[nostrademons]

> Intuitively it makes sense: I can't imagine starting a Foursquare in San Jose (there isn't a critical mass of people -- not all of them geeks -- cloistered around any given landmark to gain sufficient traction).

It's not uncommon for a startup's initial userbase to be geographically far removed from the company's headquarters. Facebook's was in the Ivy & NESCAC colleges in New England even after the company moved to Palo Alto. AirBnB's was in NYC. Twitter, I've heard, took off in Austin after SxSW. Orkut got Brazil despite originating in Mountain View. WhatsApp first took off in the Ukraine and then India, also despite being based in Mountain View.

I don't know why this is - intuitively, I'd expect it to be where the founders are, because that's who they can directly talk to. But the data doesn't seem to bear that out. Maybe it's because of random chance - if you model a successful startup as a cluster of users who happen to have an unfulfilled need and an entrepreneur who happens to stumble upon the solution to that unfulfilled need, then it makes sense that many initial userbases will be geographically separated from the company simply because there are more people far away from you than people close to you.