Assuming there is only one place where innovation truly happens is harmful to the startup ecosystem. As a bi-coastal firm, we have seen the benefit of growing a business right where it is. If you start something right now and build it where you are, you will have taken the most important step on the road to success.

1. Why the Best Place to
Start A Company Is Right
Where You Are
by Brady Bohrmann
Partner at Avalon Ventures

2. About Brady Bohrmann
Brady has over 20 years of experience as a venture capitalist and
operating executive in both information technology and biotech. His
focus is on early-stage investments and backing talented entrepreneurs.
Throughout his venture capital career, he has worked with over 75
companies. He currently is a director or observer of many Avalon
portfolio companies, including Backupify, Chart.io, Cloudant, Inc., Conjur,
Indix, Juliet Marine Systems, Kaltura, Kinvey, Memrise, Nanigans, Pingup,
Redbooth, Selectable Media, Simulmedia, The Happy Cloud, Twinstrata
and Vook.

3. Entrepreneurship is a difficult
yet rewarding journey.
Entrepreneurs and investors alike are driven to a
place where we can be surrounded by those who
also value what we devote our time and energy to.
However, assuming there is only one place where
innovation truly happens is in fact harmful to the
startup ecosystem.

4. Our Perspective
Avalon Ventures is a bi-coastal firm. We love the
Valley and the role it plays in the ecosystem of
innovation. There’s no denying the benefits of the
Valley, such as the propensity of large companies to
“buy local” in terms of acquisitions.
But assuming there is only one physical place where
entrepreneurship abounds is just not the case today.

5. 4 Reasons to Build Your
Company Where You Are

6. 1. You already have access to
a vibrant startup community
There are more places than ever to find support,
encouragement, ideas and advice — virtually.
Although this is not a replacement by any means to
real world relationships, founders and investors alike
are open to virtually sharing insights on the highs
and lows of entrepreneurship.

7. There is a vibrant community unlimited by
a physical place — right at your fingertips.
Embrace that.

8. 2. You’ll be too late if you wait
until you get to Silicon Valley
Being at the “right place at the right time” is the
wrong approach no matter which way you look at it.
That is like saying that the only business worth
starting is a unicorn business.

9. Don’t wait for Silicon Valley
While some VC firms firmly
believe in finding these one-in-a-
million opportunities, most firms
know that there’s significant
value in investing in an idea and
team and helping them become
a successful as they can be.

10. We have a long history at Avalon investing in early
stage companies with tremendous success.
In fact, Correlation Ventures recently reported that
West Coast and East Coast companies had nearly
equal returns, despite varied entry and exit
valuations.

11. East vs. West Coast Returns

12. East vs. West Coast Returns
On the East Coast, the report states:
• Lower entry valuations and less capital to get to an
exit.
• Yet lower exit values on average.
On the West Coast, there are:
• Higher entry valuations.
• Yet the exits occur on higher average valuations.
The Bottomline:
Both can be pursued with great success.

13. East vs. West Coast Returns
The Lesson:
Don’t concern yourself with being in the right place at
the right time or starting the next billion dollar business.
Instead, focus on solving a real problem right where
you are in an unorthodox way, and exiting things will
follow.
If later on a move to the West Coast (or elsewhere) is
the best way to grow your business, that will become
obvious.

14. 3. Building a company where you are
encourages talent to come to you
Too many VCs, advisors and even founders bullrush
their way into a company’s procedures, ripping a
page out of another business’ playbook.
There is nothing more harmful than this.

15. Follow Your Procedures
What works for one company
(i.e. a move) doesn’t work for
another, and too many
inexperienced voices can
cause chaos and confusion.
At the end of the day, the
founder needs to own the
decisions and be choosy about
the voices and opinions that
influence them.

16. 4. Diversity in Innovation
Confirmation bias, leading questions and cultural
assumptions are all drawbacks of a community that is
too homogenous.
It is of additional importance to know what’s going on
outside the startup bubble.

17. The VP of Devil’s Advocate
A topic recently discussed
by TechCrunch, this is an
office that requires
dissension when too many
people agree.
This typically occurs when
founders become too heads
down in the product and
remove themselves from the
real world. They fall prey to
group think.

18. Diversity in Innovation
The real question here is:
Can we truly create meaningful, game-changing
products and services if we don’t understand the real
issues and problems?

19. The Takeaway
As a bi-coastal firm, we have seen the
benefit of growing a business right
where it is.
If you start something right now and
build it where you are, you will have
taken the most important step on the
road to success.

20. Learn more!
Visit http://avalon-ventures.com/blog for more actionable advice
on early stage startups, VC funding and other entrepreneurial tips.