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@garrytan I would urge you to reconsider this decision and open YC Austin.
First, the data is looking in the rear view mirror. “Past performance does not guarantee future results,” as the saying goes. The Austin startup ecosystem is off to the races thanks to first movers like
@elonmusk and
@JTLonsdale.
Second, this is a self-fulfilling prophecy. If YC and others support Austin, it will be successful.
Third, and this is a biggie, if you don’t open YC Austin, you’re basically acknowledging that Silicon Valley has insuperable network effects, which was effectively Ro Khanna’s point. You may win this or that political battle, but eventually the political system will extract as much as rent as it can. If you don’t start diversifying now, you won’t have any leverage.
Fourth, if Tech doesn’t start sharing the wealth with Red States, it should expect narrow and shrinking political support. With the Left going socialist, the Right should be an ally; it still believes in innovation and property rights. But many on the Right wonder why they should support radical change that mainly enriches Team Blue.
I fully agree with you that the tech backlash is bad for America, but to solve this, Tech has to include all of America.
This goes for the rest of the VC ecosystem. I would urge you to open Austin offices in 2026.