The fact is if you are building a consumer startup & you want to get big, you're going to need funding unless you want to charge people & curb your growth.
If you want to increase your likelihood to get funding, you have to be here in the Bay Area.
The odds of getting VC are low -- only 1 in 400 pitches result in funding. [1] Of course, this number doesn't include the number of people who were rejected before they even had a chance to pitch a VC.
I'm not sure why charging people is considered to be a shocking idea. A business is supposed to charge people, or find another way to make money, such as smothering eyeballs with advertising. I'd rather have a profitable company that has positive cash flow and a sustainable growth rate than a "big" company with a ton of freeloaders and external investment.
If you're going to cite Twitter and Facebook as an example, the odds of you creating a similar company are akin to finding Willy Wonka's golden ticket.
VC just isn't available or necessary in the vast majority of cases, negating the need to be in the Bay Area. Bear in mind that VCs are all over the place, from Boston to New York to London. The benefit you cited elsewhere that it's fun to be in the Bay Area is, however, the most compelling.
The only true blue benefit I can see to even being in the US is access to better payment solutions, and possibly a culture that better supports brazen entrepreneurialism.
"I'm not sure why charging people is considered to be a shocking idea."
A few thoughts. One obviously is taking the social proof of what others are doing and copying it.
The other is that "if you don't have anything good to say, don't say anything at all". So having revenue of $0 is better than having revenue of $15000 (2nd number arbitrary just trying to illustrate that by showing a number you are likely to be judged differently then if you never charged at all and can point to eyeballs or signups and have the focus on that).
"If you're going to cite Twitter and Facebook as an example, the odds of you creating a similar company are akin to finding Willy Wonka's golden ticket."
Most people I know doing startups especially in the Bay Area want that golden ticket. Odds are very low but that's what people aspire for.
Taking it to basketball analogy.
There are millions of basketball players out there and all of them aspire to one day play in the NBA. Chances are slim since there are only about 450 players in the NBA in a given season.
"The odds of getting VC are low -- only 1 in 400 pitches result in funding"
But you are pitching more than 1 VC.
Rose said "VCs invest in roughly 1 out of 400 companies who pitch them." and it's obvious he means "an individual VC".
Most importantly (something I try to point out with respect to dating as well or anything where success is essentially "1") you are looking for 1 person/firm to believe in you.
If you want to increase your likelihood to get funding, you have to be here in the Bay Area.