.nber.org/chapters/c13493.pdf)

Science article:
[http://www.nber.org/chapters/c13493.pdf](http://www.nber.org/chapters/c13493.pdf)

[Beware here be paywalls etc.]

I'm not sure what to think overall. EQI strikes me as a somewhat strange idea.
But then again I'm interested in all approaches that go byound my crude:
networking and investors are there as are other tech companies so gogogo. Also
weather is fine but internet connections may suck :P

Edit: Nevermind, the link is at the bottom of the article. The "Source" thingy
is kind of hard to see.

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bcx
At first I was a bit confused by this article, and it looked like there was
likely a large correlation/causation bias in determining quality.

Especially since the two outcomes they were looking for were IPO and potential
for acquisition.

But after thinking a bit more about the topic, I think they have basically
determined how to detect tech companies as a proportion of new business
registrants per county. (Especially tech companies have a higher potential for
some form of exit, over the typical company given the pervasiveness of acqui-
hires)

As they said law firms (i.e. firms with the name of the founders in the name)
had less positive outcomes.

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athenot
Some of this is simply looking at the characteristics of companies that are
more mature (eg. incorporated, trademarks) as a predictor of success.

I wonder if the data takes into account the companies that incorporate in DE.

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swamp40
_> > I wonder if the data takes into account the companies that incorporate in
DE._

Yes, in fact they use it as a data point.

So if you have a short techie name, an office in Menlo Park, and incorporate
in DE, you are practically _assured_ of success.

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whatsgood
with quotes like "we were able to 'find' silicon valey" and findings like "the
best indicators of entrepreneurial quality were characteristics like a
company's name", it is surprising that the article does not discuss the role
that 'correlation' and similar phenomenon might have played in this study.

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sukilot
The study is really saying that getting these factors "wrong" hurts a
company's marketing and bizdev.

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spacecowboy_lon
why would you ever do a startup that was not "incorporated" being a joint
stock company with limited liability has too many adavatges not to go that
route

