Why and when should I open an office in Silicon Valley?

Emil Eifrem / November, 2017

Description

Emil Eifrem, CEO and Founder of Neo Technology shares a couple of reason to why so many entrepreneurs choose to build their startup in Silicon Valley.

Video Transcript

Why and when should I open an office in Silicon Valley?

Why and when should I open an office in Silicon Valley? I have a theory around centers of gravity for every industry. I think that if you’re in finance, you should relocate to New York or to London. If you’re in fashion Paris probably, like if you’re in entertainment or movies, Hollywood. You don’t have to go there but the way that I think about it is that you just get a lot more compounding effects of being near the central gravity. I liken it to running uphill versus running downhill. You do the same activity, the same motion, in Malmo Sweden, if you’re building a graph database startup, as you do if you’re here in the Valley, but you just get way more milages if you’re near the central gravity of your industry.

I think that’s the key aspect of why we chose to relocate, at least our headquarter to the Valley. I think that comes down to your ultimate goal of your startup. So, for us, we want to build a big, independent company and, you know, at the stage where we are 5000 people, obviously all of these wouldn’t be in one single location. At that point, it’s going to be a global organization. At that point, we’re going to have to deal with being highly distributed across time zones, across continents and all those things. So, if that is going to happen eventually we might as well built this into the DNA in the early face, right. So we became distributed across 9 times zones when we were 10-11 people, which is super painful. We’re about 120 people now, I think, and we have a growing pain, so we have a 200 people personal organization because we’re so highly distributed. But I think eventually, that skillset is going to pay off because, at the end of the day, we need to be a global and distributed organization in order to achieve what we want to achieve with the company.

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