How to Make Pittsburgh a Startup Hub
paulgraham.com
paulgraham.com
When I moved there the food scene was nonexistent and people in the US still perceived Pittsburgh as a bad place to be (e.g., a lady I met in CA responded with "Oh I am so sorry" when I told her I was living in Pittsburgh). CMU also didn't really understand startups - we were the first company to ever do something with a technology that CMU released to the founders.
But it was also a time where you could hire CMU CS grads for $30K/year and rent an office for 30 people for less than $2K/month. And we were a big fish in a small pond so we got a lot of local press and a first cut at the local tech talent (one of our first hire ended up becoming co-founder of Tumblr!)
After the exit I tried to get involved in the local scene. And while I found a lot of talent/ideas/start up to promote it was amazingly hard to attract any kind of money in the city. That convinced me that Pittsburgh would never make it as a hub and I ended moving to Manhattan last year.
Now my family (wife and 4 kids) hate me for that move - because even if you throw huge piles of money on rent it's hard to match the quality of life of Pittsburgh - and we are reconsidering that move.
Happy to answer any question about starting a company in Pittsburgh!
Honestly, I don't think it's a bad thing that people think this. The city's steadily drawing in talent yet rent/cost of living is remaining low and stable. Every once in a while I see people say "Pittsburgh's the next Portland!", but good god, I hope not. Too many people from SV have flooded into Portland and driven rent up to insane levels in just a few years while offering nothing of substantial value--Pittsburgh doesn't need the same.
Seems like an insanely cheap place to bootstrap. Get to break even far faster, etc...
If you're living in Manhattan now, you could reduce costs by over 75% by moving back and put it into the next venture instead.
Plus, the kids get the dog and a yard.
But if I had to do it again, especially in the current VC environment, I would raise money. It can be slow and tedious to bootstrap (took us 12 years to grow to 125 people and exit) and a lot of good startups in Pittsburgh seem eternally stuck in the seed stage.
I've never had to personally raise money for a startup, but I see a lot of the face-to-face meetings starting off as warm email/phone intros. Even if you have to constantly travel to NY/CA/* to meet prospective investors isn't it still a better value to run a business somewhere with a low cost of living?
Maybe the answer is to come to where the money is for raising and then set an office back home.
It's almost never necessary but try telling an investor that. The amount of investors that said no to the start-up I'm currently working at, simply because it was on the East coast (that was literally the only reason given), was simply astonishing. In a world where you can be anywhere in essentially, physically, in less than a day (typically hours domestically) or instantly digitally technology investors would stick their noses up due to physical location.
I love SF but it just didn't make sense at the time and it's still insanely expensive there!
Either they're correct, although there seems to be no logical reason why or any sane rationalization for it, or they're leaving great piles of money on the table for more open minded investors to snatch up, or they're not really in it for the money (retirement hobby, its for social signalling, etc).
But here's what's hilariously ironic for OP: After achieving that mystical billionaire status, what would he likely end up doing?
Serious chance he buys a plot of land outside of Pittsburgh with a dog and yard for his kids and now grandkids. All things he can already afford to do right now!!
Call me old fashioned, but I just don't get the point of that exercise.
They still do.
I'm originally from the area and when I mention this everyone thinks I come from either a Deliverance-like backwoods or a bombed-out Detroit-style factory town.
No one takes me seriously when I call it The Paris of Appalachia.
probably why steel found its way there too. plenty of fuel to make steel.
the people are friendly too. i had no idea what to expect but everyone was really friendly and open minded.
It's a beautiful town.
This has been my perception of the city until recently. I grew up in Florida, and my perception of the city had been formed mostly/entirely by the Pittsburgh Steelers. The team (and city by association) has a very hard-nosed, blue collar kind of vibe... similar to how I would think of the Baltimore Ravens.
I've recently moved to Chicago and heard mostly good things about Pittsburgh. As I've gotten more into baseball, the Pittsburgh Pirates (and their ballpark) have also changed my perception of the city. The Pirates are a great team and you never hear of any off-the-field issues from that team. PNC Park is also top 5 on my list of parks I'd like to go to.
It's naive that my perception of the city was/is based mainly on sports, but I've definitely read and heard lots of great things about the city, especially since moving up north to Chicago.
True. Where else could a player like Heath Miller become the fan favorite?
> It's naive that my perception of the city was/is based mainly on sports
Well then, the Steelers' now high-flying offense and the Bucs snapping their 20 season losing streak could be a sign of things to come for the city.
It is sacrilege to compare or equate the Steelers with the Ravens. You'd be thrown out of this town so fast.
Yeah, it sure is annoying when people mindlessly insult your city....
It's interesting that CMU just isn't enough to help the scene. Silicon Valley and Manhattan are hard to beat for access to money, personal ambition and risk appetite.
I hear you on the cost of NYC. It's a city that sucks every dollar out of bankers and hedge fund traders - everyone else can only just run the treadmill.
Boom. A few thousand people vaporized, James Gosling among them.
https://en.wikipedia.org/wiki/Gosling_Emacs
https://en.wikipedia.org/wiki/PERQ
etc, etc.
It's costs.
Commercial rents have skyrocketed. Moreover, residential rents have skyrocketed to the point where few people in the service industry can afford to live in SF at market rates. Even if you can find a space, how are you going to staff it? Who's willing to commute in from Oakland (which is getting expensive too) for a low wage job with grueling hours?
Nopa, one of the most successful SF restaurants in the past 10 years, is posting job ads for cooks on their menus now.
This isn't because of a slow permit process. Nopa hasn't applied for a permit in years. It's a result of the macroeconomic effects of a tech boom. So while I'm very happy to see PG highlight macroeconomic factors that foster economic growth in cities, I see a missed opportunity to fully address their complex effects.
This is probably because this issue has been politicized here in SF, with the tech industry often lambasted for "destroying" the city (this comes from a lot of the people getting pushed out), so tech folks often get hyperdefensive and contort themselves trying to point fingers elsewhere. I think that's what's happened here with PG trying to blame the government's permitting process.
But clearly if we want to continue making SF an attractive startup hub, we need to help "little restaurants and cafes" continue to open and operate. And the elephant in the room there is quite simply the high rents and high cost of living for workers in the service industry, driven by a huge influx of wealthier residents competing for space. You want a startup hub, you need city policies that manage that growth.
Maybe it shouldn't be such a low wage job, if [good?] talent is in short supply?
Just a thought.
I for one would be happy to pay higher prices, if it meant we could avoid the whole 20% restaurant subsidy (tips) song and dance. Charge me a fair price and I'll pay you a fair price. There's no need for the whole "And oh yeah, we don't pay our staff enough so you're a bad person if you don't pay extra".
It doesn't sound like you're actually offering to pay higher prices. You just want tipping built into the base price. There are restaurants experimenting with this, but it generally doesn't make them more money. [2]
[1] http://www.sfchronicle.com/restaurants/article/Why-is-it-so-...
[2] http://sf.eater.com/2015/10/16/9557877/tipping-restaurants-s...
The last time this city was on discount was probably the late 1980s, when SOMA was a wasteland and everyone wanted to live in the suburbs. And surprise surprise...along came the first dot-com boom. All of those (comparatively) cheap spaces where creative kids were having raves and making art became the birthplace of the modern web. Creativity happens in marginal spaces.
I was actually surprised that pg kept emphasizing the need for constraints on development in this essay ("The empirical evidence suggests you cannot be too strict about historic preservation. The tougher cities are about it, the better they seem to do.") The conventional wisdom around here is that we must refer to this kind of thinking as "NIMBYism", and condemn it as backwards-thinking. "Obviously," says the technorati, "we should be knocking those tiny old buildings down and replacing them with skyscrapers!"
But he's right. San Francisco was once a cheap, pleasant place to live, precisely because of those sorts of constraints, coupled with demographic trends. But it's at a different point in the development curve today. It isn't for scrappy, poor innovators anymore. It's for ambitious, get-rich-quick types who will tolerate paying $4,000 a month for an apartment to be part of the scene. And as soon as the scene moves somewhere else, those people will be gone, too.
That said, it doesn't change my point: to change the density of these places, you have to buy out a bunch of people who know exactly what their land is worth if it's zoned for higher density. Many of them are actually betting on that windfall. There is no equivalent in SF to the vast tracts of undeveloped land in, say, Texas.
And how to fix it? It takes a long time and a lot of investment to improve public transport, but it's challenging when the need for it is driven by short-term boom-bust tech "bubble" cycles. Makes it harder for the city to invest when demand might go poof in a year.
Paris: density 55,673/mi^2
SF: density 17,246/mi^2
(source: wikipedia)
All of NYC - 28,053/mi^2 Manhattan alone - 72,033/mi^2 London - 13,410/mi^2
It takes decades as an artifact of governmental processes. There's no necessary reason it should take decades.
That kind of thing is good for preserving historic buildings too - the blocks are all in nondescript areas 1-4 miles from the center.
So, yes, SF is a small space but it is far from being efficiently (or fully) developed and I think the SF Planning Department and other bureaucracies are partially to blame.
[1] http://missionlocal.org/2012/07/el-chico-produce-store-to-op...
For example, the reason that space at 18th and Mission was vacant is right there in the article you linked -- the landlord pushed out the previous tenant, and turning it into a grocery store required extensive renovation. It's not as if the space was sitting empty because nobody had a use for it:
"So when the 99-cent store closed — because of high rent, according to neighboring businesses — and the vacant building went on the market in May 2010, he seized the opportunity and bought it two months later."
But yeah, it would have been nice if the new owner allowed someone else use the space while waiting for his redevelopment plans to go through, instead of letting squatters turn it into a drug house.
[1]http://www.auto-parker.com/productDetail.aspx?Id=93&Name=PUZ...
12 SFH homes on a block can be purchased for $30 million, have 400 unit buildings built on them and make far more than that selling it off. Then take the massive increase in property tax revenue and use it to fund an expanded rail system with right of way. But they can't do it effectively because of the law.
Build 250 of those 400 unit buildings and you will have filled the 100'000 unit backlog. 250. You can easily fit them all 0.5 miles from bart and muni tunnel stations. Everyone knows the solution, the planning department and SF NIMBYs don't want to happen, and they fight it hard.
250 high rises wont even make SF approach hong kong or manhattan levels. Not even 1000 of them. SF and it's people has it's head so far up it's ass it's comical.
So. First off, I nearly cried reading this headline, and did tear up reading it. So whether or not he reads this, thanks, Paul.
Second. To the hard work of it all. I agree with every point he made, with the caveat that Pittsburgh needs to be careful with the historic preservation aspect of things: they vascillate between 'hey let's forget all of our history and blow this place up' to 'we must preserve every nook and cranny exactly as it was, even though it's detrimental towards progress'.
We could also stand to improve tax policy (lower them, significantly), and get our major employers here to knock it off with their ridiculous IP agreements. Also, I'd love it if our politicians stopped directly trying to ape Silicon Valley (or New York, or perhaps most ridiculous, the Paris of Appalachia). Let's be Pittsburgh.
Here's the thing that perhaps Paul missed when he was here, and perhaps others who aren't here can't see: I feel we've reached a critical mass of people who just DGAF (in a good way), because the opportunity costs of testing out your vision here are so low. By that, I mean that you can try out your weird (read: innovative) vision of the future, and no one bats an eye. On top of that, if you are producing a signal, it's much easier to cut through noise here. I spent a fair amount of time interviewing in SF for startup gigs, and it's not a good value proposition compared to here, to me. Finally, while the investment scene is terrible, that can be very beneficial to the right founder, because obviously one will retain more for themselves, and one don't NEED very much capital to get started in Pittsburgh. I bought my first house for $80,000 in 2013. 4/2, hardwood throughout, 1944 brick single family, 2 car garage, yard, granite, stainless, wine fridge, etc, in a good neighborhood. It's that cheap here. Anecdotal, but if you're smart with your money here, you can build your own runway.
All of that said, I'm hoping it happens. More than that, I'll work for it to happen. Onwards and upwards, fellow Yinzers. And Let's Go Bucs.
I live 20 minutes from Downtown and I bought my house for $74,900 in 2008. 3/2, two car garage and driveway sitting on about 1/8 of an acre.
It blows my mind when I hear how much money people are paying for housing in bigger cities. The salary would need to be significantly higher to make it worth my while to move to a place like SF or NYC to take a job.
Additionally, this area is fairly centrist politically. Sure, it's Democrat heavy but there are a lot of conservative, blue collar Democrats that balance out the urban intellectual Democrats and we have a small but intense Republican population so we never go too far in any direction. That's an intangible thing that is very important to me.
The low cost of living, the low housing costs, the abundance of college educated professionals and the variety of experiences around would make this place attractive to all kinds of people. It could become a startup hub. I'm not sure I want to see that but I'm also not blindly opposed.
I spent three months crossing the US in 2009 as a tourist. I had developed a light-hearted measure of the patriotism of an area by how many US flags were seen in suburban front yards. Before I visited Pittsburgh, I had rated '1 house in 4-5 with a flag' as a very patriotic area on this scale. Then I hit Pittsburgh, and the area where my hotel was had one house in 4-5 that didn't have a little US flag planted somewhere in the front yard. Even the local cemetery was bestrewn with Old Glory all over the place... :)
Crazy?
I don't even like going into the city for work.
What's Pennsylvania like for non-competes? I often think what a state or province could do for startups would be to shift to California style non-competes.
I wonder how much innovation here is stifled because there are still only a handful of major employers, and all of them have blanket IP agreements. Frankly, if I was running UPMC, PNC, or Highmark, I'd set up a VC arm and encourage any employee with a good idea (related to the industry) to start a company with seed capital from the VC arm. UPMC is KIND OF doing this (I work for them now), but they're not quite there yet, and it doesn't seem like current employees can swing over there to start their own company easily. Still, I think they're headed down the right path.
Code & Supply (http://codeandsupply.co) is growing very quickly. It is just more than two years old and has nearly 2,200 members of its Meetup group. It holds 6-10 meetups per month, ranging from language talks to toolkits, WiFi, mental health, design, career management, and more.
C&S is hosting Abstractions (http://abstractions.io), probably the largest ever software conference in Pittsburgh. It's in August and will likely sell out of its 1,500 tickets at the current rate (40% sold as of this writing). We've got big names speaking, like Stallman, Zeldman, Sandi Metz, Scott Hanselman, Mike Montiero, Raffi Krikorian, Mitchell Hashimoto, Joe Armstrong, Larry Wall, Allison Randal, Aaron Patterson, Jono Bacon, Kelsey Hightower, and lots more. The full lineup will be announced in May.
Disclosure: I am an organizer of both.
There are lots of other meetups that are big, too. PGH Python just merged into C&S. The PGH FP meetup is growing quickly, too. Pittsburgh hosted Midwest UX last year and Pittsburgh Web Design Day is a pretty big event.
TL;DR the Pittsburgh software community is booming.
- Highest growth rate in the nation (especially for 18 - 30 years old), after Houston, which is down now due to the oil industry, placing Dallas at #1
- Highest spending on food and alcohol at restaurants - http://bizbeatblog.dallasnews.com/2015/09/dallas-fort-worth-...
- One of the most affordable places to live in the U.S.
- Large number of top tier universities within 3 hours (Univ of Texas, Baylor, TCU, SMU, UNT, Texas A&M, UTD, UTA)
- Massive amount of wealth/wealthy investors, who, are starting to put their wealth into more and more seed start-ups
My point is, many cities all fit the same criteria as he listed. But until the people IN those communities move to make it happen, it won't. In the last 3 years, I've seen a magnitude increase in Start-up/entrepreneur activity happening in Dallas. And I believe much of the criteria PG said is right and a good part of the reason, but those things won't just "make" it happen.
Note: I'm not knocking on Christians..I am one myself. Just saying a lot of the people out there are not as accepting. However I have found a larger percentage of "nicer" people here than in other places I've lived. "nicer" is hard to define in words though...so I'll leave it at that.
If by open minded we mean writing off 26 million people because they live in a geographical area that's different than yours (and perhaps hold religious views, "quelle horreur!"). But what you really mean by "open minded" is "votes for Democratic politicians". And lucky for you, Dallas (just like all of those other bastions of conservativism, San Antonio and Houston) has a mayor who is a member of the Democratic party!
Funny, huh, stereotypes aren't always accurate.
For god's sake, they passed a law prohibiting discrimination based on gender identity/sexual orientation in 2002. That's 10 years before Barack Obama realized that same-sex marriage was a fundamental American right.
I mean..if you ask half the people in Europe they still think we ride horses everywhere...
I've actually lived in Boulder, CO. and I think Austin is more "hippy" than Boulder...I know...crazy but that was my experience. I'd say Dallas is pretty well balanced as far as number of republicans/democrats.
I'm sure the evil bigots living somewhere, but I don't know where.
(Speaking as an Atlantan -- we have the exact same problem.)
Downtown seems dreary and dismal; it has the potential to be exciting, it's quite a beautiful area — but so few people! Scattered coffee shops and restaurants, but I felt like I could've been literally anywhere else.
Bingo! That applies to 90% of Atlanta, as well, despite some notable exceptions.
I'm not sure what your definition of "rural" is... but the suburbs of Dallas (Plano, Irving, Mckinney, Richardson) are most definitely not rural by any definition. Suburbs...yes...I'd even say dense suburbs at that.
Now, Downtown Atlanta is often crowded, but it's basically a giant convention center, so it depends on when there are conventions. There are approximately 10,000 hotel rooms within a few blocks of each other, so when it gets crowded it becomes very crowded .
Dallas is a little different in that its suburbs are fairly dense, but you have to go there, and...car again. And, for me, life is way, way nicer without a car.
For most people, the biggest problem would be commuting to work. Since I'm self-employed and can choose where to have an office (yes, I do have one), I have one within walking range.
I really like the city, but I think any benefits I'd get from a cheaper area (because Boston is not cheap) would be drowned out by the need for a car or the expenses from not having one. MARTA's pretty nice though.
I pinged you on Twitter, btw.
http://usa.streetsblog.org/2014/03/20/parking-madness-matchu...
Of course, the bay is no exception. Here's the "city" of San Jose, and an explanation of how it might be fixed.
http://usa.streetsblog.org/category/special-reports/parking-...
Streetsblog's Parking Madness is an interesting tournament they run discussing cities that have been destroyed by parking craters. I know a lot of people disagree with me but I really think that when you have these levels of parking the city itself is gone, destroyed and replaced by suburb, or maybe some other human/auto organizational structure we need a new word for.
> Pittsburgh is fortunate in being a pre-car city. It's not too spread out. Because those 25 to 29 year olds do not like driving. They prefer walking, or bicycling, or taking public transport... Cities where you can get around without driving are just better period.
> Pittsburgh has something Portland lacks: a first-rate research university. CMU plus little cafes means you have more than hipsters drinking lattes. It means you have hipsters drinking lattes while talking about distributed systems. Now you're getting really close to San Francisco.
> The culture of Pittsburgh is another of its strengths. It seems like a city has to be very socially liberal to be a startup hub, and it's pretty clear why. A city has to tolerate strangeness to be a home for startups, because startups are so strange.
EDIT: map of red/blue counties in Texas: http://frontburner.wpengine.netdna-cdn.com/wp-content/upload...
Also, what is your definition of a "top university"? Ivy?
Also fun fact...Dallas has the largest public transit system in the nation as far as length of track.
Great, well-known, research CS university. Think Stanford, Berkeley, etc. In Texas there's UT and to some extent Rice... neither in Dallas.
How do you mean "to some extent Rice"?
Rice is #18 in the US News ranking of top colleges in the US and has a 17% admission rate--the highest rated univ in Texas. It has a top-notch CS dept, most particularly well known for its compiler research.
Disclaimer: I did not attend Rice, but know several people who attended its CS program.
You might not, but many of the people you're trying to recruit will. I realize it may not be accurate but there's a perception that Texas is universally horrible except for Austin, at least if you're left of center or want urban living. It doesn't matter if that perception's wrong if it means you never even talk to your potential candidate to say how great Dallas is.
Also, having the most track is a dubious distinction, just as having the most miles of road would be; that makes it sounds like commutes are long too. Interestingly a lot of the earliest suburbs weren't enabled by the car but by rail; San Diego and Los Angeles both have neighborhoods (now considered pretty close-in) whose construction was really enabled by rail.
And what about the free-wheeling, non-traditional culture (embodied in the Homebrew Computing Club)?
These two factors created Silicon Valley. Federal money subsidized the semiconductor boom, which brought a lot of technical expertise to the area. Then the open-minded culture created the perfect environment for entrepreneurship.
It seems like the formula for success is: (1) Massive exogenous funding (on scale only the federal government can do) + (2) A highly open-minded culture that accepts failure as an inevitable part of creation.
Honestly, there's just not a lot of places that qualify. Pretty much all of the east coast, mid-west, and south are too conservative. And nowhere is really receiving massive loads of external funding like the Bay Area did in the 20th century.
Not much mention of government funding, but there is this:
"A city has to tolerate strangeness to be a home for startups, because startups are so strange. And you can't choose to allow just the forms of strangeness that will turn into big startups, because they're all intermingled. You have to tolerate all strangeness."
Other huge innovations first funded by DARPA: multitasking (1963), the Internet (1969), the GUI (1968), GPS (1978), self-driving cars (2004).
It's harder to see these roots now, but for a long time military-industrial competitiveness was a huge driver of advancement in the field
I think it's more accurate to say that the military (and academia) are working on technology X for at least a decade before it's mature enough to commercialize.
> Honestly, there's just not a lot of places that qualify.
I'm not so sure location has much to do with it or that there is much a location can do that would help.
But for places:
Sure, within 100 miles of the Washington Monument.
Federal spending? Awash in it. For technology? Same.
Universities? Johns Hopkins, Maryland College Park, Maryland Baltimore County, Catholic, American, Georgetown, George Mason, VPI, UVA.
VCs? There are some.
There is Boston with Harvard and MIT and no lack of Federal research spending. And lots of VCs and bigger bucks, too.
Then, sure, there is NYC:
Universities? Columbia, Rockefeller, and NYU and a new, growing tech educational center on Roosevelt Island.
VCs? Plenty of them, and bigger bucks, too.
Can make a good case for a large fraction of the college towns around major US universities, e.g., the Big Ten.
Maybe the bottleneck is elsewhere, say, finding the next Microsoft, Cisco, Oracle, Sun, Google, Facebook? If there is one and it goes through YC, then it's not in stealth anymore and, if it looks really good, can set up shop the same place as that 900 pound gorilla -- anywhere it wants to.
Net, I'm not sure location has much to do with it. And I'm not sure that the 25-29 age range PG has in mind is now the most promising. And, net, net, IMHO the bottleneck is just better ideas.
I love this. I'm in Kansas City and find myself constantly cringing at the number of projects that all try to be a silver bullet that will magically transform the startup ecosystem here or in any other midwest city. If you want to make some place a good place for startups, then you have to play the long game.
You can't be beholden to any political cycles. You can't jump on the startup bandwagon because it's suddenly fashionable. You can't run for the hills as soon as the economy takes a substantive dip.
The only answer is to put your head down and try to build whatever you can, and stick with it. If a large number of people do that, then over time, good things will happen.
I think the one thing it might have against it is a growing anti-gentrification/tech movement. It's nothing like throw-rocks-at-busses San Francisco, but you do see things like this graffiti:
And it's not just the fringe with these views, but (in my experience) reasonable people who are frustrated with rising rents and they scapegoat tech growth.
The housing market is also a little wonky. Pittsburgh is cheap on average, but it's sort of bimodal -- there are nice new shiny apartments being built, especially around Google (Bakery Square) and thereabouts, but they're going at maybe 1.5-2x the median rent. Then the rest of the apartment stock is just a little... old. I took for granted having parking and laundry and post-1950s wiring when I was on the west coast. There are a bunch of places here that haven't been renovated in 50 years.
In any case, I agree with PG that there's a certain pragmatism here and I think really great things are coming if the growth continues.
having lived in both sf and la, you really can't expect many rental places to have all 3 of these things (or even 2, really), except the newest developments. most buildings in both cities are cheap-ish mass housing built in the 40s-70s. the new stuff gets a lot of attention but is a tiny fraction of the city.
I'd still say average housing quality in both markets is much better than in Pittsburgh, at least in the neighborhoods near CMU (Squirrel Hill, Shadyside, etc). My current place was built in 1916, still has knob-and-tube wiring, and I considered it a good find. I'm moving to a 1950s building in August and I'm looking forward to having enough electrical capacity for a microwave.
All that said -- everyone should still consider moving here -- it's a beautiful city, with a lot of culture, and the housing market will eventually come to a better equilibrium!
But, eh, I didn't mean to turn this into an ad for PDX! One thing I do appreciate very much about Pittsburgh is the walkability. It's hard to beat a 45-minute walk through Schenley Park as a morning commute, at least in summer, and I have... 5?... coffeeshops and as many pizza places within a 15 minute walk. And, yes, if you're in a position to buy a house, there is a lot of character to be had.
Anyway, my views on the housing market may be slightly colored by PhD-student glasses (and the two-year west coast industry detour...). To anyone reading, do consider it here -- it's a very unique city.
- night life
- high density urban living
- progressive local governments and freedom (drug and marriage decriminalization).
- good public transportation
- access to high speed internet
- good universities
As they grow older and get married, affordable and high speed public transportation will allow them to move without causing terminal urban sprawl.
I think Atlanta or Nashville is ripe. Northeasterners can and do move to California already. Southerners are much less likely to do so imo. The rural market is grossly underserved right now. Almost none of the efforts to get people into computer science are hitting rural communities. I'd very much like to see that change.
(I grew up an hour west of Knoxville. And have family in B'ham/Tuscaloosa.)
Beyond the metro area, the rest of Georgia isn't at all.
We talk about how women make up 50% of the population and if we don't hire women then we're leaving a lot of talent on the table. Well 50% of the country is conservative and if we don't hire conservatives we're also leaving a lot of talent on the table.
Conservatives are people too. Many who are incredibly smart, talented, and hard working. They shouldn't be overlooked.
I say this as a fairly conservative person living in a very liberal city.
State politics aren't really liberal, they just almost passed an NC style 'right to discriminate' or whatever law, but were smart enough to back down over the threats of the film production companies(GA has become a major film state of late).
The city is very racially diverse, but I dunno what the social politics are really like in general(tho I think the pearl clutching about living around ~conservatives~ is a bit overblown having grown up in that area of the country(TN)).
Plus Georgia Tech is there, so lots of smart computery folks around(from all over the world) in that part of ATL society.
It's a miserable experience. You go from seeing a lot of people who look like you in the industry of your choice, to being one of a token few. Food and grocery options go from omnipresent to something you have to hunt down. The way you lead your life goes from something you take for granted to a difference that you must confront at every turn.
Good luck building the next Silicon Valley in a place that is not welcoming to multiculturalism.
Shame about their recent legislative decisions, though.
Yeah, the whole HB2 thing was something of a stain on our state (OK, we're the laughing stock of the whole damn country, fine...) but that really does not accurately reflect what life is like in the Triangle area.
The South is in dire need of at least one giant tech city. I can't be the only person who wants to stay here near family, but the lack of any world-class tech opportunities is extremely frustrating. My girlfriend doesn't understand why I keep wanting to move to the west coast — "Surely you can find a decent job somewhere in the southeast?" Yes, if "a job" is all that I'm looking for, then I can certainly find one. I think she's frustrated with my constant talk about jobs located outside of the South, but I don't really know how to explain the situation to her :/
These are huge companies with bleeding edge technology problems and solutions, that also have ample vertical mobility.
There's an issue with getting huge money still, but you can live cheap in the burbs and bootstrap to your heart's content.
If the REAL tech / hardware industry doesn't have a collapse, there will be no stopping the growth.
You're correct, but look at Detroit and look at the old steel and coal towns. There is always a collapse, and the collapses are happening in faster iterations as technology advances at a faster pace.
The startup scene might be considered burgeoning, but the tech sector in Austin as a whole is pretty well-established.
Kansas City is nice too, and Google fiber being available is a huge plus.
Obviously I'm biased since I've lived in both places.
I personally think there will be a decline in interest in traditional night life due to some neo-Luddism taking hold. We'll see more appreciation among young people for "long-form," delayed gratification pleasures like hiking and nature. So my bet is that CO will really start to take off in the next 30 years.
https://journal.dedasys.com/2015/06/18/boulder-colorado-vs-b...
Heaven forbid a bunch of new tech jobs are added to your precious town, right?
I moved to Denver in December and really like what I see. Lots of startups as well as established companies, easy to get around, and great variety between the various neighborhoods.
I would say the research triangle seems poised for something interesting, but again, kind of already expensive.
Talking in broad generalizations here but:
I feel like Portland has the creativity and culture, but not the talent and intelligence. The Research Triangle has the talent and intelligence, but not the creativity and culture.
My guess? The "next valley" will be highly decentralized and a lot of big cities will act as innovation hubs.
Oh and remember that the valley happened well before the flock of young people to SF. Lot of factors played in, including the presence of well established semiconductor companies whose employees were far from the stereotype you are describing.
Really? It seems to me like things are getting more centralized, rather than less. I recall reading (though I can't find the source right now -- on mobile; correct me if I'm wrong) that venture capital is more concentrated in the Bay Area now than it was in the dot-com boom.
I would like it if you were right, but I think you are discounting the critical factor of being able to be face-to-face with somebody. I live and work in Boston, and while it's not SF, I am within a forty-five minute public transit ride of most of my clients and almost everybody from whom I could conceive of needing a favor or an intro. Meeting a potential investor at a coffee shop because they had a few minutes and you happened to be in the area is the sort of thing you don't get with distributed communities, and as much as the I find the Valley to be personally kind of odious, that's an unmistakable advantage.
And this is a problem that technology, hype to the contrary, doesn't seem ready or able to fix. Video chat is not a solution. It may never be a solution. Being able to sit down and talk to somebody is not replaced by talking at a screen (and while I love the current crop of VR tech, I think it will be as effective as Second Life in terms of meaningful telepresence).
Right now, only NY and Chicago (edit: and Boston) have anything in the US that really can claim to be high density. Most of the other "next valley" candidates are not set up to be high density, at all. The real test is that it should be easy for a person to have all of their needs and most of their desires met, while choosing not to own a car. They should not be unreasonably burdened by choosing that.
SF is barely passing that test IMO, being a non-car owning resident here, but it's getting better. The other city where that might possible is Portland, and from what I recall of Austin (it's been a while) it's not nearly dense enough to support this.
- calm, peaceful nights
- suburban house with a yard and a dog
- a comfortable car and well-kept roads
- internet good enough to stream Netflix
- quality local universities that offer tuition scholarships
Unmarried 18-30 year olds are quite a diverse bunch.
In California, anything you do on your own time belongs to you, and the previous employer can't enforce most non-compete agreements. So you can leave and do a startup even if your old employer doesn't like it. That's an edge Silicon Valley has and no other state has had the guts to copy.
I work in Pittsburgh, and recently learned that my employer can own intellectual property that I created on my own time in my home. I was appalled.
It's not something to be appalled about. They aren't trying to be evil overlords.
Not so fast. A lot of East Coast companies aggressively enforce contract provisions, EMC being one of the worst.
If it's in your contract, and it's not illegal in that jurisdiction, you should be very concerned.
Most companies require board-level approval to change a contract, and you will usually be told, "I want you to leave the premises now."
This X100. Add in the fact that Stanford makes it easy for faculty to weave in and out of industry, and those facts explain a lot.
Stanford didn't always pull in a lot of government research money. See http://alumni.stanford.edu/get/page/magazine/article/?articl...
It took a long time for Sili Vally to become Sili Valley, and a confluence of factors.
CMU has grant money coming in. But CMU seems to pride itself on being Scottishly tight-fisted with how it treats the IP of faculty and students. And tight-fisted about everything else -- About a year ago I attended accepted student's day with my daughter (accepted to both Carnegie's College of Computer Science and Institute of Technology) and I got the distinct impression that CMU is not very flexible and is not very generous about much of anything -- kind of a state school attitude at private school prices. (My daughter chose MIT over CMU.)
So I think to make Pittsburgh work as a start-up hub, it will take CMU being a little more open, some more inventor-friendly IP laws by the state of PA, and patience. And somehow you have to keep the first generation of successful entrepreneurs around to be the VC's for the next generation.
Every year, the School of Computer Science publishes a survey of where undergrads go after college: https://www.cmu.edu/career/salaries-and-destinations/2015-su... [pdf]
About half of the 2015 graduates go to employment in the West/CA.
I'll add that I am not even a graduate in CS (I majored in Business), yet I know a lot of non-CS majors my year who have also moved out here.
California is where the prestigious jobs are. And that's what matters at the end. Is Pittsburgh capable of supporting a Silicon Valley? Not as long as Pittsburgh's weather remains the way it is, anyways.
AlphaLab accelerator and TechShop are in the area, and there are the Google and Uber campuses by CMU.
A lot of the talent right now is getting pulled by the big name west coast companies, but I could see something growing over the next ten years.
(The weather is awfully dreary, though.)
Really? I like a lot about the California climate (and terrain) but this seems a level of geographical determinism that wasn't true until pretty recently. And arguably, even today, is influenced mostly by a fairly specific class of mobile/social/web companies.
For example, there's a huge amount of pharma/genomics and other forms of tech in the Boston area (and most of the big SV companies are adding or have added offices there as well). And Boston isn't exactly known for its weather--not that I actually mind it all that much most of the time.
By that logic, the desert southwest should be booming in tech. The weather is admittedly not to everyone's taste but a lot of people like it.
Yes, it really is that bad.
Keeps things interesting as long as you remain indoors!
... not to mention the coastline. In terms of longer-term capital investment, Pittsburgh has some high-ground advantages. ;)
What's brutal to me? North Dakota. Montana. Maine. Vermont and New Hampshire. Northern New York and its Buffalo area.
Low cost of living: Sure, it's low compared to SF, but it is increasing at an alarming rate. Just look at how quickly housing prices have been rising the past few years. Maybe this isn't something to worry about - maybe it's just a sign that Pittsburgh is a place people already want to move to.
Bicycle/pedestrian friendly: This is a great point, but it seems unrealistic given Pittsburgh's geography - it's surrounded by mountains and can experience some pretty harsh winters. Those factors make it difficult to be friendly towards cyclists. The public transportation could be much better, but faces the difficulty of, again, the geography.
Culture: Now I don't mean any offense to anyone from Pittsburgh, but their culture (in my experience) has been anything but "tolerant". I visit Pittsburgh at least once every other month, and most people I meet there, unfortunately, are pretty racist. Now, it's perfectly possible that the people I have met there are a minority, but I'm just speaking about what I've observed.
There are also several great points that I agree with: the food scene in Pittsburgh is great (and growing!) (check out Butcher and The Rye if you have a chance) , great universities all near downtown (CMU, Pitt), several notable tech companies there as a foundation (Google, Uber, etc), and every time I visit there I am optimistic about the city, though I question whether or not it can become the next big Startup Hub.
Also, don't forget that there are other rust-belt cities that are experience a regrowth: Detroit and Cleveland. Pittsburgh is ahead in that race, but each city is unique, and who knows what the actual next Startup Hub will be.
Pittsburgh has a fantastic cultural scene. Performing arts, visual arts, it's all great and cheap.
I think the Elephant in the room is the weather. The partly cloudy weather pattern is tough for me. I prefer for more consistent sun (which I get in Boston or the West Coast).
Sadly, I don't travel to Pittsburg as much as I did post collage (used to go every year or so).
I find it to be largely opportunistic at this point. A correction of sorts, as the real estate was underpriced significantly in areas that 10 years ago were very rough. Middle class and upper middle class business owners saw opportunity to open storefronts in an area that may have been a little risky, but the caution turned out to be unnecessary. Those areas are booming now.
> I visit Pittsburgh at least once every other month, and most people I meet there, unfortunately, are pretty racist.
I'd be very interested to hear where in the city you are encountering this. I'm not saying it doesn't happen. I'm not saying it happens rarely. I know it's not really in the touristy areas, at least AFAIK.
Pittsburgh is one of the least diverse metro areas in the country (http://www.post-gazette.com/business/career-workplace/2015/0...) and it really is eye opening how segregated the city is when you live anywhere else. I discussed this with most transplants I knew there and they agreed. I think the effect of this was pretty apparent for my entire time there.
This makes me super sad, because I absolutely love PGH and am a huge booster of it. The lack of diversity was far and away the biggest draw back of living there for me.
I'm not saying that it's not a problem where it happens, but I guess I have the fortune/privilege of observing it so rarely despite living in an suburban borough that is 29.25% White, 66.51% African American according to the 2010 census. I admit that I don't patronize its lone business district very often.
In the city, though, I don't have incidents in my memory that I can cite as evidence that racism is "huge" in Pittsburgh. Big incidents are in the minds of many, e.g. Jordan Miles incident (https://duckduckgo.com/?q=jordan+miles) and to my knowledge and memory, are the exception, not the rule. Then again, I spend most of my time in the East End, which is pretty segregated.
I do concede the lack of diversity in Pittsburgh's tech scene though. The only quantification I have of it is C&S's meetup attendance, which is approximately 10% people of color on average (women = 20%). The number of PoC attending have been slowly but steadily increasing but the number of women fluctuates. We're working on encouraging both demographics to attend!
And those margins tend to be pretty ridiculous. Seattle, for example, has upheld historical preservation status on buildings that were completely vacant and had no discernible written history whatsoever. Things like old mechanics garages and derelict wooden apartment buildings that had already rotted through.
Strict historical preservation is nothing more than an anti-development attitude codified into law.
http://www.dailycamera.com/news/boulder/ci_27278888/boulder-...
That seems like a pretty absurd historical designation. It's just creating a burden for the people who bought it. It's a far cry from bulldozing a beautiful old brick building to put in a McDonalds.
Edit:
> The empirical evidence suggests you cannot be too strict about historic preservation. The tougher cities are about it, the better they seem to do.
If you go a bit beyond the US, you could look at Europe and... I'm not sure that's true. Rome has a ton of old stuff that's been reasonably well preserved. Berlin has been torn apart and reinvented. Berlin is doing way better than Rome in terms of startups.
Granted, there are a ton of other factors in play, but if it were just about having a lot of historical stuff, Italy would be the startup capital of the world.
I think I get what he's talking about... you want architecture and places that feel 'real', not some homogeneous office park. On the other hand... most of Silicon Valley is very new, and not very exciting, and it did "ok".
So what city should we bomb to create the next startup hub?
That was obviously very facetious but there was a quote from the eighties or so when the Japanese were doing so well in manufacturing relative to the rust belt. One of the reasons proffered was that the Japanese had to rebuild their infrastructure from scratch after WWII. The quote was to the effect that the problems of American manufacturing wouldn't be solved by dropping an atomic bomb on Gary, Indiana.
I think if PG reformulated his point to something involving interesting architecture and places, it might be better. Although... even there, Silicon Valley doesn't/didn't have that at all, and it has prospered.
In all the historic places you visit and that, in some parts of the world, add up to a significant amount GDP thanks to tourism or related activities. There are some intangible values as well as they help shape the history and evolve a community around specific places (think West Village, Manhattan for example).
I know it can be frustrating and that sometimes is poorly implemented but historic preservation of places eventually pays off. Maybe not all of the landmarked buildings will pay off, but sure some of them will(not unlike startups in that regard).
And what is not culturally important today might be a century form now, or viceversa. You are applying survivor bias. Think of all the historic places no longer with us because they were not deemed culturally relevant or properly protected in first place.
How did ancient Rome ever survive to the extent that it exists today if they didn't have historical preservation statutes? It has a lot more to do with protecting their buildings from angry invaders than it does with protecting their buildings from developers. In reality, developers have little innate interest in destroying the culturally valuable...it is too expensive.
> And what is not culturally important today might be a century form now, or viceversa. You are applying survivor bias. Think of all the historic places no longer with us because they were not deemed culturally relevant or properly protected in first place.
It is true, I'm applying survivor bias. But you are applying a bias of your own. Think of all the future historic places that won't exist because they never get built. At least with my bias we can reason that the buildings that were torn down were, at one point in time, more of a burden than they were worth. Can you imagine not having Independence Hall today because historic preservation statutes decided to preserve all the historic Chestnut Street homes that were torn down for it?
Well, time changes. We no longer face the threats of the barbarian hordes of northern Europe but we have modern day speculators that will torn down anything for a profit and not think long term.
And again with the culturally valuable. What is valuable today might not be years from now or viceversa, that's why deciding what should be protected usually requires quite a lengthy process.
> Can you imagine not having Independence Hall today because historic preservation statutes decided to preserve all the historic Chestnut Street homes that were torn down for it?
Or having it two blocks up from the current location? But listen, I'm not arguing that everything should be preserved for ever. And I don't know any preservation society that thinks in those terms. What I'm saying is that deciding what gets preserved and what does not is a tough call and a very complex issue.
You asked where's the evidence that historic preservation, as a whole, matters. I'd argue its pretty evident. Yes you are right when you point out that the system can be abused but that doesn't diminish the importance of building preservation initiatives, specially in country that has a short history.
Also, no such thing as survivor bias when applied to hypotheticals, for obvious reasons.
You don't think those existed in antiquity? Now that is some survivorship bias.
> What I'm saying is that deciding what gets preserved and what does not is a tough call and a very complex issue.
Of course it is. All I'm asking for is to let the decision be made by the people with the skin in the game: the owners. Otherwise you get committees overrun with people who see it as nothing more than a tool to send "fuck you" notices to developers. Without skin in the game, there is nothing stopping them from being abused as an anti-development tool, and to the detriment of our current culture and quality of life.
They had a shitload of buildings, and they made them out of stone, and they made many of them to last, and also the city was essentially abandoned for hundreds of years.
Historic preservation is no more than collecting, done by the government. There's no guarantee that what they collect will appreciate in value. For example, maybe they're preserving 1970's Kenner Star Wars toys, and maybe they're preserving the ones from 1999.
1. http://www.stlmag.com/arts/history/why-is-st-louis-destroyin...
Secondly, preservation review is about more than saving beautiful or historically important buildings. It's also about maintaining an urban form -- about preferencing the existing built environment over modern, car-centric, suburban-style developments. See this example:
2. https://nextstl.com/2015/01/do-the-math-qt/
This second point is tricky, because lots of people prefer the gas station to some old, simple, under-utilized structures.
But not the type of young people who want to work at a startup. Cities need to decide which kind of constituent they want to support.
As always, laws are reactionary and laws can be abused for personal gain. But I don't think the idea of historically preserved buildings is fundamentally bad.
It kinda reminds me of Front[0], another YC startup from France, which decided to eventually move their entire team to SF. I'd wager that the cultural differences in this move outshine those of a Pittsburgh-San Francisco move, and they still decided it was the most sensible option.
And if they are sucessful, you file them under SF startup instead of French startup, or Pittsburgh startup, or Berlin startup, because that's where they've spent the majority of their time, and that's where they are right now. Through some mental fudging, it becomes another data point for "If I want to start a startup, I need to go to SF".
[0]http://themacro.com/articles/2016/02/pros-and-cons-of-distri...
What happened afterwards? Everyone moves to SV for YC, then 3/4 of the founders went to Google.
http://techcrunch.com/2016/02/10/mental-health-startup-lante...
You can make 'world class' mean whatever you'd like, but I think most would consider Pitt a solid state-level school, whereas CMU is more competitive nationally.
http://dellweb.bfa.nsf.gov/awdlst2/default.asp
I'm definitely not saying it doesn't matter, but it's not as significant as CMU, and PG's argument seems to be that you benefit from having a really apex research institution for making a startup scene.
Plus CMU and Pitt collaborate quite a lot, especially in biomedical research.
Pitt+CMU == complementary research institutions that have had a long tradition of collaborating (for example the Pittsburgh Supercomputing Center) and BOTH provide strong intellectual anchors for the city. BOTH are significant.
[1] https://en.m.wikipedia.org/wiki/University_of_Pittsburgh#Res...
If you are seriously considering moving to Pittsburgh or someplace similar because of cost, look at Boston, which is way closer culturally to Silicon Valley than any second tier tech city, and don't focus on living in the prime locations.
...which it may be soon! In fact, for office space, it already is!
I don't get the appeal of Boston as a transplant at all. Not compelling unless you are there for a very cool job or education.
But as plane ticket prices go down, those areas get larger and larger. It's worth saying: "Pittsburgh, this is time sensitive! Boston will eat your lunch by default, so make your moves quickly."
Also, if plane trips get cheap enough, look at how the Hong Kong / Shenzhen area fares. Plenty of money and tech talent, and China's pushing a lot of VC money (although, who know where that ends up). If plane tickets get below the price of a video game console before an American city pops up as a cheap-dense-livable-tech-hub, HK/SZ will probably gobble them just due to order-of-magnitude advantages (4x the VC, 30x the population of SF, with preposterous numbers of PhDs, at some point the advantages will compound into something like SF but 100x more powerful).
So Paul Graham is now helping to perpetuate the current Silicon Valley ageism.
How useful is that data point? That bracket could be the current average of SV's founders, due to forces in action at that region. Another region could have an entirely different age bracket.
And that's founders. As the article touches upon, there won't be many investors. And certainly not at that age.
What you actually need to do is to get bright people to go to a region and stay there. If you just try to optimize for that age bracket, you won't have Silicon Valley.
Here's the thing, though. IMO successful entrepreneurs (startup or otherwise) have to want to be working for themselves. Money as a concern is of the form "Do I have enough money to make this work?" rather than "Can I make more money at MicroAmaGoogBook?". Personally, as someone who ultimately wants my own company and doesn't really want to sell portions of it to get there, I see the high-paying BigCo jobs as stepping stones to get to where I ultimately want to be. I don't see them as drawing me doen an alternate path.
What if investor seeding would be hugely beneficial for a hub to become "the next SV". Imagine this thought experiment...pg overcome with nostalgia convinces YC to permanently move to Pittsburgh and change the standard recommendation to "stay 3 month in Pittsburgh". I'm not convinced YC would implode..there'd be some difficulties sure. But I'd also expect (some of) the money to follow YC.
A "Pittsburgh batch" (to go along with the regular one) might actually be an interesting experiment to run.
A lot comes down to the seed planted when Shockley co-invented the transistor and then moved to be near his mum's place in Palo Alto. The whole thing went from there. The 'traitorous eight' left his company and:
> would go on to found other companies after that, including legendary venture firm Kleiner Perkins, AMD and Intel. Over the next 20 years, 65 companies would be started by first or second generation defectors from Shockley Semiconductor Lab, giving it a legitimate claim as the birthplace of the chip industry that gives Silicon Valley its name.
And then the people who made millions/billions from those invest it in new ventures in the tech field they understand. It's pretty hard to reproduce that else where.
It's near a world class University (UMich) and has an abundance of office space, mostly owned by Dan Gilbert. The challenge is that it's just not that safe of a place once you venture outside of the protected downtown bubble and public transit is dismal. It's becoming a refuge for artists and free thinkers priced out of Brooklyn, seeking space that still retains it's edginess and grit. The problem is what they're bringing is aimed at the new Detroit urbanites and don't really help solve problems for all of the other normal working class folks in Detroit.
Disclaimer: I live in the Bay but spent a lot of time in Detroit over the last few years when my SO was doing a residency in Clinton Township in the Detroit suburbs. She would vehemently disagree with me on my assessment and sees a frontier spirit emerging there.
What he's done in Cleveland has been pretty smart. He started by purchasing the Cavaliers and becoming a relatively vocal owner (at least compared to the previous owner). That won him a lot of favor with public. He opened up a Quicken Loans office in the city, providing jobs. He then was able to put a deal through public election granting him a casino monopoly in the city. He leased (and later bought) a mostly empty old department store building to house the casino that conveniently connected to the Cavs' arena. He later bought the Ritz hotel that also connects to the casino and arena and just recently purchased the shopping mall / train station that is the connecting piece to all of those.
There are definitely some negatives to be seen from what he's doing, but I think in the end it will be an impressive improvement for that part of downtown, which was already in the upswing.
http://www.freep.com/story/entertainment/dining/restaurant-o...
Even month to month when I visit I see the changes. There's getting to be a real cluster of tech people living and working near Grand Circus park.
He says that the Detroit "rejuvenation" is a complete scam. That all the articles in the press reference the same three or four restaurants. That, yes, there is a nice area in Detroit around what he calls "the green zone" (not sure if that is the accepted term or just a reference to the protected area in Iraq) but once you leave that square mile it is a wasteland.
Again, I have never been. But my friend gets annoyed at all the "Detroit is the next big thing" talk for these reasons.
It was founded when waterways were the main transportation access point, and boomed as it was the intersection of 3 rivers. But today Pittsburgh has an airport that isn't a major airline hub, with limited flights that need a connection from most cities. Rail by Amtrak is infrequent and impractically slow. The drive from NYC is 6 hours, 5 even just from Philly. And extremely treacherous in winter, too - winding Appalachian mountain passes with icy roads, blizzards, fog, narrow lanes. The nearest neighboring city is Cleveland, which isn't exactly a big boost economically.
Contrast to Philly on the other end of the state and you're 2 hours from NYC, Jersey, DC with high speed rail, a major intl airport etc. Sure there are west coast cities with worse problems, but they still have the optimism of manifest destiny working in their favor. Getting caught in a blizzard driving to Denver just feels more exciting than a blizzard driving to Pittsburgh..
If Pittsburgh doubled down on the airport or got cash from harrisburg to improve rail links to NYC (we can dream), maybe build up as a tourist destination even, it could be competitive. Till then, yinzers are going to have to enjoy the secrets of their charming city on their own.
Pennsylvania became an economic powerhouse because of the railroads, but without them it's just a sad shadow of it's former glory. If someone took the lead on rebooting the railroad industry in PA it would reboot the entire economy of the state.
https://www.innovationworks.org/Portals/1/documents/Pittsbur...
Off the top of my head, Duolingo, 4moms, Treatspace, Wombat Security, Redzone Robotics got big $$$. That doc has more that I'm less knowledgeable of.
Exits:
Vivísimo acquired by IBM 2012 (I was a part of this one) M*Modal acquired by One Equity Partners 2012 Carnegie Learning acquired by Apollo Group 2012 BlackLocus acquired by The Home Depot 2012 The ExOne Company IPO 2013 BodyMedia acquired by Jawbone 2013 Mobile Technologies acquired by Facebook 2013 BPL Global acquired by Qualitrol 2013 Shoefitr acquired by Amazon 2015 Giftcards.com acquired by Blackhawk (I think 2013) LightSide Labs acquired by Turnitin 2014 Powered Analytics acquired by Target 2014 Millennium Pharmacy Systems acquired by PharMerica 2014 RedPath Integrated Pathology acquired by PDI 2014 Aesynt acquired by Omnicell 2015 iGate acquired by Capgemini 2015 Blue Belt Technologies acquired by Smith & Nephew 2015 Ottomatika acquired by Delphi 2015
My Family is from Pittsburgh, I went to CMU for undergraduate and then graduate school. I helped found/bootstrap a video game company there that did quite well for a few years form 2009-2011. The city is manageable, quirky, tolerant, fun, and affordable. I agree with everything PG says here... including the lack of funding. I was with ModCloth when they had to "move the core team to SF to get investment". My video game company's troubles can be traced to lack of funding (and the CEO used too much personal capital remain objective).
I would add one more negative: a bad airport. The Pittsburgh airport used to be a world-class hub for US-Airways and offered a ton cheap flights everywhere. A good airport is important for attracting talent and business... now this huge airport is less than 1/2 utilized and due to poor mass transit, it's hard to get to (I guess Uber is fixing that for the city). You could be in Philadelphia, DC, and NYC within an hour... but I always opted to drive to save on those overpriced domestic flights tier-2 airports are known for.
There are investors in pittsburgh (like http://www.bluetreealliedangels.com), but they aren't used to investing in "digital" tech. There are some early-stage incubators (http://alphalab.org and some others) but they don't have the network reach to justify their high stake in the company. I would argue that capital exists, but isn't as loose as it is out west. The folks who have it aren't as risky... which might be because they don't have as much to play with, but I think it simply is that they aren't used to the type of businesses Silicon Valley is starting... and that seems too risky.
https://en.wikipedia.org/wiki/Pittsburgh_International_Airpo...
"We currently fly to 54 nonstop destinations on 13 carriers via 171 daily flights, and we will continue adding new routes."
http://flypittsburgh.com/welcome-to-the-next-chapter
PIT's "AirMall" was a fantastic concept. I grew about an hour north of the airport and we'd go shopping at the airport frequently. 9/11 basically killed it and much of the expansion of the airport. The 2008 Recession didn't help, either. AirMall business did eventually bounce back to pre-2001 levels in the last few years. I'll bet that if the gov't ever relaxed the security theater of the TSA, the mall could be booming again.
>The empirical evidence suggests you cannot be too strict about historic preservation. The tougher cities are about it, the better they seem to do.
Interesting contrast to the common belief here on HN that historic preservation is just unimportant NIMBYism and should be opposed in the name of bringing down housing costs.
I don't think the next hub of cultural and economic significance is necessarily going to be about what we think of as startups, it will probably be something that doesn't even register with most people today.
However, the comparison between Silicon Valley and Pittsburgh Paul omitted has to do with the weather. Any freshman at CMU can tell you that the winter (and fall, and spring) in Pittsburgh are less than pleasant. Just last week it was snowing, in April. The fact is, for more than half the year, people won't be able to fully enjoy all those cafe's, restaurants, and cycling. The cold, rain, and snow do impact the day to day life of the people who live here and it's a factor of life that can't be overlooked. For many people, the choice between similar jobs in San Francisco and Pittsburgh is an easy one in favor of San Francisco.
Pittsburgh's startup culture is growing, and there are great companies springing up here. But as a founder, I see Pittsburgh as a jumping off point. I don't wish to live with this kind of weather any longer than I have to. Not when I have the option to setup an HQ in San Francisco. And I know the people I want working with me now and in the future feel the same way.
Ironically PG did point out Pittsburgh's weather as a sticking point in another essay some years ago, not sure which one at the moment.
But if start-ups flock to Pittsburgh and start engaging in cargo-cult replication of the idiotic open-plan madness of SV, poor wages relative to cost of living, poor employment culture that places importance on inane things like how much alcohol you consume, then count me out.
I frankly don't understand why a region would want to become like Silicon Valley.
Don't get me wrong. I understand why unrealistic founders would want it and I understand why exploitative VC firms might want it. But why would employees or residents want it? It will only accelerate wealth concentration, establish monoculture, lead to absurd corporate corruption, gentrification issues, and on and on.
Quick, Pittsburgh. Stop this before your local politicians have completely sold you out!
It's pretty close to that in Sydney. Conservative media voices are fairly unanimous in their derision of Sydney City Council's attempts to build a network of bicycle lanes through the CBD.
I hold the opposite view, despite never riding in the city, but it's definitely a strongly divisive issue.
http://www.governmentnews.com.au/2016/04/why-sydney-hates-cy...
The video of PG's keynote is available here: https://www.youtube.com/watch?v=CpfdtgW6_oI
There are almost no cities in the US outside of SF that meet those two criteria. Even NYC which has VC money (nowhere near that of SF) doesn't have more than two major exits (Etsy, Tumblr).
All those other things are nice to haves. Job opportunity and money are everything.
Pittsburgh has none of those. Nowhere on the East coast does, and I can verify it as we are HQ in D.C.
Also Pitt is cold.
Buffalo is worse because someone made the wise decision to move UB out to the suburb, which essentially rendered the already lost town to a ghost city.
Put young people into the center of town helped to sustain it, however a city's future is more decided by the overall economy development, both Pittsburgh and Buffalo are just _lost_ in recent decades on that part.
I've only spent a little time in western PA, but it's definitely better than that.
http://www.stateoftheair.org/2015/states/pennsylvania/allegh...
Our ratio of sports to population is really high. The Cultural District is really vibrant, particularly if you happen to be around during a gallery crawl. If you're at Point State Park at the right time, you might wander into a big event (arts festival, regatta).
Downtown definitely gets quiet after a certain point, but I've seen some take that as a point of pride - we're a "city that sleeps."
Pittsburgh has plenty of business opportunities. There is A LOT of industry within the metro area. A small group of folks can relatively easily set up shop and make excellent careers doing tech in Pittsburgh.
The "bones" of the city are excellent. It is a medium-size compact urban area surrounded by streetcar main-streets, industrial areas, and older 'burbs. Neighborhoods are relatively stable, there aren't insane fluctuations in property values, many places are walkable/bikeable and there's at least a corner in pittsburgh for every taste.
As for it being a "start-up hub" where "start-up" is defined in the silicon valley sense of going from idea to VC investment to IPO in a few dozen months-- no that is not common. But that's such a narrow band of activity, can you really say it is common anywhere?
Circa: 2008-09
In a 2013 ranking of 277 metropolitan areas in the United States, the American Lung Association (ALA) ranked only six U.S. metro areas as having higher amounts of short-term particle pollution, and only seven U.S. metro areas having higher amounts of year-round particle pollution than Pittsburgh. For ozone (smog) pollution, Pittsburgh was ranked 24th amongst other U.S. metro areas.
Pittsburgh can be cool, but I wouldn't consider moving to a city where my health is in serious danger.
* DuoLingo
* Oculus (Facebook)
* ShowClix
Except in Sydney, Australia. Welcome to Murdoch's backyard:
"On a bike path to chaotic traffic: new cycleways could mean more gridlock for city drivers "[1]
"The cycle of waste will cost us $76 million" [2]
"SLOW LANES: If they don’t want it, take it off them" [3]
[1] http://www.news.com.au/national/nsw-act/on-a-bike-path-to-ch...
[2] http://www.news.com.au/national/nsw-act/the-cycle-of-waste-w...
[3] http://blogs.news.com.au/dailytelegraph/timblair/index.php/d...
Having lived and traveled plenty, I think I can give a pretty honest assessment of Pittsburgh. The first thing I need to share is that this is a racist city. Granted, things have improved from the 80s when most of my Pittsburgh-born friends would think nothing of using the n-word. But I dismayed how often I still hear it from thirty-somethings. It is something I've never experienced outside of Pittsburgh. Check out "The most racist places in America, according to Google" in the Washington Post. A city can be amazing in many ways, but it is going to take a serious hit in terms of attracting a global diverse tech community with that shortcoming.
But now for the good stuff. First, as PG discussed and others did mention, Pittsburgh is now a great food city. I think it easily holds its own against cities much larger. Seconds (and related to first) the city is getting more diverse. The fact that the universities have become so diverse (~80 non-Anglo-Saxon) plays a manor role in this transition. Most of these people will not stay in Pittsburgh, but their presence does change the culture. More and more are staying or moving here to start their careers.
On the tech front, things have been slowly improving. CMU and Pitt have always fostered tech spin-offs, but things are really changing now with Google, Apple, Facebook, and Uber setting up research centers. Without a doubt, this is going to change Pittsburgh. You can already see the changes with the construction of hundreds of $2000+/mo apartments in what used to be the "ghetto". I am hopeful that this will change one of the current shortcomings of the local tech scene – that this is an "eds and meds" town, and if you want to get funded, you are more likely to meet with success if your business in that space.
Pittsburgh has MANY cool, walkable neighborhoods. This is a huge draw for young adults. There are up-and-coming hip, walkable neighborhoods were you can still buy a nice house for $80K. FIOS is readily available. Taxes are pretty average. The weather is relatively mild (granted, I came from upstate NY). The geography is beautiful - the rivers, the hills, the parks, etc. We have an excellent system of bike trails. I'll be biking to DC later this spring.
Pittsburgh is very active on the city-data forums. There is no better place to put your finger on the pulse of a community in my opinion. You'll find many threads on the issues I've discussed here. I remember reading a couple threads worth paraphrasing. In one, someone commented that Pittsburgh must be a very rich city because it has more mansions than any other city. He clearly didn't understand the history of Pittsburgh and how much wealth was created during the industrialization of the early 20th century. But his assessment is accurate in that the city has WAY more than its fair share of mansions build during the timeframe when houses were built big and beautiful by craftsmen who cared. If you do move to Pittsburgh, do yourself and the city a favor and buy one of these diamonds in the rough and renovate. Another lasting legacy of the robber-baron era is that Pittsburgh has an amazing arts and cultural heritage.
In another interesting city-data thread, the discussion was on how Pittsburgh is still a place where people of average means can still live a middle-class life. The reason is two-fold. First, the cost of living is relatively low. But just as important is that Pittsburgh is a very hardworking and entrepreneurial city. This is the city that, in a sense, built itself and also much of the rest of the country. Steel, electricity, glass, etc. – they all came from Pittsburgh. That work ethic is still very much present. People here work hard, play hard, drink hard, and love their sports teams.
Sorry for the long post, but since so much of what I read on this thread wasn't about Pittsburgh, I felt I had to help shift the balance back. Finally, check out pittsburghtoday.org which will tell you most everything, data-wise, that you'd want to know.
http://www.theonion.com/blogpost/sometimes-i-feel-like-im-th...
"@paulg's advice to Pittsburgh is so the opposite of what @sama, @justinkan want SF to do. http://paulgraham.com/pgh.html " https://twitter.com/kimmaicutler/status/720031161989267461
Aside from Duolingo (who have been there for ages) and Uber (who aren't really based there) what's so exciting about Pittsburgh?
(I'd also love to see Portland Oregon, mentioned as an alternative, get the world-class research university it lacks now.)
They can usually turn around an effective product in at max a year.
They usually create a set of underlying patents, this takes maybe a year of reading academic journals and thinking of your physics and me guys, and then you usually have a theory you can put in practice.
Apparently, all they need from there is a trip to home depot, one or two things off amazon, and a PCB designed and printed. From there, they can make a wide range of products.
One small invention can be used as the underbelly for many, many pieces of technology; everything that comes as a result usually also has one or two applications to research or defense. This means big money.
Most real R&D is self sustaining, so long as you have a team that can sell.
The hard part of R&D is getting the right people in my mind.
I've had this conversation with many people, and it usually helps to ask this: has anyone you have met who works in R&D said they didn't like their job?
I've never heard of it.
I'm curious to see what you think.
Along these lines, I'm quite pleased that Bend is getting a university, OSU Cascades, which is something that has been lacking over here.
Realistically you have to start small, so I think it's better to be focused.
Olin College would be my model for the undergrad program; probably takes a $200-500mm commitment which is about the upper bound of a high net worth endowment.
Combine that with a heavily industry-funded graduate program (maybe start focused on a couple specific industries -- say, security and hardware verification, if you could get HP/Intel support), also small and focused. MIT Media Lab would be another model.
Portland already has a small but respectable startup scene, and a few bigger anchors (Intel, etc), but it has huge potential if it were to build more of a tech/CS critical mass.
CMU and Pittsburgh are great, but for college. I cant imagine ever moving back.. and I'm from jersey originally.
Also the weather, landscape, and a road system designed to match a 4 year old's hot-wheels track are a real love it or leave it kinda thing.
It is true that the coffee houses there tend to have their own personality and become really good places to study.
But still left the city and just returned to Europe. I've left because the poverty rate in the city was high at that time (2010) and was too easy to either get mugged on the street or get yourself inadvertently involved in some violent event.
Still, Pittsburgh is a special place in my heart and I still keep contact with friends there. Was happy to read this article, really happy to see the city getting better.
The weather has been mentioned by others. They have relatively rough winters. Fairly hot and humid summers. Spring and autumn are pretty awesome though, unfortunately that's when CMU was doing the CMU thing and play time was limited.
Perhaps it has changed as Paul suggests, but in the 1990s they were still in their negative pessimistic ways. It was routine to hear locals talk about how the city's best days were in the past. I learned 2 things: 1) when big time jobs leave it takes a long time for the place to heal and Pittsburgh lost a lot of jobs from the unions and steal and all sorts of things. 2) I grew up in a fairly optimistic place, at least a neutral one towards progress and just building things and doing things. They had this negative attitude that just sort of sits on you, I couldn't place it until I really left, but the negative attitude was oppressive. You're young and excited, you want to dream, you want to believe the dream and it's a place where a lot of people have had their dreams go away. A substantial portion of the populace just sort of expected Pittsburgh to fail when it attempted things. I found that attitude rough, it wasn't obvious to me the entire time I was there but it didn't feel good. It's bigger than just Pittsburgh, Wheeling has experienced some rough times, I visited Youngstown once (they had the nearest version of some store where I could exchange some Christmas gift) and it was like visiting a different country.
The tax situation there isn't great. Sort of surprised nobody has mentioned this, there is like a city income tax. And then ultimately, more money is more money, you can talk about the cost of living but iphones, xboxes and cars cost the same everywhere.. I want to say the good starting jobs for fresh grads in the Cleveland/Pittsburgh area were like $50k-$60k in the mid 1990s, out west I made more than that.
PGH is a great town, a lot of character, it's a good town to raise a family in, it has a lot of positives. Surely there is enough money there to spin up some VC funds, I could see it being a small to medium startup hub but I don't know how much it has really changed.
Oh, shoot. SF is only about 4 hours from Tahoe. Damn. Pittsburgh's ski resorts (har har) are like bad zits owned by a prick named Robert Nutting in comparison. Now my idea will backfire and everyone will rush west even faster. This city planning stuff is harder than it looks.
All kidding aside, even with the weather, Pittsburgh has a lot of advantages going for it. CMU might be the major research institution in the region, but the other schools will benefit the startup scene as well. Not just in terms of direct research, but in feeding other students towards CMU for grad work, having a more educated local populace in general amongst the younger demographics, etc. Time will tell how those factors play out.
Budding "Silicon Valleys" would simply be the target of aggressive and unrelenting talent raids.