What are the best cities to launch a startup?
I am still exploring entrepreneurship and am wondering if some locations are better than others to launch a startup. Industry standards say Silicon Valley. Why there? Thanks for your input. I just joined mosaicHUB and I am looking forward to connecting with other entrepreneurs.
If we’re talking not only about the USA, then you should pay attention on Singapore, Berlin, London, Toronto, Sydney.
As for US, outside of the Valley, the country has other startup hubs including New York, Boston, Austin. Los Angeles is also considered as one of the favorable places for launch a startup. And from this article https://rentberry.com/blog/best-city-to-launch-startup your can find out why.
If the formula is right you can start in the smallest town and be successful. It all depends on market size and your offer for that market. And then it's your budget that determines where you can get located. F.e. a prime location with a needed product in a small town may be better than a bad location in a city.
I would say anywhere BUT San Francisco. SF used to be a great place to launch, but now it's a great place to scale. It's just too expensive, and the best talent is angling for jobs at Apple, Google, FB etc.
Silicon Valley's special startup sauce is spread globally now. If you have a company in mind, my suggestion would be to leverage the networks, grants, soft money incentives etc. available where you live, build a fantastic, nimble company and then head to the Bay Area when you're starting to show unicorn character traits.
Hey Jacob, interesting question! I'd say start where you have the most backers of your idea accessible around you. Backers are folks who support your idea and are excited to share your story. They could be your target communities, everyday folks, influential post holders etc. For example, a bunch of proactive students living in a dorm, and who like your social networking idea, would be your backers. They'll encourage you, show curiosity and talk about you to their other friends. Backers create a buzz for your idea, which, in turn, builds your market and attracts investors.
Just my two bits here.
Hi Jacob, having just moved AWAY from San Francisco, my answer might be a little bit biased.
The truth is that without significant capital, San Francisco (and the Peninsula; Mountain View, Palo Alto, etc.) is a very, very high reach. Rent averages $3k+ for a one bedroom (meaning you have to be willing to seriously pony up for hiring talent) and similarly, office space is extremely expensive and hard to come by. That being said, if you want to have access to established angels and venture capitalists, the Bay Area is where it's at.
On the other hand, there are plenty of successful companies who have not joined the SF cluster and a growing number of those that don't even have a physical location: Automattic (known for Wordpress), Basecamp, GitHub, Buffer and many others are 100% virtual. Then, there is a tremendously fast-growing niche of contractors (like myself) who have clientele in the Bay Area and don't actually live there. It's amazing how quickly companies have embraced remote and virtual talent and how much it's become a part of the startup culture to work collaboratively via Skype, Google docs, Slack, etc.
Hope this is helpful!!
If you have a billion dollar financier then go Silicon, it's got great resources and is the most expensive real estate in the country! Personally, I think where is one of the last questions to ask. For example, the state of CT just lost GE and Pitney Bowes so if you've got some tech company of size to fill some of their empty space you can get a sweetheart land deal. Likewise, NY competes aggressively on tax compensation for manufacturing. If you are small then it might matter to have proximity to certain resources, supply chain or distribution or quality of your own life but I think you first pick your cart and then decide what horse you need to pull it.
This question depends on the following reasons:
1. What type of industry are you looking to launch?
2. Do you have the Capital, to make the switch from a W-2 to a 1099 or ETC...?
3. Depending on the state and the industry you are looking to go into, the South (Texas) has the Best Top 5, for doing this as a New business owner.
Once you know this min. amount of information then you have the ball rolling to make a choice for you and your family Sir.
I hope this helps.
Jacob what is wrong with the city in which you currently reside? If the human capital is not there you will need to research what cities have the talent you require. What is most important at the start up stage; human capital or raising cash to launch?
Having been involved in a number of start ups, small and large, their are a number of variables to consider.
Feel free to reach out to me if you would like to discuss.
There are several variables that need to be taken into consideration, area of which you want to target your product, availability of resources and environment where you can be happy.
First what industry standards reflect that Silicon Valley is the best location, that's totally ridiculous. For example if you want to launch a startup that deals with Health Care you may want to consider Boston because of the great hospitals or Nashville because of the insurance companies and healthcare providers.
You also want to look where there are resources that are available such as a workforce you can tap into once you become bigger or if you need that occasional help for a short period. This does not represent a real issue since a lot of support and work can be done remotely, but with full time employees you may want to consider the local workforce or at least a place where someone may want to move to.
You need to have a place you are comfortable. Do you thrive in a big city or do you like a more remote location. If your not happy you will have difficulty succeeding.
What I have found is that I need a place that has great internet service, an airport that is accessible to anywhere I need to go and an environment where I enjoy a quality of life.
In all honesty there is no best location in which to launch a startup. You can create something and open up shop from literally anywhere in the world unless you are trying to target a specific market or face to face interaction with a niche group. If you would like to discuss more in detail PM me and I will gladly provide some insight.