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The Decline of Investment in San Francisco Startups

tomtunguz.com

51–60 of 417 posts

Re: The Decline of Investment in San Francisco Startups

#51
post #44

Earlier quoted context omitted.

How do you know they're uneducated?

In Spanish and Portuguese "mal educado" == literally "poorly educated" is used to mean "someone with poor etiquette ... doesn't know how things should work" ... writer probably means in that sense.

> my Aunty Samantha got an awesome year old Porsche Panamera from only workin parttime > online... see>>>>>>>>>>>http://ow.ly/iBXm30dNtIZ

Re: The Decline of Investment in San Francisco Startups

#52
post #46

Earlier quoted context omitted.

It's almost comical how overcrowded BART has gotten at rush hour. Embarcadero and Powell stations become standing room only. I live deep in the east bay, and the new apartment building going up across the street has 1 bedroom layouts starting at $2800. Something has to give, or people will simply give up.

People should give up. People should leave the area. They should move where they can find a job and a cost of living that's reasonable. The fact that people don't give up is why landlords can afford to charge $2,800/month for a 1 bedroom. You can't rent at $2,800/month if no one will sign the lease.

> like Shawn responded I didn't know that someone able to make $6367 in one month on the > internet . read more>>>>>>>>>>>https://tinyurl.com/ly6hd5g

Re: The Decline of Investment in San Francisco Startups

#53
post #27

Earlier quoted context omitted.

If that was viable, people would move to Tracy or Stockton or Davis which are nearer to SF than Reno and cheaper. That's not how things work though.

But why isn't it viable? I don't understand.

VC's like their investments nearby and very few people would choose to live in those cities, in particular childless engineers.

It's the same reason Twitter, even though they threatened to move their office from SF to Brisbane several years ago, absolutely would never have followed through with it. Too many of their employees would have quit immediately, and we're talking about a town that's 20 minutes away, let alone 2 hours.

Re: The Decline of Investment in San Francisco Startups

#54
post #39

Earlier quoted context omitted.

Or the costs are driving potential founders out of founding. If you double your monthly costs, you double the amount you need to save in order to have enough runway to "two guys in a basement" your way into enough traction for funding. Plus you need more funding for getting enough roadway for employees and an actual business. Maybe I'm far more mobile than others, but I'm really surprised that there isn't a wave of p…

Nevada is too different, the combination of non-enforceable non-competes and the nice weather can be duplicated elsewhere in CA easiest, and this is happening. If your state has big corporate HQs forget about getting non-enforceable non-competes.

Wouldn't CA companies/employees not get pushed to sign unenforceable non-competes (because they're in CA, so it doesn't help the employer any, so they don't push for it in contracts)? So if you're poaching from CA anyhow...

Re: The Decline of Investment in San Francisco Startups

#55
post #26

Earlier quoted context omitted.

The article already addressed this. Real estate has no impact, since Palo Alto, which is equally expensive, has seen dramatic increase in funding. The trend is really random. Tomorrow Uber will raise $5bn and will all come up with a different explanation

I'm no local, but isn't it much easier to get to Palo Alto from places with lower rent than to SF?

Not really- you have to drive or live along a single train line (with no places with rent significantly lower than SF, really)

Re: The Decline of Investment in San Francisco Startups

#56

Earlier quoted context omitted.

Correct. And the best way to fix Bart overcrowding is to build apartments near where people work so they don't HAVE to commute.

Just want to point out that Detroit built itself this way through the 1950's and 1960's. At the time, urban planners thought it would be efficient and sensible design. What ended up happening, though, is that as factories shuttered, the neighborhoods that were built around them started to collapse. The net result was pockets of localized decay, that eventually led to the entire urban area rotting as more people left.…

if your entire economy rapidly contracts then you're going to have pockets of decay regardless. Detroit also is a massively sprawling city with 138 sq miles of land vs. SF's 49 square miles of land and oakland's 55 sq miles of land.

Re: The Decline of Investment in San Francisco Startups

#57
post #39

Earlier quoted context omitted.

Nevada is too different, the combination of non-enforceable non-competes and the nice weather can be duplicated elsewhere in CA easiest, and this is happening. If your state has big corporate HQs forget about getting non-enforceable non-competes.

Wouldn't CA companies/employees not get pushed to sign unenforceable non-competes (because they're in CA, so it doesn't help the employer any, so they don't push for it in contracts)? So if you're poaching from CA anyhow...

[deleted]

Re: The Decline of Investment in San Francisco Startups

#58

Earlier quoted context omitted.

But why isn't it viable? I don't understand.

VC's like their investments nearby and very few people would choose to live in those cities, in particular childless engineers. It's the same reason Twitter, even though they threatened to move their office from SF to Brisbane several years ago, absolutely would never have followed through with it. Too many of their employees would have quit immediately, and we're talking about a town that's 20 minutes away, let alon…

Too add to that, repeat founders often live in the area where they start their companies. Also, if you want to poach away a top talent in a niche area, chances are they are unlikely to move far from where they are currently leaving. Example, easier for Tesla to poach from Apple vs. GM to poach from Apple

Re: The Decline of Investment in San Francisco Startups

#59

Earlier quoted context omitted.

Correct. And the best way to fix Bart overcrowding is to build apartments near where people work so they don't HAVE to commute.

Just want to point out that Detroit built itself this way through the 1950's and 1960's. At the time, urban planners thought it would be efficient and sensible design. What ended up happening, though, is that as factories shuttered, the neighborhoods that were built around them started to collapse. The net result was pockets of localized decay, that eventually led to the entire urban area rotting as more people left.…

I had a similar thought seeing all the office/luxury condo construction going up in Redwood City. Their can't be more then a handful of "large" tech companies in the immediate vicinity and what will happen when they inevitably downsize (as almost all companies do over the course of decades...)?

Re: The Decline of Investment in San Francisco Startups

#60
post #46

Earlier quoted context omitted.

It's almost comical how overcrowded BART has gotten at rush hour. Embarcadero and Powell stations become standing room only. I live deep in the east bay, and the new apartment building going up across the street has 1 bedroom layouts starting at $2800. Something has to give, or people will simply give up.

People should give up. People should leave the area. They should move where they can find a job and a cost of living that's reasonable. The fact that people don't give up is why landlords can afford to charge $2,800/month for a 1 bedroom. You can't rent at $2,800/month if no one will sign the lease.

Move where exactly? So many people want to live there for a reason. If moving to another city saves you $1k a month on rent, but you lose $1.5k in income, it doesn't make any economic sense.
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