If you can’t even negotiate your office space agreement without getting taken, you are not an entrepreneur

After reading this article on valleywag about the founders of Bloodhound paying an astronomical rate for their office rent (and agreeing to a 5 year term), all I have to say is these people should not be in control of anything much less a company.

  • This continues to demonstrate the wisdom of “diversification of location”. The Net is vast and fast and there are locatios all across the country (world?) to locate a business. Our neodymium, rare earth magnet re-use / recycling company is in Marietta Ohio. $2 sq ft per year, tax incentives, accelerated depreciation for equity investors, within 500 miles of 80 % of consumers, scenic beauty, large turn of the century homes on double lots for $170k………

    Yet we are close to the ATT C.O. and the fiber connectivity rocks, the list of why a startup and investors money SHOULD NOT be in SF is too long for this forum.

    Mr. Thiel, your capital can launch 11X the number of companies if deployed in, around & inbetween Columbus, Nashville, Charlotte, even crusty old Cleveland is cool now with blockbuster movies filmed downtown.

    I also guarantee the regional Angel, VC community is fairly clueless and slow, you can snipe away all of their deal flow in half a heartbeat.

    WTF do I know, I buy clothes at Goodwill ………… Cheap bastard


    • When I saw that those guys paid 5X more rent I LOL’d–then I realized that the startup I worked for was paying nearly as much money for an office in BFE with no amenities that wasn’t anywhere near San Francisco or New York or DC or even Atlanta. We paid nearly $25,000 for two suites, and one of them we had moved out of three years ago.

  • I really wanted to be able to post a comment on Valleywag:

    Wouldn’t it be cool if Bloodhound (in the Events Business!) had formed a relationship with Million Fishes and shared the space?

    Imagine the goodwill generated in the Arts Community and the boost to their brand by sponsoring Arts Shows?

    Imagine working in a space filled with creatives, when you are creating something as well?

    Fail fast? I don’t agree with this mantra, but . . . indeed.

    • who gives a rats ass about the art community? honestly. that would just be a complete waste of time to foster a relationship that has no value for any startup outside of something truly art related. These guys needed to book huge events, not small gallery showings (of which they couldn’t even afford to pay more rent, so you can see how well entrenched that business model is)

      • They might have split the rent or otherwise lowered their cost and done something for the community at the same time. That’s the problem with some financed startups. They stop thinking like startups and spend like have already had a $1Billion exit.

  • I used to work upstairs in the same building as bloodhound. We are kinda envious of their nice space and the chef they hired to cook their meals. My office was less than $1/sqrt and has broken windows but I am sure my company does much better than these guys. We have real revenue and real customers and we spend cautiously. It was pretty hard for us to attract VC money but at least we live in reality.

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