Successful Startups Put Some Distance Between Their HQ and Their VCs

New study shows that startups located far away from their venture investors’ offices actually perform better than those headquartered closer to the mother ship.

The conventional wisdom used to be that technology startups should be located as close to their venture investors’ main offices as possible. That way, it’s easier to call on your venture partners’ experience and networks, get them to attend your board meetings, and so forth.

But the conventional wisdom may be dead wrong. Private equity industry news site PE Hub is calling attention today to a new study showing that startups located far away from their venture investors’ offices actually perform better than those headquartered closer to the mother ship. That finding may come as solace to entrepreneurs in cities such as San Diego and Seattle that are slightly off the beaten venture path, or that are losing homegrown firms.

Wade Roush

Full Story: http://www.xconomy.com/national/2009/06/22/successful-startups-put-some-distance-between-their-hq-and-their-vcs/