[prgmatic]

Even if you do need to raise money, why is it a necessity to run your company out of the same city that your investors are in?

I've never had to personally raise money for a startup, but I see a lot of the face-to-face meetings starting off as warm email/phone intros. Even if you have to constantly travel to NY/CA/* to meet prospective investors isn't it still a better value to run a business somewhere with a low cost of living?

[BinaryIdiot]

> Even if you do need to raise money, why is it a necessity to run your company out of the same city that your investors are in?

It's almost never necessary but try telling an investor that. The amount of investors that said no to the start-up I'm currently working at, simply because it was on the East coast (that was literally the only reason given), was simply astonishing. In a world where you can be anywhere in essentially, physically, in less than a day (typically hours domestically) or instantly digitally technology investors would stick their noses up due to physical location.

I love SF but it just didn't make sense at the time and it's still insanely expensive there!

[VLM]

> "digitally technology investors would stick their noses up due to physical location."

Either they're correct, although there seems to be no logical reason why or any sane rationalization for it, or they're leaving great piles of money on the table for more open minded investors to snatch up, or they're not really in it for the money (retirement hobby, its for social signalling, etc).

[pesenti]

You don't. But investors tend to invest a big chunk of their money locally (they don't like to travel for board meetings...)

[tim333]

I can see that. Imagine you're someone like Sequoia with "1,156 Investments in 664 Companies" according to crunchbase. It would do your head in flying all over the country to see them all.

Maybe the answer is to come to where the money is for raising and then set an office back home.

[x0x0]

Part of what an investor provides is a network. That network tends to be where the investor is.