Funding and Silicon Valley cachet
October 29th, 2007 by Benjamin KuoIt’s quite interesting, I’ve noticed recently where we’ve been finding out about local venture fundings, but the companies have been very eager to keep it quiet. I’m always mystified by the “hush-hush” around it, but, a few weeks or months later, I find out the companies have gotten funding from a Silicon Valley VC who only funded the firm if they promised to move the company to somewhere in Silicon Valley (usually Palo Alto or Sunnyvale). The announcement usually is hyped up in the Silicon Valley press corp and no mention that the firm started here in Southern California ever shows up anywhere. I’ve noticed the same thing with companies (particularly those with R&D operations in Israel or China) who do the same thing. I think there’s some sense of “Silicon Valley” envy.
On the other hand, I do hear from lots of (very successful) CEOs and founders of companies who tell me their “war stories” about convincing their VCs that Southern California is a better place for starting a business. They go on to build great businesses here, anyway. I think if you’re more worried about having the “cachet” of Silicon Valley on your firm than making your business successful, you’re less likely to actually focus in on the true factors behind making your company work…
