What Makes a Startup Winner in Silicon Valley?

February 9, 2015

Is Silicon Valley a place or a state of mind? “An “Analysis of San Francisco’s Startups Shows Where the Real Silicon Valley Is” attempts to peg the there there.

The map suggests that Silicon Valley embraces a chunk of territory in the San Francisco area.

Apart from geography, there was an interesting list of success characteristics.

I noted this passage:

Based on the researchers’ model, the best indicators of entrepreneurial quality were characteristics like a company’s name. Companies that have short names containing words associated with technology tend to grow better. Businesses that aren’t named after their founders also tend to do better over time. In addition, the model showed that corporations are six times more likely to do well compared with companies that aren’t incorporated. The same goes for trademarks; companies with trademarks are five times more likely to grow than non trademarked businesses. Patents are also important indicators of entrepreneurial quality…

In my view, one can use these characteristics to identify search and content processing vendors likely to have a greater chance of success. The company name issue seems to be important. When a company located outside of the Silicon Valley hot zones lose control of their name and brand, the company may face more friction. Trademarks are also important.

Does this mean that when a vendor’s attempts to boost its identity are ineffective, that vendor may be at risk? In short, marketing may be more important than some technologists believe. Also, Berkeley seems to be a better location than a trailer in Mt. Diablo.

Stephen E Arnold, February 9, 2015


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