[patio11]

I have a new appreciation for the advantages of being in a big city since moving to Tokyo recently. That said, my while I'm an occasional visitor in Silicon Valley I hold a passport from Bootstrapistan, and most of its population resides in the capital city of A Small Town In The Middle of Nowhere. [+]

A representative sampling of locations of the "head office" from small software businesses that I'm socially close to: Ogaki, Philadelphia, "way in the boonies in West Virginia", "way in the boonies in Idaho", "way in the boonies in Florida", Nuremberg, a small town in Italy whose name I am blanking on, etc etc.

There exist plenty of happy software companies in the big metropolitan areas -- and God bless them -- but they aren't the whole of the solution space.

[+] Why? Interesting question. Some days I think this is just a pure coincidence and some days I think that the low implied burn rate for the founders and generally low opportunity costs makes it easier for the business to hit both pro-forma profitability and "successfully outcompetes best available alternatives on the local labor market" profitability. Bootstrapped businesses can, of course, pay for an apartment in the Mission and exceed a Google PM's salary in Mountain View, but those are much harder bars to hit than "beats the snot out of any job available in Ogaki."

[toomuchtodo]

> Why? Interesting question. Some days I think this is just a pure coincidence and some days I think that the low implied burn rate for the founders and generally low opportunity costs makes it easier for the business to hit both pro-forma profitability and "successfully outcompetes best available alternatives on the local labor market" profitability.

I've always thought that when I was ready to bootstrap my own startup, I'd do it from a rural farm property. You can fly to meet whomever you need to face to face for networking, and with extremely low costs of living, your run rate is close (but not quite) to zero.

Thanks for confirming my thought!

[davidw]

Small town in Italy? If you're talking about Balsamiq and Peldi, near as I can tell, he/they are in Bologna:

http://en.wikipedia.org/wiki/Bologna

I suppose that compared to Tokyo, most anything could be considered a small town, but in Italy, Bologna isn't.

Quibbling about details aside, I think your point is a good one, although I also believe there are definitely two sides to it. The case made in this book is convincing that cities are a lot better for the sort of "spontaneous idea contamination" that can lead to big things:

http://www.amazon.com/The-Geography-Jobs-Enrico-Moretti/dp/0...

Things get even more complicated when families come into the picture: a beach town in Morocco is not my own idea of the place I'd like to live with mine, although I certainly wouldn't mind an extended vacation there.

There are a lot of things I don't care for about my hometown in Oregon (THE WEATHER!), but I do find that I'm pretty partial to the mid-sized (which for me is something like 100K-400K, depending on various factors) university town like that where I grew up. I like being able to chat with people about programming over drinks from time to time, or talk about business, or have a variety of local businesses. On the other hand, with a family and not wanting to work for a BigCo, I'm not really interested in big cities any more.

[legulere]

Nürnberg isn't that small if you count in the other directly adjacent cities (1.2 million inhabitants) or even the whole metropolitan area (3.5 million inhabitants) https://en.wikipedia.org/wiki/Nuremberg_Metropolitan_Region And you are in 1 hour 20 minutes in Munich via train.

So I would argue that this is already pretty central

[kasey_junk]

Philadelphia is also not a small town and is a short train ride to NYC and Washington D.C. I think more generally Patrick's point is that they aren't from tech hubs and that there is a reason for that.