Additionally, California is one of the only states that doesn't recognize non-competes [1], that is key for innovation and competitors coming up including small/medium competitors. This part is always overlooked.
> A few states, such as California, Montana, North Dakota, and Oklahoma, totally ban non-compete agreements for employees, or prohibit all non-compete agreements except in limited circumstances. [1]
There is also a massive augmented wave coming that is heavily underestimated and will change everything. The future is heavily content creation in new phases of technology which are huge. Overall, it is better to have a virtual economy that uses less resources than a physical one.
The new markets are definitely remote and that is how you communicate with most people now even in the same building, so being physically in California isn't as needed. Though the policies of not recognizing non-competes needs to go nationwide. Non-competes are anti-innovation, anti-worker, anti-business, anti-competition and only help the bigs.
Tons of companies that aren't in California don't have non-competes or have very limited ones. I've never had a meaningful non-compete in the course of my career. (Had a very narrow one when one company was acquired.)
I'm certainly not a fan of non-competes but note that, even in California, a company can drag you into an expensive court battle over non-solicitation clauses, NDAs, etc. It's also a matter of non-competes not being enforceable in general. A small company may still choose not to hire you if they think there's a possibility they may need to go to court.
Yet with the high rents and the lack of universal healthcare it takes a crazy person to take such a risk. I personally will start my startup from abroad when the time is right.
Yes, it’s still risky. But at least you’re still understood because of the pervasive startup culture in SV. Everyone in SV can relate to startups. I think what’s tough outside of SV is that people don’t relate to startups. People might think you’re just weird.
Investors want to meet a slightly smarter but younger version of themselves. This makes them feel comfortable with the risk of their investment, they imagine all kinds of congruencies between you and them, even if they don't exist. They want to convey some nugget of wisdom that you, the entrepreneur, reverence as they key to their success. But most of all, they want you to be a money tree that buds and flowers and bears fruit continually, to the degree the generated revenues are a problem. Anything less, and they go silent for a while before applying pressures with rarely helpful advice from non-technology or old-technology backgrounds.
Some VCs want to see you have a good team that works together, and some combination of good ideas and work history that makes it seem like your startup will take off even if you have to pivot and give up your current prototype.
Others are having a midlife crisis and want to be your new rich dad, or they want a cult leader who makes them feel smart and throws cool insider parties. In this case it helps to be a white guy or at least Elizabeth Holmes.
One would hope YC is the first since we’re on their website, but having read pg’s essays and noticed his advice for startups is half post hoc fallacies (“use Lisp because I did”) and half is unethical (“don’t hire women or people with accents to get culture fit”) I dunno.
There's a strong distance effect, where investors will invest more easily companies located near them. It could be that this will change after a year of experience with doing everything online, but it's been true historically.
Yeah? On paper, 401k, or elsewhere? Where have they worked and for how long?
Because in my experience, the “everyone who works at a FAANG is a multi-millionaire” meme is 100% bullshit. Especially when I read things like https://news.ycombinator.com/item?id=26336029
I never said everybody is, but I do think most people who have been at FAANG or companies that pay in the same ballpark like trendy late stage pre-ipo companies for 10+ years are or are close (especially if we define multimillionaire as >2m networth including 401k and house equity, and include household wealth for married couples).
My other comment you linked I still stand by. But you don't need to be IC6/L6/E6, refreshers and equity appreciation are very powerful if you are lucky enough to get both.
I don't think that's the primary reason, nor as common as you imply. The old saw about how SV is a place where failure isn't disrespected is closer to the truth.
