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The outlook for Bay Area startup space in 2017

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Re: The outlook for Bay Area startup space in 2017

#21
post #14
post #4

Earlier quoted context omitted.

Seriously, they should just become real estate investors. They get paid in all the funds funneled into startups, and the circle of life is complete.

A lot of them are also real estate investors.

So is it just the right hand paying the left hand but "funneling" it through a mechanism that's inefficient but may be profitable on it's own?

Re: The outlook for Bay Area startup space in 2017

#22
post #21
post #14

Earlier quoted context omitted.

A lot of them are also real estate investors.

So is it just the right hand paying the left hand but "funneling" it through a mechanism that's inefficient but may be profitable on it's own?

No the idea is that you invest on the real estate with your own money, and invest on start up with LPs' money.

Re: The outlook for Bay Area startup space in 2017

#23
post #20
post #15

I still don't understand why software startups get offices today. I don't see any value in pissing away half my capital enriching a landlord when there are perfectly good tools out there to collaborate without making everyone come to the same place every day. And it's even better for the environment if we don't make everyone commute. Can you imagine a world where all the software startups go fully remote and all that…

I know it's buzzwordy but after using it a bit I'm starting to think VR might really change this. Instead of losing all of the signals from in person communication, the accidental bump into's or a glance causing you to notice someone doing something relevant to you (or vice versa), you can just walk over to someone else's space and collaborate with them. If they need a period of focus, they can disconnect from the gr…

I agree with you but not till the headsets get lighter. I don't think I want to wear that thing for even a few hours a day when all I'm doing is email and coding.

Re: The outlook for Bay Area startup space in 2017

#24
post #20
post #15

I still don't understand why software startups get offices today. I don't see any value in pissing away half my capital enriching a landlord when there are perfectly good tools out there to collaborate without making everyone come to the same place every day. And it's even better for the environment if we don't make everyone commute. Can you imagine a world where all the software startups go fully remote and all that…

I know it's buzzwordy but after using it a bit I'm starting to think VR might really change this. Instead of losing all of the signals from in person communication, the accidental bump into's or a glance causing you to notice someone doing something relevant to you (or vice versa), you can just walk over to someone else's space and collaborate with them. If they need a period of focus, they can disconnect from the gr…

Why hasn't it happened with video conferencing then?

I once did an 'always on' google hangout with another guy when I was working on a software project with him. It was remarkably effective substitute for being in the same room. Key was it was always on and we could speak to each other when necessary. Nobody does this although in the companies I have worked in.

Also many meeting spaces have microphone quality issues, and it can be hard to hear people in the other meeting room as they have conversations with each other.

Culturally I think it will be hard to pull off, virtue of video conferencing not being used in the same way today.

Re: The outlook for Bay Area startup space in 2017

#25
post #19

Earlier quoted context omitted.

Collaborating IRL is more effective IMHO (and my experience working with remote offices). Plus, having an office can be a great perk: with a small commute (~20 min) and 3 meals a day, I save a lot of time/energy just on the food.

> Collaborating IRL is more effective IMHO I've done a lot of both, and what I've found is that in person works better if the company isn't "remote first". Being one or a few remote people sucks, lots of stuff happens in the office without you. But having the right tools for remote work makes it in some cases better. But even in the case of an office, when everyone goes remote, suddenly it's not so bad. At reddit, si…

We are "remote first". Major decisions happen over conference call and most communication happens over text and real time chat. I will likely never build a non remote company again. There are too many benefits. One is being able to hire anywhere, another is employee flexibility for people with kids. We work across 5 time zones and have made it work great. We have different complexities than other startups (subsidiaries,language barrier,async communication for some things,..) Those weren't blockers for us and it's made quality of life for most involved a lot higher. I have access to more engineering talent than most as well.

We have 2 "offices" 1 in SF and 1 in tokyo. It's completely optional whether you come in or not. Most people work from home. Our office in SF and Tokyo is mainly for entertaining customers and meetings.

Re: The outlook for Bay Area startup space in 2017

#26
post #24
post #20

Earlier quoted context omitted.

I know it's buzzwordy but after using it a bit I'm starting to think VR might really change this. Instead of losing all of the signals from in person communication, the accidental bump into's or a glance causing you to notice someone doing something relevant to you (or vice versa), you can just walk over to someone else's space and collaborate with them. If they need a period of focus, they can disconnect from the gr…

Why hasn't it happened with video conferencing then? I once did an 'always on' google hangout with another guy when I was working on a software project with him. It was remarkably effective substitute for being in the same room. Key was it was always on and we could speak to each other when necessary. Nobody does this although in the companies I have worked in. Also many meeting spaces have microphone quality issues,…

I've worked remotely at a few companies, some of which were "remote first" and some of which weren't.

I'm always surprised by the fact that more companies don't adopt the "always on" google hangout. It's literally in the name of the service, "hangout" yet people use it like a traditional conferencing tool.

If more people adopted it as a ROOM that you all worked in, I have a feeling many of the remote nay sayers would at least feel a little bit better about things.

Re: The outlook for Bay Area startup space in 2017

#27
>> "Will SF still be as appealing when the talent can’t afford to be here?"

If you're living responsibly, and saving like you should be, then I'd argue we're already at a point where talent can't afford to be there.

>> "Transportation is a major factor around where buildings are being built. It has to be unprecedented with how many more people are coming downtown and we basically have the same transportation system from 50 years ago, and similar levels of parking."

Call me cynical, but my faith that this city will, let alone state, will ever pull their shit together and build public infrastructure, is nonexistent.

Re: The outlook for Bay Area startup space in 2017

#28
post #10
post #2

Spending that much on rent for a starting company, is just completely ludicrous.

Office space is usually the 2nd biggest expense for any business, startup or not. but prices certainly get inflated with vc funding and high demand. aside from the price, office space is really, really important for attracting talent and creating a productive work environment. but I agree, it's so expensive and we try desperately to find the best options for the startups we work with in order to achieve these things…

Really? That blows my mind. We are small granted but for us office space is a little under 3% of our burn.

Of course we're in SoCal and use an economical coworking space. Are there no such things in the Bay or do they cost way more?

Re: The outlook for Bay Area startup space in 2017

#29

>> "Will SF still be as appealing when the talent can’t afford to be here?" If you're living responsibly, and saving like you should be, then I'd argue we're already at a point where talent can't afford to be there. >> "Transportation is a major factor around where buildings are being built. It has to be unprecedented with how many more people are coming downtown and we basically have the same transportation system f…

I wonder what it would take to really kill the golden goose, so to speak - to really drive away the startups. Every year I hear how place X is the new startup mecca and it's so much cheaper and has all these advantages, and it doesn't happen.

Some people would argue it's basically impossible for the city to kill the industry (if they are even vaguely reasonable); others argue it's already dead.

I don't know, myself.

Re: The outlook for Bay Area startup space in 2017

#30
post #24

Earlier quoted context omitted.

Why hasn't it happened with video conferencing then? I once did an 'always on' google hangout with another guy when I was working on a software project with him. It was remarkably effective substitute for being in the same room. Key was it was always on and we could speak to each other when necessary. Nobody does this although in the companies I have worked in. Also many meeting spaces have microphone quality issues,…

I've worked remotely at a few companies, some of which were "remote first" and some of which weren't. I'm always surprised by the fact that more companies don't adopt the "always on" google hangout. It's literally in the name of the service, "hangout" yet people use it like a traditional conferencing tool. If more people adopted it as a ROOM that you all worked in, I have a feeling many of the remote nay sayers would…

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