Does Location Really Matter for Tech Companies?

October 4, 2013

It’s an ongoing debate — does where you choose to build your company have a major impact on your success? Find out where six industry experts stand on the issue and share your own opinion — is it still “Silicon Valley or bust”?

Silicon Valley: It’s the mecca for techies and the home to the biggest names in tech. With an unrivaled community of tech experts, venture capitalists, and entrepreneurs, it makes sense many startups still flock to the hub. The question is — is that something many still have to do to in order to succeed?

OpenView’s founder Scott Maxwell shared his own opinion on the topic in an article for Inc. earlier this week, which is also summed up in the quote below. It’s an issue that warrants further discussion, however, and so we’ve compiled a short list of additional arguments for and against moving your company to Silicon Valley (or other tech hubs like New York, Seattle, Austin, and Boston).

Two Sides to the Argument: Does Location Matter?

Read on to learn what other successful entrepreneurs and investors have to say, then weigh in with your own thoughts in the comments section below.

Yes: Pack Your Bags and Go!

“Need a lawyer that understands how to help startups? They are here [in Silicon Valley]. Need an office with good startup help? Go see something like Plug-n-Play that houses 300 startups. Need a PR firm? They are here. Need a mentor who has built a company before? They are here. Need a launch vehicle, like a conference? They are here. Need a CFO who understands how to get a company ready for an IPO? They are here.”

–Robert Scoble, Scobleizer

“Location still does matter in terms of outcomes…. High network centrality of entrepreneurs has a material impact on outcomes of companies.”

–Joe Kraus, Google Ventures

“Location matters to start-ups because the people who provide them with resources — revenues, talent, capital, advice, etc. — are real people: They live in houses or apartments and commute to offices. They attend meetings and bump into each other randomly at coffee shops and in hallways. And company founders seeking to build, develop, and sustain vital trust relationships with their customers, suppliers, employees, mentors, and investors must meet with people in-person repeatedly.”

Peter Cohan, author of Hungry Startup Strategy

No: You Can Work Anywhere!

scott jones

“Ultimately, it’s all about connections. At the end of the day, it doesn’t matter where you’re located as much as how robust your talent connections, online connections, and flight connections are. If you’re well connected, the world is your oyster.”

Scott Jones, co-founder of ChaCha



“If your startup has the right leadership and vision, and it’s able to achieve product/market fit, then it shouldn’t matter if you operate in Greenville, South Carolina, or Cupertino, California.”

Scott Maxwell, founder of OpenView Venture Partners



joel gascoigne“Not being in the “right” location shouldn’t stop you making progress with your startup from your current location…to wait for any “perfect” environment, be it location, experience, funds or otherwise, is a mistake to be avoided.”

Joel Gascoigne, founder and CEO of Buffer

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Photo by: Mr.TinDC

Content Marketer

Josh is a Content Marketer at <a href="">Ambassador</a> which gives marketers the tools they need to grow customer relationships and drive revenue through word-of-mouth, referrals, and recommendations. Previously, he was an Account Executive at CBS, Inc.