The market has also drove San Francisco based startup valuations to ridiculously high levels - you have to take the bad with the good.
All else being equal, a Silicon Valley/San Francisco based startup is able to achieve a much higher valuation than an equivalent startup outside San Francisco. However, this Silicon Valley/San Francisco based startup has to deal with higher real estate and salary costs.
> All else being equal, a Silicon Valley/San Francisco
> based startup is able to achieve a much higher
> valuation than an equivalent startup outside San
> Francisco.
How sure are you that that's true, and if you are, why do you think that is? Is it really so hard for a founder in - say - Vegas - to get on a plane to SF frequently enough to neutralise any location advantage? If so, sounds like a massive opportunity for a VC to get some really cheap deals (and hence my skepticism).
All else being equal, a Silicon Valley/San Francisco based startup is able to achieve a much higher valuation than an equivalent startup outside San Francisco. However, this Silicon Valley/San Francisco based startup has to deal with higher real estate and salary costs.