Saturday, October 28, 2006

Silicon Valley is still tech Mecca?

New York Times has an article why Silicon Valley is still the Mecca for technology startups. A VC in NYC obviously has different opinions. And of course, except the VC in NYC has different say, VCs from other states or countries are arguing too. Just Google RANDALL STROSS, the author's name, you will see this article appears in the third and followed by the blog comment from VCs in the other stats. (BTW, it looks like Google crawlers works much harder than before. Soon or later, technorati, so called the real-time web search engine over Google, will have a tough time.)

"A VC in NYC" suggest the author of that article, Randall, who is a professor at San Jose State University to walk out of Silicon Vally to look at the world. But he might forget he was sitting in his NYC apartment writing that blog.

Randall lists many successful startups in Silicon Valley, while "A VC in NYC" appends others outside of Silicon Valley.

Randall is a professor, who is good at playing numbers, has some percentage numbers, like 43% web 2.0 startup in Silicon Valley. "A VC in NYC" has some counter numbers like two of the three top web 2.0 startups are outside of Silicon Valley. If we have all read the book freakonomics, we know everything can be explained by data. (ya, Google also has a rule, every decision should be supported by data.). But it gives me the feeling that "A VC in NYC"'s data are more individual cases, including his argument that there are some lawyers in NYC who are willing to defer legal fees and take equity shares. I trust more on Randall's data. And also, "A VC in NYC" seems not bother to argue 1/3 of ventural capital are in the valley. It might because it is a fact.

"A VC in NYC" ignored the talent, the drivers of the technology. I know MIT has 10,000 alumni in the Silicon Valley, plus Berkeley and Stanford. Silicon Valley attracts and builds the largest talent pool. Every startup starts with team building. There is no better place you can find the right partner through your personal network in the silicon vally quickly. Both authors should have quoted from AnnaLee Saxenian's book on immigration.

The world is going flat but Silicon Valley is the still the tech Mecca.

BTW, remember, I am living in Silicon Valley now. But I have lived in Boston, Europe, and Asia.

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