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You don’t need to be in the Valley

Fred Oliveira on October 23, 2006 Comments (12)

The New York Times ran a piece today titled “It’s not the people you know, it’s where you are” – and I strongly disagree, which means one of two things: either I’m wrong about the startup world today, or the Times is.

Reminder: Ideas are global

The biggest mistake of the New York Times is not recognizing the value of great ideas – which, as I’m sure YOU know, are everywhere. In fact, a new world changing idea can be (and probably is) taking shape in a napkin drawing at coffee shop anywhere in the world – right now.

While the Bay Area ecosystem is a great place to start a company – in every corner, there’s probably someone who’s been down the same path and knows people valuable to you and your business -, it is up to the entrepreneur to actually dig around for resources and run with an idea – and again, that can be anywhere.

Don’t be afraid of distances

The reason why I’m posting is because I love companies, and I love people with ideas who manage to generate value from them. An article such as this one in the Times does little more than scare people into thinking they can’t make it unless they’re in Palo Alto, Menlo Park or San Francisco. Truth is you can.

Need to talk to people in the valley? Fly over. Need to meet the VCs? Fly over. Need to live the dream for a while? Fly over. Heck, drive over if you can. But take your ideas and run with them wherever you feel comfortable. Others have (think Skype, for example).

Read more

Fred Wilson has a great take on this story as well, and himself being a VC, his opinion probably matters a whole lot more than mine could. Go read his post.

Disclosure: If you’re a long time subscriber, you probably know I was in the valley for a while and decided to come back to Portugal (and Europe as a whole) to start our company. And while I miss the people (and can’t wait for an excuse to go back for another while), I don’t regret my decision.

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Josh

The Times seems to be forgetting about these tools we have at our disposal nowadays called the Internet, and telephones, and fax machines, and even the postal mail. For anyone to suggest that you must be in a certain area to start an Internet company is silly. That sentiment flies in the face of the very spirit of the Internet–which in a lot of ways is the poster child of globalization (the good kind).

In fact, not only do you not have to be in the valley, but your employees don’t even have to be in the same place at the same time.

Folletto Malefico

I agree with both, this means that I don’t agree your “strong disagree”.

Of course, a good idea is a good idea everywhere. Still, it’s a matter of where the threshold is. In “the valley”, one shouldn’t have a great idea to be funded. Anywhere else, it’s hard.

And for “anywhere else” I’m talking not only about USA. Here in Italy is HARD to get any kind of funding and IF you could get it, the funder WANTS to change the project as its will. You notice clearly that this isn’t very good.

About ideas? Sure. They are already there. I know many people with good ideas that, sometimes, they find done by someone else in the USA, months after. Doh. You’ll see why many talents are leaving Italy. :|

Mind Booster Noori

Folletto: When you say «In “the valley”, one shouldn’t have a great idea to be funded», you’re actualy pointing out one of the benneficts of NOT being in the Valley, ’cause if your idea isn’t great you should have it fail flawlessly and learn with your mistakes, move on, and bet on a great idea. When the Valley funds a not-so-great idea they’re just wasting a couple of years of your time, and then you’ll have to try selling your startup on ebay. Great, huh?

Glen Stansbserry

Great article Fred! I couldn’t agree more, as a web developer from… wait for it… Kansas. Honestly, I don’t really understand how that article got published. Do coat makers only live in cold climates? Can you REALLY only publish a newspaper in New York? Man I hope not…

Folletto Malefico

“When the Valley funds a not-so-great idea they’re just wasting a couple of years of your time, and then you’ll have to try selling your startup on ebay. Great, huh?”

Sure, that’s a point of view.

But:
1. “not-so-great ideas” means also normal ideas. There are hundreds, thousands, if not millions of companies that live very well with normal ideas. Simply, they don’t “rock the world”. Is this so bad?
2. From a pragmatic point of view, it’s still experience.
3. Even great ideas doesn’t get funding, often. Living “in the valley” gives you just increased statistical probability of getting funds. That could mean nothing, or everything.

Ideas are important, but not all. History is filled with great ideas trashed just because they doesn’t get enough momentum.

It might not be “great”, but still it’s “more”. :)

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