[quote=gzz]”the more disfunctional LA and Bay Area cities”
How many $10 billion+ companies were started in California the past decade versus Texas+Utah+Florida? I don’t hear much about Dell and Novell these days.[/quote]
I think that’s backward looking. To get to $10B, you’d have to start at least 5-10 years ago, unless you get lucky. We all knew CA and NY are where the VC money was. TX and FL were not really on the radar. However, past performance does not guarantee future return. If you want to see where the next set of $10b+ companies will be in 10-20 years, you’d have to look at VC funding today. Today, it’s still mostly bay area and NYC. However, Austin has beaten out San Diego (which was @ #10 6 years ago) last year to claim the 10th spot.
Also, just because they start in CA doesn’t mean they stay in CA. Just look at Tesla as a prime example. I know that cost of engineers here in CA is driving a lot of companies who have made it past survival mode to look outside of CA. When you’re in survival mode and need VC money, you need to be near the money. However, once you’re past that stage, distance to VC $ is no longer a high priority but cost of labor is.
