Why is Silicon Valley a startup Mecca?

  • Better organised, offers a lot of opportunities and mentoring
  • Diverse environment with exposure to different groups of people
  • More tech driven and social app oriented
  • Prevailing belief is succeed or fail fast and move further

One would say that enterpreneurship is a similar phenomenon all over the globe. That’s not entirely true though. There is quite a difference between startups from Silicon Valley and the rest of the world. Watch what the experienced have to say about the distinction.

Silicon Valley as startup Mecca

There’s no denying that Silicon Valley is the centre of enterpreneurship. Startups from all over the world come here to seek investment, knowledge and experience. To Shakir Husein from IVM Capital, Silicon Valley is a Mecca for enterpreneurs. “It’s much more organised, offers a lot of opportunities and there’s a lot of mentoring going on,” Husein thinks. Although the goal to succeed is common to all startups coming to Silicon Valley, their approach differ.

Infographic - Silicon Valley
(click on the infographics to enlarge)

Non-American startups growing”

Before the “dotcom bubble” broke, most startups were coming from the US, Canada or Israel. But as the startup environment is progressing fast, so does the growth of non-american enterpreneurship. For instance Chinese companies are very strong in taking a proven idea and modifying it for their market, thus creating hugely succesful businesses. From Aubrey Wong’s perspective, German startups get their inspiration from daily life, whereas in the US they are more tech-driven and social-app oriented.

Do the homework!

A pattern can be seen when startups come to Silicon Valley. There is usually a representative seeking sales opportunities or investments, while the rest of the team stays in the home country. Hoping to make biggest impact possible they often don’t avoid basic mistakes or as Jack Katz calls it “forgetting to do the homework”, which ultimately leads to failure of their mission.

Common mistakes

Not having a clear strategy for their stay in Silicon Valley is one of the errors. Enterpreneurs come and expect to fulfill their hopes in a few months which is usually not the case. They also often stay only with their own community which gives them only limited overall view and insight. And one of the most crucial mistakes is a lack of knowledge. Knowledge about VC’s, their target market or competition. The good news is that even though they make mistakes, non-american startups are catching up fast. After all the deciding aspect is their passion and drive for sucess.

DNA of a startup

People from Europe and Asia frequently choose to start their own business over starting a career in large companies. And no matter where they come from, the DNA of a startup stays the same: bursting out new ideas in an informal group of people, then suceed or fail fast and move to the next one. Enterpreneurs incoming to Silicon Valley are dreamers. And only the strong ones are able to overcome the challenges and suceed.

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