The Importance of Location With Tech Startups

Now is the best time to create a tech startup because they are popping up all over the place, but where are the best places for your startup? You might think that any state or country would be fine, but that’s not the case. Some areas are better for gaining venture capital while others will provide you with the tools for a niche market.

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Venture Capital

If you want the most venture capital to start your tech startup, then Silicon Valley is the place to be. In 2012 alone, $11 billion was invested in new companies. The second closest is New England with $3.3 billion, followed by New York with $2.36 billion.

There are many places where venture capital is easy to acquire, but Silicon Valley is definitely the best.

Niche Market

Starting a niche market is sometimes a good idea because it allows you to focus on a certain demographic. Most startups in Silicon Valley are overall businesses that are made to cater to many people, but New York startups are almost exclusively geared towards a certain niche. While these startups are often smaller, they are typically easier to operate and flip.

Flipping

There are two sides to this. If you want to get the most from flipping your company, then starting it in the USA is the best. This is because you can often sell your company for about 11.3 times its earnings. European companies usually gain 9.9 times their earnings.

At the same time, European companies are much easier to sell. You might have to wait months or years for a buyer in America, but you can quickly sell a new company in weeks in Europe.

Change the World

Many people want to change the world. This might seem like it would hold an entrepreneur back, but it doesn’t. In fact, about 30 percent of Silicon Valley founders create a company to change the world. While this also happens in other common startup locations, Silicon Valley has the most founders with this outlook.

While you can create a startup anywhere in the world, it’s best to strategically place it somewhere for the best venture capital, business strategy or outlook. There are many things to consider when creating a startup, but the right location can make things much easier for you.

Source: BizBrain

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