[sayemm]

I think this all depends if you're really a "startup" or not. As per Paul Graham's definition: http://paulgraham.com/growth.html. Just because you're starting something up doesn't mean you're really swinging for the fences for a big home run. But if you are, your survival depends on deal-making and hardcore talent, so you're at a huge disadvantage by not being in a major tech hub.

But if you're focused on building a 7 or low 8-figure business, bootstrapped, and self-funded, and your goal is financial independence/freedom instead of "changing the world", totally agree, starting up outside of SF is a great way to build up and earn those first stripes.

I live in San Diego and there are lots of internet millionaires here: http://helenchangwriter.com/2009/11/20/millionaire-internet-...

[parennoob]

Wow, this comment really stopped and made me think. I honestly used to think "startup" was used for any new business with an unusual, efficient way of doing business.

Now that I know how HN people define it, I guess my inclinations are way more towards small business than startup.

[josephjrobison]

Agreed that the word startup is highly overused to apply to everything from Pinterest to a new marketing company in town - small business is what usually applies to companies not swinging for the fences trying to quickly acquire millions of users.