So why doesn’t YV encourage companies to set up shop in Nevada or other low tax, low cost of living areas? How many YC companies are paying Bay Area office rents and paying California-level taxes? It’s not ok to not take a market rate salary, but it is ok to have an office in the most expensive zip codes in the country? Does physical proximity to SV make a single bit of difference to a company other than being close to investors? Unless a company is actually making in-person sales calls, why would the Bay Area be relevant? In terms of acquisitions, it matters not if the company is in Mozambique or Cupertino — the balance sheet is really all that matters.
If the goal is to extend runway, why isn’t YC encouraging founders to set up shop in Texas or better yet be fully remote? When a house in SV costs 5 times more than a house in Texas, it’s pretty hard to expect founders to be able to survive on anything less than market rate.
Companies only have to be in silicon valley for the three months of YC. After that, you're welcome to move to an inexpensive area, and many companies do.
If the goal is to extend runway, why isn’t YC encouraging founders to set up shop in Texas or better yet be fully remote? When a house in SV costs 5 times more than a house in Texas, it’s pretty hard to expect founders to be able to survive on anything less than market rate.