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Why Startup Hubs Work

paulgraham.com

41–50 of 98 posts

Re: Why Startup Hubs Work

#41
post #18

"willingness to help people out" would seem to suggest NYC, LA, and DC will be forever handicapped. NYC seems to be overcoming this through bei great in other ways, but LA/entertainment culture seems the antithesis of startup culture, although both constantly create new things from ideas. This all makes thhe demise of Boston even more stark and sad. It had every advantage except weather!

I'm curious why you think startup culture in NYC necessarily reflects broader stereotypes of NYC as a whole. Everyone here is very helpful.

> Everyone here is very helpful.

Which is also a stereotype. While I believe there are very many nice and helpful people in NYC, there is a still very much a "me-first" attitude. At the end of the day humans ultimately strive only to better themselves. Take that statement with a grain of salt, because enabling oneself can be manifested through social means. Hence why over time humans have evolved to understand that they can better themselves by social means. Either method is still a medium to which we can attain personal fulfillment.[1]

I think what pg is getting at is that the culture in SV leans much more towards this - that we can better ourselves by the help of others. Financial industries work better when individuals strive independently. I'm not narrowed minded enough to think that these are absolutes but more of leaning towards one medium over another.

[1] - paraphrased from Driven - http://www.amazon.com/Driven-Nature-Shapes-Choices-Warren/dp...

Re: Why Startup Hubs Work

#43

  "Having people around you care about what you're doing is an extraordinarily
   powerful force. Even the most willful people are susceptible to it."
Stupid idea, but may be, AA style support groups are needed. "Anonymous Entrepreneurs?"

Re: Why Startup Hubs Work

#44
A question for PG (or anybody willing to answer it):

Is there much difference between living in San Francisco and Palo Alto in terms of how much living/working there helps your startup?

And in these terms, is there any difference between Mountain View and Palo Alto?

Re: Why Startup Hubs Work

#45

An interesting question is why 'physical' hubs work and why all those elements can't be captured yet online? One key element to debate is randomness - pg does a good job I think in describing the value of randomness in terms of random meetings, shower thoughts - etc - There are many other examples of this process at work - e.g., in management/strategy: http://www.management.wharton.upenn.edu/siggelkow/pdfs/SOart... I…

Even physical micro-hubs like coworking spaces where I live in Phoenix do not capture the serendipity of interaction that Silicon Valley provides. Here you have to consciously decide to go where other startups are at. In Silicon Valley I just get a cup of coffee and there's a conversation at the table next to me about startups. Although, I have to say Twitter enabled more fluid communication in the startup scene here…

It might be that humans naturally possess superstitious minds that react strongly to elements of serendipity. Even the most scientific minds will have a hard time not having an emotional response to randomly getting into a conversation that shows potential of positively affecting their lives.

Re: Why Startup Hubs Work

#47
I see two reasons why you should be in the Valley:

1. You sell to startups 2. Your business model is cash flow negative, or you don't have a business model at all

If neither is the case, a "second tier" hub like Austin or Santiago (Startup Chile) will do fine with lower salary costs.

Re: Why Startup Hubs Work

#48
post #43

"Having people around you care about what you're doing is an extraordinarily powerful force. Even the most willful people are susceptible to it." Stupid idea, but may be, AA style support groups are needed. "Anonymous Entrepreneurs?"

That's what the Hackers & Founders meetups are for.

Re: Why Startup Hubs Work

#49
"Having people around you care about what you're doing is an extraordinarily powerful force."

Hit the nail on the head, explains exactly why I'm hungry for a mentor, even more so than an investor, enough though my savings is running out.

One thing I've realized why pg is so insightful is because he thinks really hard by digging in deep, about questions that most people don't spend more than a few minutes thinking about after saying, "hmm. that's interesting." Most people don't spend more brain-cycles after that obsessing over it.

Lesson learned: really really obsess over your area of interest, your craft :)

Re: Why Startup Hubs Work

#50
Next to drugs, the strongest predictor of imminent mental illness in a healthy person is a move caused by adverse economic circumstances (such as having to sell one's house, or move to a new city because there are no jobs). Moving scares people, especially after 25.

What the Bay Area and New York have in technology is an environment where (at least for now) people can bounce back from job loss (a likely eventual outcome of a startup) quickly and without having to move halfway across the country. I think this is a big motivator. Startups can thrive in the Bay Area because a person whose startup fails can find a good job shortly afterward, without having to move to another city.

Also, startup generation is a nonlinear function of the desire to launch them, because of the need to find co-founders and investors.

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