Shervin Pishevar says top entrepreneurial talent no longer needs the United States
Despite its continued role as the source of much tech financing, the United States is quickly losing its appeal to some of the top tech talent throughout the world. According to Shervin Pishevar, one of the top venture capitalists in the world today, the United States, in general, and Silicon Valley, in particular, are quickly losing their competitive advantages as places that attract the best and the brightest. This, he says, is a result of the increasing globalization and ease of communications that make it possible for high-efficiency telecommuting and outsourcing of complex project to take place.
Shervin Pishevar says entrepreneurs can skip the $5,000-per-month apartments
One of the most serious issues that Shervin Pishevar sees taking place within the tech sector in the United States is the incredible inflation in housing prices that have occurred throughout the San Francisco Bay Area. While the Bay Area now features 700-square-foot homes that go for over $2 million, the situation is similar in other tech capitals throughout the country.
Shervin Pishevar points out that there are vastly better deals to be had, in terms of living expenses, in so many places throughout the world that it seems almost redundant to point them out. For example, an entrepreneur looking to start a company in a place like Vietnam, which has some of the most idyllic locations and great weather anywhere on the planet, might be able to rent an entire large house for just a couple hundred dollars per month. That same house in Silicon Valley might cost $40,000 per month. And the price discrepancies can actually get worse when talking about commercial office space, salaries and ongoing costs of doing business.
With discrepancies like this, it doesn’t take much for an entrepreneur building a fledgling enterprise from the ground up to choose a place like Ho Chi Minh City over San Jose. And these types of calculations are being carried out thousands of times per day now. Needless to say, the Bay Area isn’t winning much in these mental contests of where to physically locate businesses.