Ask YC: Where to startup? (If not the US, then Canada or UK?)
Given all the recent confusion and criticism of the US immigration fuc^Wpolicies, I'm wondering what everyone thinks is the best place outside the US to startup, and why?
I know there's a pretty strong startup scene now in Canada and parts of Europe but if you were starting out, which would you prefer? The following reasons are based on my VERY limited understanding and experience with both these places, so feel free to correct, etc.
Vancouver, BC
Pros: Proximity to Seattle/Silicon Valley, good startup/entrepreneurial scene
Cons: Bad weather, Bureaucracy, VCs are more risk-averse compare to SV, labor laws
London, UK
Pros: Burgeoning startup scene, situated mid-way between continental US and Europe (not sure why this is a pro), tech friendly VCs
Cons: Bad weather, labor laws, expensive (!!)
Any other places to consider?
62 comments
[ 3.3 ms ] story [ 80.3 ms ] threadPros: No work visa required. Affordable lifestyle (eating out, tango clubs, outdoor events, music). Cost of living fairly low ($10k/yr reasonable living burn rate), Buenos Aires one of the world's largest metropolitan areas. Burgeoning expatriate population (pro or con, depending).
Cons: Distance from family and friends (but some have said they'd love to visit!). Distance from established networks. Virtual business dealings. You need to learn another language to effectively be part of the community (not a programming one, a real language, Spanish and maybe their local hybrid).
If you want a economically more active country, you might consider Chile too, but I don't know anything about visas there.
But to support the topic, here's some cities in eastern Canada where I think the startup culture is growing/swell:
- Toronto, Ontario
Pros: Great community, lots of get togethers and Barcamps. Good overall scene
Cons: Crappy weather, rent and space costs are high.
- Waterloo, Ontario
Pros: Good community (Been to several Startup meets), a lot of younger people (It's a town with two major Universities in it plus a college) and a lot of cool more tech-oriented startups coming out of it. Cost of living is pretty cheap, nice small town. Lots of VC's in the area from what I've seen
Cons: Perhaps a bit TOO small of a town (Only 90,000 people)
- Montreal, Ontario
Pros: Great european culture in the city itself. Awesome startup scene with lots of get togethers. Great technology and apps coming out of it already. Lots of people deeming Montreal the "Silicon Valley of Canada" (And yes, I know it can't compare AT ALL). Pretty cheap considering how big it is
Cons: The city itself may not be for some people. Very busy.
Hope that helps. Go Canada startups! :-)
And hey, French isn't too hard to learn :)
I don't know enough about Vancouver's scene to know the differences that way.
VC's? Who cares? If you reach the size to start looking for VC then move to another city if yoi think it's so important.
On that note, I wouldn't mind meeting up with smart folks to talk shop - any suggestions? Are the Barcamps good?
Pros: We're in Canada for one, low cost of living (compared to anywhere in North America), great people, central time zone (only a couple hours off either coast), and a growing startup scene (www.manitobanewmedia.com)
Cons: Pretty cold in the winter (not that much worse than elsewhere in Canada though, I'm from Windsor, Ontario and at least it's a dry cold here!). Not many startup-minded people. The scene here is really small still, and it's tough to find coding talent here in general, and even harder to find ones who would work well in a startup.
Winnipeg is a great city for the arts as well, with some really cool stuff going on in music, film, etc. I find it a creatively inspiring city with a unique culture compared to the rest of Canada and the US. So I may not have the same volume of geek surrounding me ;), but Winnipeg provides creative influences of a different sort which I can see have definitely influenced some of my business ideas in a good way.
Go Canada! :)
http://telegraph.decenturl.com/non-domicile-tax-charge
All in all, not a bad place to live and do business but it might get worse, not better, for a few years.
Yeah, I think the Valley has a certain magic to it, but if you're outside of there, and have no plans to move, it doesn't really matter where you end up.
I've got a friend that moved to Panama (not to do a startup, but to work remotely). He loves it because his cost of living is low, it's got great infrastructure and a very nice climate.
;-)
This site will provide all the information you need: http://corporationscanada.ic.gc.ca/epic/site/cd-dgc.nsf/Intr...
Annual corporate paperwork takes me just a few minutes each year (all done online) and taxes are likewise easy to put together. Any questions I've had about the company, taxes, etc. were quickly answered either through the Corporations Canada web site or after a brief e-mail dashed off to their contact e-mail address.
As a sole founder of a software startup, I really couldn't be happier at my (by accident of birth) choice of nation. I've been able to just focus on building a business and quickly deal with the legal and tax stuff as minimally needed.
I'm thinking about going there.
There's a lot of copying of the American tech market, retargeted towards a German market. That makes some investors here a bit conservative since "the proven model" is so unambitious. But there are VCs and Angels here in town and quite a few startups. Living is freakishly cheap for a European metropolis and in general it's a very attractive place to live.
Here's a map of startups registered on Deutsche Startups:
http://www.deutsche-startups.de/2007/11/29/berlin-ist-die-st...
Bureaucracy is not a problem. I'm not sure what you mean by that.
There is tons of government help with SRED, IRAP, the Renaissance Fund, and Telefilm New Media Fund. http://www.cra-arc.gc.ca/taxcredit/sred/menu-e.html http://irap-pari.nrc-cnrc.gc.ca/ http://www.cse.gov.bc.ca/ProgramsAndServices/BusinessService... http://www.telefilm.gc.ca/03/311.asp?fond_id=3
With UBC and SFU, there is a lot of tech and business talent. Vancouver Film School and Emily Carr add to the art talent.
Since we have universal health insurance, and a fairly decent social safety net, it is actually cheaper to provide benefits to your employees in a lot of cases.
Vancouver is an expensive city to live in. But definitely not as expensive as the valley.
The infrastructure is good. I can get a 50Mbps internet connection in my apartment.
The women are gorgeous and fit. Skiing, sailing, golfing, climbing, hiking amenities are close by.
Yeah, it drizzles for 4 months of the year. But you get used to it.
The VCs are very approachable. Send any of them an email with the subject header, "30 Minute, no harm, no foul meeting" and they will hear you out.
If you're trying to get from zero to fundable, check out my friends over at Bootup Labs. http://bootuplabs.com/
I personally received a handful of unsolicited phone calls from local VCs (including Growthworks and Ventures West - the one with Paul Kedrosky) asking for a meeting. All based on a couple of posts in high-profile blogs.
It does drizzle in a winter, but (a) that's actually helpful if you need to work :) (b) Whistler is just an hour away. There's also Okanagan Valley 400 km to the east, which is our smaller version of Napa Valley.
What's completely out of whack here is a real estate market. 500 sqft condo in downtown may easily cost 700k and CAD:USD is now 1:1. The correction of the market has already started, sales are slumping, inventory is spiking, but it would probably take at least a year for prices to start really falling. I'm mentioning this because this causes certain problem with rentals availability and this problem may actually worsen. Especially in Downtown. Make sure to research this subject prior to making a decision.
Another note is regarding the labor laws. BC actually has a funny law saying that if an employee owns a company share or is on an stock purchase plan - they are considered co-owners of the company and therefore are not eligible for an overtime pay. Allegedly this law was passed specifically to stimulate high-tech industry.
Lastly, if you haven't visited Vancouver before, I would strongly recommend a surveying visit. This is not a megapolis, it's not fast paced nor is it expansive. This may require adapting to.
http://www.coop.uvic.ca/assets/pdf/engrcoop/engr_prep_highte...
Way to enforce the stereo type, bro
To elaborate on SRED and IRAP: These are programs that will either offset tax on revenue, or provide direct grants for original research and development. Talking with one of the local CTOs up here, he said use of these two programs basically cut his development costs by 70 to 80% versus Silicon Valley. Basically, there's a fair amount of free government money to be had to get you going, or stretch your funding further.
I actually just returned here from Silicon Valley (lived in Mountain View for four years). There's a couple reasons I did, mostly because Silicon Valley is an echo chamber that confuses motion with progress, but also because Vancouver has a lot to offer:
1) Diverse population ethnicity: if you're thinking about going into China, India, or Europe, it helps to have a lot of local knowledge of those cultures.
2) Lots of local talent: For one, the largest Electronics Arts development center in the world. For a second, a number of "Silicon Valley" companies and thought leaders - Tim Bray (creator of XML), Flock (has a team of 20 devs on Vancouver Island), Lloyd Budd (Automattic), many others.
3) Healthy life: I lost 15 pounds in two months when I returned to Vancouver, without really changing much. The city is a walking city, so we have only used a single tank of gas in th past four months. There's lots of cheap transit.
4) Close to Silicon Valley: YVR is actually the largest airport on the west coast (not LAX). You can be in Silicon Valley in two hours. I often joked with my valley friends that I could fly to Vancouver and drive to Whistler faster than they could get to Lake Tahoe. ;-)
As for living expense - overall, it's about the same as Silicon Valley. Some stuff costs more, some stuff less. The stuff that does cost more, you usually get a lot more bang for your buck. $800K will get you a shack in Mountain View, or a brand new modern apartment in downtown Vancouver in the heart of the action.
I actually gained 15 kilos in a year after moving here from another country.
> The city is a walking city,
No, of course it's not. Except for some parts of the Downtown and a couple of other (smallish) areas. But restricting your life to just these areas is not really an option on average.
> so we have only used a single tank of gas in th past four months.
I am filling up every few days even though I telecommute and don't drive to/from work every day. The city of course is not a huge metropolis, there's a bit over 1 mil people here. But only a very small fraction of population can actually live comfortably without a car, and even between these people this lifestyle choice still does not really appeal to that many.
> There's lots of cheap transit.
$5 a pop hardly qualifies as a cheap transit.
What it comes down to is -will you actually bring this idea into a reality-?
Get it made. Get it out. Then move if the need arises.
I can't imagine throwing everything for my startup, I already left behind my friend, familly and my ex-girlfriend, I won't kill my way of living standard too. I suppose it is legitimate for other people to seek a place on other criteria like where I find VCs or other people like me or mountain, or night clubs etc. and do their venture for a living.
Oh! And thanks for posting this question. I too was thinking along similar lines, and this answered some.
Pros: Modern city, great public transportation, access to China, low taxes, cheap and easy to setup business
Cons: Very small (but growing!) tech sector, limited and competitive market for local skilled employees, few tech VCs, cost of living can be (but doesn't have to be) expensive.
I'd love to hear from anyone interested in the Hong Kong startup scene. (farra-NOSPAM at apache dot org)
I think you can get your permanent resident status in both countries in < 2 years, whereas in the US it could take anywhere from 2-8 years depending on where you're from (really bad if you're Indian/Chinese) and what phase the moon is in :)
On this basis the UK is far from ideal - it's an expensive country where the $ doesn't get you far. For this reason the talent in London goes into banking, law and medicine, where the fat salaries are.
Tiger economies like Hong Kong, South Korea, Taiwan and Israel are much better suited - they offer advanced tech infrastructure, but a much lower cost of living. In Israel for example, the talented head for tech in their droves, since it's the best paying sector in the economy.