Bay Area vs. Seattle: Where would you want to start a company? |
Follow the ups and downs of a new Seattle startup in a series of behind-the-scenes posts by its founders.
Twilio co-founder founder Jeff Lawson is packing his bags and heading to the San Francisco Bay Area, where the bulk of the startup's team and investors are located.
The news comes after we reported today that Lawson's good friend -- Bill Monk co-founder Gaurav Oberoi -- had returned to Seattle to work on his latest startup project.
And the relocations of the two entrepreneurs raises a question that RescueTime co-founder Tony Wright asks today in a very timely blog post: "Should you move your startup to the Valley?" Wright offers some very interesting figures, showing that Washington state actually has the highest acquisition rate among other tech hubs.
He writes:
The bottom line? It’s hard to quantify the COST of moving to a startup (months of distraction, expense, stress, loss of social network, etc), but my gut says (as it always has) that if you live in a technology hub like Seattle, NYC, Boston or Austin– hunker down and start building value- your success is based on how much value you can give versus how much you take.
Lawson, a 31-year-old former Amazon.com and StubHub.com employee, said he's leaving for personal reasons. His wife recently earned a 3-year fellowship to the University of California, San Francisco.
Seattle and San Francisco are so close -- with Alaska Airlines and Virgin Airlines engaged in a price war -- that they are almost suburbs of one another, Lawson said.
"It is really pretty fluid, and I think actually having teams that are both in San Francisco and Seattle is a pretty natural thing," he said.
But Lawson also said he would love to get back to Seattle some time.
"I love this town. A.) just for the liveability of it and B.) I think it is a great place to start a company," he said. "There is fantastic talent here. Amazon and Microsoft bring in great people who have entrepreneurial desires and who are good developers.... Seattle I think is the nation's best kept secret for a whole lot of reasons."
But Lawson, who previously moved a dot com startup from Ann Arbor, Michigan to Silicon Valley in the late 90s, said it is easier to attract talent to northern California.
"It is not as easy to recruit people just because we don't have the reputation of building a career in tech," he said.
And while the startup ecosystem is much more mature in the San Francisco area, Lawson said that didn't play a role in his decision to move. Neither did the fact that Twilio's investors -- Founders Fund and Mitch Kapor -- are located in the Bay Area. Twillio has created a Web-based system that allows developers to easily create phone-based applications, with one example here.
So, what do you think about Wright's question about moving to Silicon Valley versus staying put? Is that relevant anymore? Does it matter where you are located? Where would you prefer to start your company?

Chart courtesy of Tony Wrigth at RescueTime
John Cook is co-founder and executive editor of TechFlash. He has been covering the technology beat for nearly a decade, writing about startups, entrepreneurs and venture capital, most recently serving as a reporter/blogger at the Seattle Post-Intelligencer.
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