Should You Move to Silicon Valley?
This is the Chapter 24 of my e-book Silicon Valley for Foreigners, that can be downloaded for free on www.siliconvalleybook.com or purchased for $2.99 on the iBookStore and Kindle. A new chapter will be posted on this blog every week.
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When I moved to Silicon Valley I had no one to ask for help. Google was not sufficient to quell my anxiety or to answer specific questions. It has not been a smooth ride for me, and by no means will it be so for you. One of the reasons I wrote this book is to make it easier for you if one day you decide to move to Silicon Valley as an entrepreneur, executive, student or investor. Here is what I have learned.
Moving as an entrepreneur
If you are an entrepreneur, it has probably crossed your mind moving your company or team to Silicon Valley. The benefits seem attractive: a mature ecosystem where you can learn more in less time, direct access to the best talent pool in the world, and proximity with platforms operated by the large tech companies.
The good news is: if you are a startup founder you will feel at home in Silicon Valley. This is a place that respects entrepreneurs to the ultimate level. Doors will open if you are humble yet confident, ambitious and well-articulated. If you are building something cool, investors, accelerators, universities, co-working spaces, and large companies will treat you with respect.
But be aware Silicon Valley is not for everyone. The cost of living is outrageous, hiring top people is complicated and expensive, and developing a large and effective networking takes a long time.
You will not magically solve the problems of your company by living here for a few months. It seems silly to say this, but many people think they can raise capital or get traction for their startup by simply breathing the air of California. It does not work that way.
Contrary to popular belief, life in Silicon Valley as an entrepreneur is much harder than in other countries. Here, you will not receive special treatment, no matter how smart or successful you have been abroad. Nobody will care. Therefore, competing in Silicon Valley may be extenuating and frustrating because it looks like everyone is smarter or more accomplished than you. Large doses of patience and resilience are required to survive. Remember, just 5 percent of startups become large or meaningful companies.
The main con of being a founder in Silicon Valley is the feeling that, often times, you are the dumbest person in the room. It takes time and gigantic accomplishments to level up. If you have not studied at an American university or immigrated to Silicon Valley from countries with no tradition of entrepreneurship, prepare to have much harder challenges.
Before setting foot in Silicon Valley, my advice is to start interacting with locals to gauge their interest in what you are doing. Be mindful that entrepreneurs and investors here have limited time, so learning how to tell your story effectively is a fundamental piece to becoming successful.
You should find a way to compress your story into a one minute pitch or into a few lines of text. You must be able to communicate quickly who you are, what you have accomplished, lessons you have learned, and what you are doing or looking for.
As a general rule in your storytelling process, avoid buzzwords or dropping names of important people you may know. It sounds lame and unnecessary. However, do not be afraid to look extremely ambitious or even batshit crazy as everyone likes an authentic pitch.
Always back your story up with deep knowledge or data about what you are talking about. It is very common for investors or entrepreneurs in Silicon Valley to deconstruct you in a few minutes. Remember, the ecosystem here loves ambitious entrepreneurs, but it is also very unforgiving of conmen. As they say in America: Walk the talk and never make empty promises you cannot honor. Under promise and over deliver.
In the end, you should not care about statistics or probabilities if you are an entrepreneur willing to work hard. If you really want, you will find your way to come to Silicon Valley and be successful here. Just have in mind it will be an emotional roller-coaster.
Moving as an executive
If you are an executive looking for a non-tech job in Silicon Valley, the first thing you need to know is that the skillsets required to be successful here are, very likely, different from the region you come from. No matter what you have experienced or achieved in your home country, everything will be reset when you come to Silicon Valley. No one will be impressed by your past.
Remember, this region is very competitive and probably has the largest concentration of talent in the world. You will need to reinvent yourself, rebrand yourself, and go through a step-by-step ladder until you reach the position you aim for. It takes resilience and patience. You must adapt to the strong product-oriented and engineering culture of the Valley.
If you come here to work as a business development, marketing or finance executive, you must be willing to add more value to the company than you previously expected. The best non-technical people should have interesting side projects to show they are hustlers and willing to learn. It might be a blog, a hobby or even being part of a nonprofit. Show to your future employer you are not boring!
If you are looking for a technical job, things will definitely be easier. There is a strong demand for engineers, designers, and programmers. The good thing about a technical occupation is that you can be tested objectively. After all, the use of engineering or programming skills tends to solve similar problems anywhere.
In other words, the main difference between an executive position in Silicon Valley and other places is that people here expect you to be a doer and not a talker. A hands-on professional is generally preferred for positions in both startups and large tech companies. In the Valley, people believe in the saying “slow to hire, fast to fire.” So, do not be scared off by the five or seven interviews that you will face during the selection process.
Executives or recruiters might ask you to solve difficult problems or request that you talk about something interesting outside work. They will pay special attention to make sure you fit the culture. Sometimes you can be a great professional with awesome skills, but your personality might clash with the team. Basically, it all comes down to this: if you do not fit the company’s culture you will not get the job.
In any case, it would help immensely if you are open-minded, humble, a fast learner, and endowed with an entrepreneurial spirit. Most companies tend to focus on these traits when hiring.
Moving as a student
If you want to come to Silicon Valley as a student, you will probably be in the best position to enjoy the benefits of the local culture. Students receive special treatment in the Bay Area, no matter if you are taking an undergraduate course, MBA or a Ph.D.. People understand that you can soon become a successful founder or a high-ranked executive.
Thus, most companies, entrepreneurs, investors, and executives are very open to meet and talk if you know the right way to ask. Being a student is a wonderful way to gather knowledge and build your future network. Just ask questions, listen, and learn. Be authentic. Do not try to sound smart or impress people. That will turn them off.
If you decide to come, choose wisely the course in which you want to enroll. As a rule of thumb, universities such as Stanford or Berkeley will give you the most chances of success in Silicon Valley because they are highly respected and boast an amazing network of successful alumni.
Be aware of the executive courses that last only weeks or months. They will not make much difference in your chances of integrating with the local ecosystem. Executives courses are cool and might be useful when you come back to your own country but, in Silicon Valley, they will not open many doors.
If you plan on staying here for some months anyway, I would highly recommend that you attend meetups, which are small community organized events that touch a wide variety of topics such as bitcoin, user acquisition or how to create an awesome mobile interface for your app. The important thing about meetups is that you will be learning from the people who actually do the work. Meetups are a hidden secret of Silicon Valley. So, make sure to use your time wisely.
Moving as an investor
If you are a rich individual, a top company executive or manager of a family office with plenty of access to capital, you might have thought about diversifying your portfolio and start investing in startups in the Bay Area.
In theory, there are many benefits to investing here. The entrepreneurs are super mature and smart, there is plenty of capital availability for follow-on rounds and, of course, the Valley boasts the largest number of exits in the world. It looks like a dream for any serious investor.
In practice, you would face enormous obstacles, the main one being building your credibility and brand. Your money does not matter in Silicon Valley, what matters is the value added you provide to entrepreneurs, your networking and reputation as an investor.
As an angel, it would take years to build a reputation and compete for the best deals. Unless you start taking risks and focus your investment in a super specific target or vertical, you will not find the next unicorns. One good option is to start investing in Syndicate deals on AngelList and learn more about the Valley’s culture before going solo.
If you intend to bring a strategic arm of your company to scout for innovative startups, be prepared for a long-term residence in the Bay Area and a budget that can last five to 10 years. You will compete with angels, online platforms, and venture capital firms. Before opening your proper fund, try investing your money in another small or midsize fund from a credible firm or individual to learn the kinks.
The most important lesson to learn when investing in Silicon Valley is understanding the culture. If you have read until here, you already have taken the first steps. Investors in Silicon Valley are much nicer and pro entrepreneurs than investors in other places, including other American cities such as Los Angeles, Chicago or New York. Trying to exercise control over an early stage deal or screwing entrepreneurs in any way will result in a short and bitter ride.
Coming to Silicon Valley as an entrepreneur, executive, student or investor may change your life forever, but make sure you have the right profile and personality to be able to thrive in a very competitive environment before making the big move.
