I believe that what you are saying is valid 100% for the “average” product. That said, we only have one alternative: build amazing products.

I agree with you that there is a unique culture and excitement in the valley. The ability to collaborate and learn from like minded people is extremely critical, but although this is easier to do there, it most certainly can be done from afar. Keeping abreast of the latest ideas and collaborating with like minded people is just a few clicks away with blogs, twitter, skype and the like. Wanting to live in the culture of the valley and having access to it are two different things.

The second part of your location problem, that it’s easier to succeed in the valley because of access to media and funding, I disagree with. There are a million and one startups chasing the same media and funding sources there. You might actually have a better chance of success in a place with less competition, a place that has fewer players chasing the same funding and media sources.

The funding infrastructure is rapidly maturing in Europe, from early stage angle funding to late stage VC funding. In fact the European funding community is anxious to have success similar to their American counterparts and are sometimes more willing to fund as they search for their own FaceBook, Twitter, or maybe even their own Google.

There are already some viable examples of this success in Europe, from Skype, Amiando, Qype and many others. The cream will always find it’s way up.

Bear in mind that you are in two of the most competitive fields, no matter where you are located in the world. Both the Web Development and the Web Project Management field have key established players, it is super competitive and there is a lot of noise in those areas. Successfully entering a field with big incumbents is always a huge challenge, just ask Microsoft about the search business.

Someone may want the culture of the valley, but it is never a prerequisite for success.

We’re not in the internet, we are HERE :P

Location defines us to those who don’t know us, what we are and our raw potential.
Location may dictate whether we are or even exist.
Location sets us closer or farther from those we aim to reach and those who talk about what we do.

In the end, what we do is what really matters, though the time it takes to make our voice heard to those far way, may be too long …

Over here, we’ll keep on doing, we’ll try everything to be here when they hear and dig us ;)

Great post. I generally agree with you. However, I work everyday to contradict your conclusions. I’m managing a small business incubator in the north of Portugal (Alto Minho), and in spite of all the adversities you can imagine, I BELIEVE it’s possible to develop innovative and sustainable startups in less developed regions.

Of course, I’m not thinking in Google or companies like that, but there are opportunities for being innovative, global and competitive in this areas too.

A few days ago, I was contacted by a small producer of bread in our region, because he needed some funds to its micro company. When I asked why he needed the funds, he told me that he was developing a R&D project with the Oporto University, concerning the development of some enzyms for baking bread. I was amazed with that. But then, he told me that his bread is now on the Slow Food International catalogue as a speciality and a delicatessen product, and he’s selling the bread to the Meridien and Sheraton hotels in Oporto an Lisbon.

So, this is a small example that made me think about the relevance of location, and the difficulties I have to overcome everyday for not having the necessary “entrepreneurial ecosystem” in my region.

Well, … I think that even in less developed regions, you can develop innovative and global startups. You have to Believe and be the change …

I’de like very much to contact you to further discuss this subject.

Regards,
Paulo Alves

We’ll be seeing each other around, I’m pretty sure :-)

Hey, i do the same for some of my service providers.