Why Startup Hubs Work
19 hours ago
- Startups naturally fail; the key question is what saves them in places like Silicon Valley, which acts as an antidote to the default failure.
- The antidote has two components: an environment where startups are the norm and chance meetings with helpful people, both driven by the density of startup people.
- A startup-friendly environment makes starting a company feel normal and encourages ambition, even for those who might not succeed.
- Chance meetings, like Sean Parker meeting Facebook founders, provide unexpected critical help that can compensate for typical startup disasters.
- Density of startup people enables chance meetings, diverse expertise matching, and the formation of social norms that promote optimism and ambition.
- Optimism is a distinctive trait of Silicon Valley, contrasting with other prosperous regions.