Peak Valley? – AVC

Awesome read. I need to pick up The Economist this week.

I think this one comment sums up what no other ecosystem in the world has.

The density. And he even misses of few of the players in the density – the VC’s, the lawyers and even the companies (many used to be startups) that buy the startups – all are in one big area.

Maybe this shouldn’t be what makes an ecosystem thrive since we all talk about the power of tech in decentralisation and distribution but it seems in this case – density really does matter.

Peak Valley? – AVC:

Silicon Valley has always had one important advantage over other regions when it comes to the tech sector. There is a much higher density of talent, capital, employment opportunity, and basic research in Silicon Valley versus other locations. When I say density, I mean physical density. If you walked a mile, how many tech companies would you pass along the way? That metric in Silicon Valley has always been higher than elsewhere and still is. So even though the return on capital (human and invested) has significant headwinds in today’s Silicon Valley, it is still a lot easier to deploy that capital there. And I think that will continue to be the case for a long time to come.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s