IDOBATA8 Community Square

Depending on the nature of the startup's business, its resources, and the specifics of this inquiry, there are a few different ways to respond. For the sake of argument, let's say the hiring business is based in a VC hotspot and is seeking for a site to base at least some of their operations (ideally, the entire company). My expertise lies in the startup industry in the United States, thus I will be concentrating on locations in that country.

To begin, think about the young company that is short on funds but not on time or difficulty of the challenge (beyond runway considerations). In other words, neither competitors nor customers are putting pressure on them to produce, and the means by which this is accomplished technologically are well understood. Since the best technology also tends to be the most cost-effective, it makes sense to outsource development to a country with relatively low labor costs. Less efficient communication, fewer in-person meetings, and cultural confusion are all minor drawbacks compared to the potential savings.

Hiring the dedicated development team in a nearby low-cost market can be effective if you add certain time limitations or enhance the problem complexity enough that speedy communication becomes vital. Here, "nearby" refers to being in the same time zone and having easy access to public transportation. These are the Pittsburghs, Chicagos, Austins, Denvers, and Portlands of the United States; cities that are both affordable and technologically advanced. Amazing startup teams can and do emerge from any of these locales, but the talent pool is far smaller than in major urban centers. Yet, the fact that team loyalty is more here than in larger cities helps to offset that (less opportunity to jump ship).

There is a smattering of good technologists who choose to live in the most unlikely corners for non-technical reasons; some of these people face limited options, and can be quite dedicated, and experienced, so a distributed tech team can work if you are a fan of distributed teams and are willing to install the culture that allows it. Someone who built a great career working from the north shore of Hawaii's Big Island and another who reared goats as a hobby in rural West Virginia were both employees I previously had the pleasure of employing.

A larger secondary market (such as Los Angeles, Seattle, Boston, or Washington, DC) or a primary market (New York City) may be desirable if the key challenge for the business is fast increasing the team and if cost is not the primary consideration. Despite the higher prices, these markets have deeper talent pools with many experienced 'C' level players, making them preferable to the smaller secondary markets. This is a time-tested cash exchange.

Naturally, the Bay Area has the largest concentration of enterprises, the most resources, and the most compatible values, making it the best place to find a job. Everyone in your neighborhood is involved in the tech industry, and many have worked for, contemplated working for, or want to work for a startup in the future. The prices are through the roof when compared to more rural areas, but you can't grab a cup of coffee there without overhearing at least a few groups of wide-eyed locals discussing their plans to conquer the globe. Therefore, qualified individuals are in high demand, making retention a challenge.

This is conditional on the availability of developers, which I've primarily discussed as a criterion for forming a dedicated team, but I've otherwise characterized technology in a very broad sense. Certain niches are uniquely suited to one or two urban centers: For instance, the Robotics industry prefers to be in close proximity to a reputable Robotics department and Washington, DC, is where most people working in the field have the most experience with projects involving the United States government (CMU, MIT, etc).

Santa Barbara, Wisconsin; Madison, Wisconsin; Burlington, Vermont; Corvallis, Oregon; etc. are examples of small market universities I have chosen to ignore. In those regions, talented graduates flood to the aforementioned marketplaces every spring, making it difficult to form and maintain a team. I have also disregarded cities like Detroit and Las Vegas that are counting on technology to save them; these cities provide certain benefits for new business startups, but they have significant challenges when it comes to attracting and retaining qualified technical staff.

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264.4

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