The pros and cons of locating your startup outside Silicon Valley

Edited excerpt from Top 5 Benefits of Growing a SaaS Startup Outside of Silicon Valley by Jeremy Boudinet:

The advantages:

1. Low burn rate
2. Minimal employee turnover
3. Only gig in town
4. No hype/distractions
5. Chip on the shoulder – you work extra hard

The disadvantages:

1. Geography-based VC skepticism
2. Significantly fewer networking opportunities
3. Customer scarcity
4. Prospect skepticism

(1) The most fundamental disadvantage is customer scarcity, but that applies to being outside any major commercial center, not specifically Silicon Valley. Being close to customers allows you to learn about your customers, ask them questions, and observe them interacting with your product. So this goes to the heart of achieving product-market fit.
(2) I faced considerable skepticism from one VC that Seeking Alpha wasn’t located in New York, the key target market for investors. His concern was less about customer interaction for product-market fit, and more about marketing and sales opportunities. However, being located outside New York forced us to build marketing and sales relationships via the web without in person meetings, which is more scalable.

One thought on “The pros and cons of locating your startup outside Silicon Valley

  1. Pingback: The strongest reason why you should locate your office to minimize business travel | A Founder's Notebook

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