Silicon Valley: Something in the Water?

Aery Advisors
2 min readJan 13, 2020

What makes one startup hub more successful than another?

“Silicon Valley” has become the global watchword for tech innovation and growth even if the relevant companies are based across the American West Coast in the Bay Area (San Francisco, Silicon Valley and San Jose), Seattle, Los Angeles and San Diego.

What’s their secret?

What gives Silicon Valley an advantage over other startup hubs?

I should know. I’ve lived and worked in the startup ecosystems of four different countries on three continents over the past ten years, including the American West Coast, Europe and Australia. During that time, I’ve met several thousand tech startup founders and funders, and countless venture catalysts. I’ve met advisors and professional service providers of all shapes and sizes that cater to the tech startup ecosystem.

This experience has given me some valuable insights into what makes a successful hub.

For example, let’s assume that there are smart, creative, hardworking people who want to work for startup and emerging growth companies where they want to be. It could be anywhere in the world. Let’s call them founders and talent — or “labor.”

Let’s also assume that there are smart, creative, hardworking people who like to finance startup and emerging growth companies anywhere in the world. We can call them funders — or “capital.”

This being the case, I ask the question again: why is it that over the past several decades the world has experienced extraordinarily different outputs of innovation, commercial success and market value creation between Silicon Valley and the rest of the world?

I have a hypothesis.

I believe the the most important variable to Silicon Valley’s success is simple:

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