"Techies, VCs, and the press are always swooning over the glory of the Bay area. This is where all the excitement, the money, and the people are, they say. And that’s true to the extent that your great big idea fits the current cultural mold of that environment.
If you’re looking to build the next web 2.0 social media eyeball-collecting application, don’t want to worry about boring details like revenues, and hope to either flip to Google for an early $20 million or get that Facebook billion-dollar valuation, the Bay area is exactly where you want to be. No where else do you have the connections, the people, and the atmosphere available to make that dream happen.
But this strain of startups is a highly inbred line that holds more risks than most people realize. It’s not that they never work financially, enough people are sipping Margaritas on sunny beaches from towering buyouts to prove the contrary. And it’s not that they don’t work socially — I personally enjoy YouTube as much as the next guy. It’s that the Bay area pipeline for building web businesses isn’t optimized to carry much else than these stereotypes."