Ok, roll out your megaphone and stand on your soapbox! We have to talk about the Valley. It seems that once again, a single industry luminary (in this case Tom Siebel) has pontificated to a newspaper about how the Valley has lost its peak, is past its prime, is waning in power, and so on ( you can read the whole thing here). As someone who has never lived in the Valley (full time), and has worked in technology startups in Chicago and Portland, I have some outsider knowledge of the industry. I do however find myself in the Valley quite often, probably around six times this year already if not more. That experience lets me know a few things about the difference between Silicon Valley and Not Silicon Valley.
To begin, try finding a great developer anywhere else. Not a PHP guy, but a solid CS major who can really conceptualize the whole process of the project development. Ok, now find three more. In the Valley, I could just roll out of bed, wander over to Stanford and grab a few by the collar. Talent is much sparser elsewhere in the world. It is not always possible to attract the talent you need, leaving holes in your team that slow you down. This is especially true in Portland (apparently most developers shun the area for its great city and pleasant weather). And, of course, a tech company without developers is akin to a car with no engine or brakes; this search for developer talent is a real and honest problem in many areas.
Let’s try running a little experiment. Head over to CrunchBase and look at this search. That area, in downtown San Francisco (loosely in the “valley,” although some purists will complain), has about two dozen tech companies in four blocks. Find that level of concentration anywhere else in the world and I will eat my hat. With each of those companies having talented tech teams, there is practically no limit on the number of people open for employment. For anyone trying to build something, that is a major boon.
Now let’s talk about money. Most tech entrepreneurs dream of landing a big VC check at some point in their life, and the pursuit of that money is key to actually receiveing it (shocking, I know). And where better to do it than in the storied Sand Hill area? There is a great concentration of both VCs and Angels there. With blue chip firms such as Sequoia abound, there will be more stupid-money than possible to waste or comprehend, especially during economic booms. Whatever the market, the Valley is the best place to become funded.
Past all the important parts, the Valley will always have something that pulls people to it: sun. California has some of the most damn pleasant weather to be found anywhere. Explain to me why I must suffer through the Chicago winter (well, because I love midVentures, but that aside)? Nerds don’t like to worry about dress, so by giving them a climate where they can wear shorts year round is brilliant. Put them anywhere else and they will run back to the warmth.
A lot of this is subjective, but it boils down to this: there is still more development, more tech people, more investment, and more new tech startups in the Valley than anywhere else. You can start a tech company anywhere, but the best location is still the Valley. People can wish it another way, but if you’re rational and want the path of least resistance, the Valley is your best bet.
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