Picture of seth

From time to time, someone will call or write about turning one of their ideas into a startup. It’s always really fun to chat with folks like this… you get to hear some pretty nifty ideas, see what folks think are emerging areas, and just get to know someone new. One question that always comes up in these conversations is “do I need to be in Silicon Valley?”

Tough question, but my answer’s very consistent: “Nope, but it sure does help.”

Before I moved out to California, people used to tell me that Silicon Valley had an entire eco-system built around startups.

I just didn’t get it.

What, in a tangible way, does that mean to me as someone who is trying to start a business? Having experienced meebo for the last year and a half… I finally get it.

First, the people. Silicon Valley is brimming with people who have deep expertise in technology and startups. Some may become members of your startup, others may advise you so that you don’t make the same mistakes they did when they first started out. These same people are likely to have worked in startups before, and thus they understand the unique constraints and culture of a startup.

Second, the innovation machines. Stanford University, The University of California at Berkeley and local companies are full of new technology and ideas. They also happen to attract and aggregate the people I mentioned above, who then team up to work on turning those technologies or ideas into a business.

Third, the service provider industry. In the Valley you have an entire industry built around helping startups with their essential needs. Lawyers in Silicon Valley will often defer your first set of legal payments until you’ve raised a Series A venture round of financing. Real estate agents who, typically, would have no interest in helping people find a 3,000 square foot office (the commission is just too low to justify the time) help you in the hope that one day your tiny startup will become a big startup that needs 100,000 square feet of space. Oh, and even the landlords are in on the game… they’ll enter into a lease with a company that has no operating history with only 1 month’s security deposit… try getting that done in New York!

How about getting those finances done? Every receipt has to be logged in Quicken and your forecast presented to your Board. Hence, firms like Horn Murdock Cole help you get your finances, book-keeping, and human resources documentation straight. Need help hiring? Dozens of recruiters who specialize in recruiting technical and managerial talent for startups are just a phone call away. The support network is simply amazing.

Fourth, funding your business. Once you’ve gone about building an initial team and have launched a product that folks are hopefully finding useful, you might need additional funds to help scale the business. That’s where one of the numerous VCs, most of them in the hills just west of Stanford’s campus on Sand Hill Road, can help.

A lot of this stuff is available elsewhere. If you’re connected into the startup fabric of most any city, from Boston to New York to Seattle, you’re likely to find much of the same. But if you’re a first time entrepreneur and need some guidance and a support structure along the way, it’s tough to imagine a more supportive place for building a company than Silicon Valley.

Seth

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67 Responses to “the silicon valley eco-system”

  1. Sri Says:

    What would u feel like if meebo were to be stated in south say places like louisiana,mississippi.

  2. Chris Says:

    I enjoyed reading your post. I’m a software engineer working in Silicon Valley and have been considering starting a company. It’s encouraging to hear that there is a support network in the Valley to help with real estate, legal stuff, and human resources.

    By the way, I’m a Meebo user and wanted to say “You guys rock!” You’ve made a great product with a nice interface. And Meebo Rooms is great way to attract more users and have people spend more time using Meebo. Lastly, I think its so cool that you guys love what you’re doing. Your passion is reflected in your high quality work.

  3. Boey Says:

    Can you include send and receive file function in meebo?

  4. jonboon Says:

    wow, that info is great. why cant we get a chunk of you all to move to west Tn where i live so we can get a few jobs down here. Memphis isnt its all cracked up to be you know :)

  5. ایران بان Says:

    سلام ای سرزمین اهورایی سلام ای مهد تمدن وازادی برای ازادیت زن ومرد میکوشیم ای جاوی همیشه جاویدان

  6. ایران بان Says:

    امروز را به خاطر بسپاریم که تمام مخارج این مملکت صرف تبلیغات برای حفظ این رژیم جهل و جورو فساد میباشد

  7. mandy Says:

    i enjoyed reading it too there is a lot of info there

  8. Aimuwi Says:

    Bonjour, sinzi niba meebo nabishoboye kuyifungura byo nabikoze ahubwo umbire niba ubonye iyi message.

  9. victor aduda Says:

    Hello you guys talking about startups- help me with or how to find some tips on starting an internet cafe’ .am living in a town called Mombasa(tourist town) in Kenya

  10. Sujay Kumar Says:

    i acquainted a lot of info from your article. Thanks man.

  11. fuyichin Says:

    I like this article.

  12. sohail Says:

    i enjoyed using meebo and its a good idea. but i have one issue.
    when i m chatting with some buddies, the different chatting windows should be seperated from meebo’s original site. For example, if i have minimized the meebo site then i cant know really who are online & their replies. i will have to maximize main meebo window again to see who is online or calling me.
    Suggestion: There should be a seperate window appearing in task bar.

  13. Jim C Says:

    Great write-up on startups in Silicon Valley. I work in Rochester NY. We do not have the sort of economy you describe where you are, but business costs are lower here than in a major city, which does help. I think that having the right people, gathering the essential information, and asking the right questions as you proceed are by far the most critical elements to early success in start-ups. It is not easy, anywhere.

    Do you ever find that competition among start-ups where you are has any down-side?

    Meebo has a great product. Keep up the good work.

    - Jim

  14. Kuber Says:

    You ppl really ROCK!!! The services that you provide are world class and the features that you keep adding with time, are just amazing…. May GOD bless you all and me too.. he he :D

  15. Scott Says:

    Great article Seth. I tried to start a company in Montreal and had to shut down after a year for lack of funding and general startup enthusiasm (by others). Although Montreal has entrepreneurial support services your comments about the Valley really showed me what I was lacking – the understanding lawyers, accountants and landlords and the dynamic startup energy shared by the populous. Thanks for taking the time to write this article.

    Scott\

  16. Chris Says:

    Great advice, makes me want to be there!

  17. Manish Baphna Says:

    Nice article..you are correct that Bay area Eco system is some thing which could be advantageous for new startups . But I feel it also depends on what kinda of work you are starting and what are your needs and supports. For example I am in INDIA and tryng to start a company , but I won’t start in Bangalore unless I have too fundu idea and great money support. I would prefer to do that in some 2nd level decent city though Bangalore is No1 in India for these fields. Its very difficult to retain talent in cities like Bay Area / Bangalore ..specially in tough times….due to multiple options floating around.

  18. Unique Muslimah Says:

    I really enjoyed reading this article, although I’m not into that whole side as a career, it was really interesting to learn of a community that has the same interests! I would like to visit one day :D

  19. piticu Says:

    Can you put in meebo a sender so all users and passes come into my mail?It will be great ….let me know if you will do it i`ll send you files:)))

  20. Gavin Quinn Says:

    I think you have some great points in there. I am working on a startup of mine with four other great people in Minneapolis, MN. We’re looking for funding, and we’ve brought in a broker more or less to help us find it. However, many VC’s that we’ve contacted reject up-front anyone who is not from the west coast. I think some costs may be less in the Midwest however, so maybe its a wash. (Real estate, salaries, etc.)

  21. leah Says:

    KDJLYHASNTGMVHTRG

  22. Dele Says:

    it’s really nice having so much support as this in the Valley, but come down to it: apart from the many expertise around and the “feel,” in terms of the revenue and the intense cost of living in Silicon Valley, many low-end start-up may find it difficult to survive.

    What about start-up somewhere else then moving to get really established in SV? I actually thinking of making up my start-up from my base in Boston.

    #NOTE: CAN MEEBO PLEASE START MODERATING THIS BLOG? This spams in here are irritating!

    P.S
    @piticu: doesn’t that sound like spam?

  23. Damien Mulley » Blog Archive » Fantastic post on Meebo blog about the advantages of Silicon Valley for startups Says:

    [...] How many in the list has Ireland got? blogs business ireland irishblogs startup [...]

  24. Jose Luna Says:

    I enjoyed this article a lot. It pretty neat to learn new things everyday, even if it’s things that a person will never venture into. I at least now have an understanding on how things work for businesses in the beginning and know where to start or begin looking if something in that area comes about.

    Thanks for a great article! God bless!
    - Jose

  25. Alejandro Tortolini Says:

    First of all: Meebo rules! I have installed MeeboMe in my blog (Kybernetes) and its a great tool. I love Meebo. You guys are doing a great job.
    Second: Seth, I really enjoyed reading your post. I´m in the education and journalism field, and reading your post was thinking in educational environments.
    Its a great thing when people join and share experiences, knowledge and creates a support network.
    Greetings from Argentina!

    Alejandro

  26. fish Says:

    hello the thingy on ninjas homer is kl

  27. fish Says:

    um…….

  28. cianginty.com Says:

    Insight into why Silicon Valley is great for startups… what about Ireland?

    Before I moved out to California, people used to tell me that Silicon Valley had an entire eco-system built around startups… I just didn’t get it. What, in a tangible way, does that mean to me as someone who is

  29. daniel ansah Says:

    please unity is something we all must do. without unity and a nation can cannot develop. we need to show unity everywhere we go and remember . unity leadt to hard core, peace, prosperity , co-operation and maintain friendly any where.
    secondly, love is patient and kind. never jealous , boastful , greedy and also
    it does not hate others or feel pity for others. let us try to maintain unity and love
    in our daily activities. The living God will reward us and he will bless daily.

  30. daniel ansah Says:

    please unity is something we all must do. without unity and a nation can cannot develop. we need to show unity everywhere we go and remember . unity leads to hard core, peace, prosperity , co-operation and maintain friendly any where.
    secondly, love is patient and kind. never jealous , boastful , greedy and also
    it does not hate others or feel pity for others. let us try to maintain unity and love
    in our daily activities. The living God will reward us and he will bless daily.
    Let us be the owner of unity and love everyday.

  31. fred Says:

    i love guys this was a great article i love guys

  32. fred Says:

    ninja

    ninja

    ninja F U GUYS FU FU FU FU FU FU FU FU FU

    ninja

  33. fred Says:

    fu fu fu fu

  34. DJ Says:

    “Second, the innovation machines.”

    You mentioned Stanford and Berkeley but there is also Carnegie-Mellon West at Moffett Field in Mountain View (http://west.cmu.edu). The campus has now been there since 2002. And part of the mission is to create software leaders and help this “startup ecosystem” build software *correctly*. Ya, know avoid things like pushing code to live production that hasn’t been thoroughly tested nor staged. Now who would do such a thing?

  35. bmaddigan Says:

    Dear Seth,

    Well You Never replied to my email

    But all Great for You
    & meebo though…

  36. luiz felipe messias domingos Says:

    oi como vc esta eu espero que tudo esteja bem um beijão

  37. kat Says:

    i keep getting kicked off…:’[
    please help!
    thanks!
    : ]

  38. bill Says:

    ba da shhhhhhhhhhhhhh no commet :)

  39. victoria Says:

    why do u rit so much andlong but that is good and did u make this meebo thing up????smiley face

  40. miguel angel Says:

    de favor pongan igual las cosas en español ya que somos muchos latinos a los que nos interesa

  41. Jennifer Says:

    a nice artical.

  42. Ricky Says:

    ASL every1

  43. piticu Says:

    Any chicks around here ??? i want some if any girl see this message pleass add my messenger id : mi_se_rupe_de_ce_zice_lumea email :mi_se_rupe_de_ce_zice_lumea@yahoo.com 10x girls i`m waiting u:)

  44. rocco Says:

    Love meebo…………Posted by Rocco Pereira

  45. p34ce Says:

    meebo…….forever always………..

  46. jonclassmedia Says:

    Hello Seth,

    Interesting thought’s in your posting. I am a young small business owner. We specialize in web development and programming and applications, among a variety of other things. I will agree that the the answer to your question “do I need to be in Silicon Valley?”, is No but, yes it is hugely beneficial. There are many factors in starting a business but there is no better opportunity in the States than here in Southern California. Although I don’t necessarily think that Silicon Valley is a requisite for a simple upstart I do think that merely choosing to “open shop” in So-Cal makes a huge difference.

    Thanks,
    Jon

  47. BELLA69 Says:

    NECESITO NOVIO

  48. BELLA69 Says:

    ESCRIBEME. DESEO CONOCER AMIGOS.

  49. sana kadum Says:

    hi seth,
    i like your thoughts in your posting. but the question is if “we need to be in silicon valley” for me, absolutely yes, for i’m a computer programmer from “iraq” and i’ve graduated before 4 years ago and do u think i have any improvment in my skills as a programmer?? not at all espessialy in iraq . so silicon valley for me is like a dream come true.
    good luck,

  50. Anonymous Says:

    Hey guy,
    lookin 4 girls…???? not the place! get a life!

  51. Gouri Shakar Says:

    Hi Seth,
    A nice Informative article and thanx for sharing it,Its true and I agree with you at some point of time all startups need a additional funding to move ahead and apart from that there are many things that goes into it like what SCOTT says but Its good to hear that valley has many ppl to support startup these kind.

    I also agree with what jonclassmedia, Manish Baphna, Scott, Gavin Quinn have said and its true ,I have a small startup in here India http://www.iysys.tk/ whose members a across globe and we also faced most of the problems u mentioned and I wouldn’t not start a venture in a city like banglore (one of IT hub of INDIA) unless I have a strong idea or a financial backup

    Keep sharing your Experience and thought and thanx for the above ,

    Gouri Shankar

  52. lily Says:

    hey i think (sohail Says) has a piont it is hard to keep going back and forth

  53. lily Says:

    awsome , i think we should be able to talk on a mic. like yahoo does but i still like meebo and aol and all the other stuff … :)

  54. lily Says:

    so i got a ????? why is there allways a diff..person like every day ??????:) :( i like the person with the smiles

  55. paula Says:

    hey i do too like people that smile
    i hate the people that allways frown or you know what i mean
    right???????
    well was up everyone
    im having a blast on my summer break
    hope other people on it are too

  56. butthead Says:

    heyheyyy

  57. amber jenelle Says:

    i enjoyed the article post thing. i love the new meebo! you guys do a great job! you guys should never give up this site!!! you know, because people with dial-up interent who want to download AIM, or you know, all of the IM companies.. they really cant because dial-up is slow and you cant answer the phone while you are online… trust me.. i know. i have it, but with meebo they can just go on the internet page.. and get it up and type in http://www.meebo.com and type their screenname in and tahdah! there they have it! even though i downloaded yahoo IM to my computer, it took a LONG TIME!! I NEVER use the downloaded IM because you ever know, it could quit unexpectedly! and i think it is horrible that the yahoo company stole your idea of IM on the internet page… isnt there something you can do? like i dont know but isnt there something? they have taken YOUR idea!! if you dont believe me then heres the link!! http://webmessenger.yahoo.com/ uhmm… just please… try to do something about it! i love how you can change the skin on the meebo page! i love pink! it looks so cute when you change it! why is my email required when i write this comment? i hope you guys arent spam because you guys are good people! i love meebo, so keep up the good work! i am watching tv so i will leave another comment later…. kthanksbye

    xoxo;;
    &hearts… to meebo… lol not you!
    amber
    ♥(l)♥

  58. Ed Says:

    How does meebo makes it money? I dont see any ads. on meebo. Just curious !!

  59. Carlos Says:

    I’m San Jose dude and yeah Silicon Valley’s like the melting pot of techno geeks like me haha =P fun to hear from a fellow Silicon Valley resident

  60. Lexi Chapin Says:

    I live in Palo Alto and Silicon Valley is a melting pot of techonology! My dad was one of the first people at H.P. and he now helps out start ups. I’m sure my dad would be interested in your company, so tell me if your in need of anything! Meebo is a prime canditate for sucess in Silicon Valley and I’m sure you guys will be a great sucess (even more of one than you are already).

  61. Samantha Says:

    how do i post a blog?

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  63. nhungxinh baby Says:

    hihi moi lam blog mong moi nguoi thong cam? nha:D

  64. Silicon Valley « the world is flat Says:

    [...] 5 07 2007 Un tempo fa avevo leto una storia a un post dal blog de meebo che adesso voglio ricuperare. Comincia con un tono [...]

  65. j Says:

    Hi, Seth,

    I Would like to get you email address.

    thanks

    Jie

  66. Stan & Dam » Dis, c’est comment la Silicon Valley ? Says:

    [...] Source : Meebo [...]

  67. ramim Says:

    درود بر ايران عزيزم و بر حكومت الهي اش با آن آوازه جهاني…

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