A Guide to Micro Seed Funding

 

Advantage: Relocation to a Startup Hub

The Y Combinator program takes place in either Silicon Valley or Boston, depending on the season.  These areas are considered the top two locations for entrepreneurship in the nation, primarily due to the critical mass of both qualified entrepreneurs and the venture firms willing to invest. [1]  The network of energized entrepreneurs, investors, lawyers, and tech companies creates an innovative ecosystem difficult to duplicate in other locations.  In Silicon Valley for instance, monthly networking events such as STIRR or SF Beta provide entrepreneurs with the opportunity to demo their products to the crowd, discuss potential business partnerships with other companies, and mingle with investors.  When one goes to a coffee shop in the Valley, there is almost sure to be a casual meeting taking place between entrepreneurs and investors discussing a prospective deal.  

The entrepreneurial atmosphere outside of these startup hubs is not as conducive to growing a company since it's further from the action.  Y Combinator’s requirement to relocate all the companies to one of these startup hubs is in the best interest of all involved, even if it means leaving friends and family back home.  Close proximity to potential business partners, potential investors, and potential acquirers maximizes the company’s chances for success.



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Notes:
[1] http://www.paulgraham.com/siliconvalley.html