Yes, period, if you want to raise significant sums.

I’m only Bay Area-centric because I work here. Qualtrics, Atlassian, and many others prove you can crush it in SaaS without being based in SF.

But notice the non-Bay Area ones generally had to get further to raise a ton of venture money. In fact, Qualtrics and Atlassian only took money in secondaries, i.e., they never even raised traditional VC.

The Bay Area has a unique combination of two factors:

  • More VCs, by far, than anywhere else in U.S. + Europe.


  • More VCs “going for it” — i.e., optimizing around Billion+ outcomes.

The combination of the two means there is a ton of capital available to Bay Area, and Bay Area-ish, start-ups. It also means Bay Area VCs “pay up”, i.e. they pay higher valuations and prices.

The downside is these VCs are going for billion+ outcomes. So if that isn’t you — and it isn’t most of us — you may not like the bargain you get for all those millions. These VCs that “pay up” aren’t stupid.

View original question on quora

Related Posts

Pin It on Pinterest

Share This