[faizanbhat]

Staying somewhere cheap gives you a tangible advantage but also puts you at several intangible disadvantages. At my first startup in the UK, we decided to base out of Birmingham instead of London, which reduced our living expenses by 70% and allowed us to really stretch our seed funding. But we ended up having to commute to London frequently for important meetings. Also, one could argue that we might have accomplished more in less time had we had continuous access to expertise and contacts at scale. Eager to hear other thoughts and experiences.

[glynjackson]

It all depends on the type of business you are in and at what stage your company is at. I'm a freelancer but I have staff. My office is based outside the city, but all my work comes from clients in Manchester and London, UK. The major cities are where the opportunities, networking and money comes from. My sacrifice for cheaper living means higher travel costs, longer work hours and in some cases less credibility. For myself, the offset of living in a low crime area with better schools works for me. But, I can understand why startups decide to work in expensive areas. Wealth breeds wealth.

[sliverstorm]

Well, that is naturally going to depend on the balance of work you need to do. If you have 12 months of nose-to-the-grindstone product development ahead of you, social connections are of less value. But if you are still spec'ing your product, or doing testing in focus groups, or other such things you'll benefit from those readily available connections...

Maybe I'm dreaming of having a large lab in the countryside, and a tiny office in the city.