A few decades back, whenever any entrepreneur wanted to start a startup, they placed where they started it didn’t matter much. But these days, people move to specific locations to get maximum benefits such as startup funding or top talent, etc. People getting into tech space want to start their business in cities like San Francisco, New York, etc. investment from venture capital is concentrated in Silicon Valley and Acela corridor, amounting to about three fourth of the investment.
But as a startup, it is most of the time struggling to get funding, spending such a significant amount for office space and employees may not be the best shot for all startups. Startups could establish in cities or areas adjoining to the heart of the town to save money. Also hiring talent is cost-effective in such other cities. Recently a report was published on untapped startup cities in the United States, which presented tremendous opportunities in terms of cost-saving as well as exposure to investors and the right talent. Many of the towns have had hundred of deals in just couple of years, even though there are somewhat lower chances that you could succeed in such smaller cities as well because of lot of positive factors. Oakland area startups received more than 6,000 deals in last three years. Jersey city area startup had about 3,000 VC deals
Also, statistics show that having a team working from home or smaller teams operating remotely across various locations resulted in better productivity and more happy employees. Overhead costs are quite low as you do not have to worry about office lease, liability insurance, electricity cost, etc. tech companies such as Automattic, Buffer, Zapier have distributed teams working across the globe because of effective tools for communication and collaborative working.