Andreessen Horowitz is opening an office in SF

There's quite a lot of large startups in that area that A16Z has (or had) a stake in and would only be a block away from. (e.g. Lyft, Okta, and GitHub)

Re: Andreessen Horowitz is opening an office in SF

#5

Post by michaeldorian » Mon, Mar 11, 2019, 8:32 PM UTC

lhnz wrote: post #3

I am hearing that startups are moving out of SF because it is too expensive. Can anybody explain the strategy here? I realise that funding is mostly centralised in SF, but this still feels weird to me.

What feels weird? Being in SF or startups moving out of SF?

Re: Andreessen Horowitz is opening an office in SF

#6

Post by [deleted] » Mon, Mar 11, 2019, 8:32 PM UTC

lhnz wrote: post #3

I am hearing that startups are moving out of SF because it is too expensive. Can anybody explain the strategy here? I realise that funding is mostly centralised in SF, but this still feels weird to me.

[deleted]

Re: Andreessen Horowitz is opening an office in SF

#7

Post by peapod91 » Mon, Mar 11, 2019, 8:35 PM UTC

lhnz wrote: post #3

I am hearing that startups are moving out of SF because it is too expensive. Can anybody explain the strategy here? I realise that funding is mostly centralised in SF, but this still feels weird to me.

My guess: brand/name recognition is HUGE for vc as they can get first-look to the top founders/start-ups. A16Z is one of the best VC brands and they want to perpetuate that (and being in SF paints that image). Relatedly, the start-ups A16Z funds can afford to be in SF. It's the less well-funded companies that are moving out...and are probably companies that A16Z passed on.

Re: Andreessen Horowitz is opening an office in SF

#8

Post by forgotmysn » Mon, Mar 11, 2019, 8:40 PM UTC

lhnz wrote: post #3

I am hearing that startups are moving out of SF because it is too expensive. Can anybody explain the strategy here? I realise that funding is mostly centralised in SF, but this still feels weird to me.

don't believe the hype. the numbers coming into silicon valley still dwarf the numbers going out, even if the number of those going out is starting to increase slightly

Re: Andreessen Horowitz is opening an office in SF

#9

Post by lozaning » Mon, Mar 11, 2019, 8:40 PM UTC

minimaxir wrote: post #4

There's quite a lot of large startups in that area that A16Z has (or had) a stake in and would only be a block away from. (e.g. Lyft, Okta, and GitHub)

Does anyone other than Microsoft have any stake in GitHub anymore?

Re: Andreessen Horowitz is opening an office in SF

#10

Post by mateo411 » Mon, Mar 11, 2019, 8:48 PM UTC

lhnz wrote: post #3

I am hearing that startups are moving out of SF because it is too expensive. Can anybody explain the strategy here? I realise that funding is mostly centralised in SF, but this still feels weird to me.

Office rents are lower in SF than in Palo Alto.