Where to Locate Your Startup?

Susan Hall

John Cook at TechFlash posed the question, "Where would you want to start a company?" building on Tony Wright's blog, "Should You Move Your Startup to the Valley?"

 

One of the points from those posts is that if you want to be bought out by, say, Microsoft or Google, that you could locate near those companies.

 

Turns out, that's good advice, according to this Wall Street Journal article. A study of tech acquisitions since 2002 by 451 Group shows that California companies bought in-state companies 36 percent of the time, three times more than they bought East Coast companies. It also found companies more likely to buy startups from nearby on the East Coast, in Texas and Washington state.



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