what makes Silicon Valley so conducive to creating startup companies

what makes Silicon Valley so conducive to creating great startups?

The things that makes any area conducive to business creation (the Bay Area or Boston or Austin or wherever) are an entrepreneurial culture and a supportive ecosystem of institutions and professionals.

While it is certainly possible to create great businesses without those things, it is far more challenging. Places like the Bay Area tend to have a disproportionate number of individuals who are willing to bet on risky ventures. And they have a disproportionate number of lawyers, bankers, investors, accountants who have an expertise in business creation. In combination, all these things are self reenforcing and create an even stronger startup culture, which in turn creates a stronger drive towards business creation, which in turn fuels an economy of startup-focused service providers, which in turn lubricates the funding process, which in turn promotes startup growth, which in turn creates an even stronger startup culture, and so on.

Bangalore too has many people but many if not all have a stupid herd mentality and nobody gives a damn to people who have failed earlier in their previous ventures.To be a true winner really take a bet on a large number of companies and invest small sums only.A small sum of US $10,000 gets a lot of work done here (in Bangalore or a good city in India) and the fact is people here normally charge only on actuals (I am not talking of the big companies here).

The best type of people exist here too but these are really well hidden and one has to really search a lot and maybe these type of people will think of helping out-unlike in Silicon Valley where say a KPCB will offer you a check to just try out your concept.The check will be just enough to meet your expenses but hey it comes without the delay and immediately trust is established.It is this faith people show that spurs on these entrepreneurs who have spotted an opportunity and have had the guts to present their idea to a VC fund or Angel fund.

That said what further needs to be emphasized here is recognize the potential of an idea when you hear it and act after the same and not keep an entrepreneur waiting-the waiting period destroys whatever little trust an entrepreneurs has in an investor.

Tips to build a company are:

1. Listen to the idea patiently
2. Help the entrepreneur build a team
3. Incorporate the company
4. Write a business plan with the help of all stakeholders
5. Cut down costs to the barest minimum
6. Give visibility to the idea by giving a freebie
7. Use the net extensively to promote
8. Win the trust of team members and potential clients.

All this is done in Silicon Valley and the atmosphere there is a state of mind and people actually teach others what they do not know-it does not happen a lot here however it is changing and it is for the better.

The link I have seen today is www.innovations-report.com
Some credit for this article goes to www.ventureblog.com and to Dr Sadagopan's blog.