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A comment on The Shame of Palo Alto: An Interview with Kate Downing on Affordable Housing. Parent comment

Re:The Shame of Palo Alto: An Interview with Kate Downing on... by twblalock on Sunday August 14, 2016 @11:50PM (#12288528)
> Your argument about investors and quality developers only being in SFBA is a strawman.

That was not my argument. I said most, or "almost all," not all. And that's true! Even the NYC startups have to come to the Bay Area to meet with VCs.

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Re:The Shame of Palo Alto: An Interview with Kate Downing on... by Retric on Monday August 15, 2016 @12:00AM (#12288563)
Having a founder fly out every week is still cheaper than building a startup in the Bay Area as soon as you leave the 3 people in one room stage.

The reason why it happens is the same reason why VC have historicly had negative returns; VC's as an industry make most of their money by convincing investors to part with there money not from actual returns. As such they like having a dog and pony show in the area while they try and fleece more people.

This sets up boom and bust cycles and many market distortions. As VC's still want positive returns it's just not their #1 goal.

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