I think we have a pretty darn good one (better than most).

IMO, it boils down to two things: Having a culture that glorifies/encourages/supports startups (which we have— and it’s getting better I think) and founders having the resources they need (which we only sorta have).

Startups take wealth. SOMEBODY’S wealth.

“If you have a rock star team and a little bit of money, you can build a small rock star product in a short amount of time.”

A rockstar product doesn’t mean a profitable product. Even if it does, it doesn’t mean it today. How many rockstar teams are entirely comprised of people who can afford to eschew paychecks for 12 months? AND cover the skyrocketing bills of a growing rockstar product?

Startups are cheaper, but they sure as hell aren’t free. They need wealth in the form of a stock windfall, mortgaging a house, savings, loans, consulting… whatever.

THAT is what the valley has on Seattle. Lots of cash-rich geeks dropping out of companies like Google to build stuff or to invest in other geeks who aren’t cash-rich. And, of course, Sand Hill road firms competing for deals. Right now, the only startups that can get off the ground are:

1) teams that has enough personal cash to cover living expenses and growth/infrastructure costs for a 12+ months

2) teams that get to profitability inside a few months (a ridiculous myth for the most part unless it’s a services/consulting “startup”)

3) teams that can navigate the difficult waters of working on a startup part-time while consulting or working a day job.

Of the people who WANT to do a startup, I’d say those three probably represent a tiny minority.

- Tony Wright, Founder of RescueTime