I recently discussed how Startup Communities are Neighborhoods, Not Cities, building on Brad Feld’s thoughts on the role of “Entrepreneurial Population Density” in accelerating startup activity and success. The SalesLoft team, fresh back from TechStars and Boulder’s vibrant startup community, have been riffing on these topics as well.
The clear truth is that cities with the most effective startup communities are build around physical hubs. Atlanta, consistent with its’ urban sprawl, has attempted to scattershot its startups across the city and drive around and hit meetups to build community, but three potential startup cores have been identified – Buckhead, Westside, and Midtown. I’ve done startups in all three areas, so I can speak with some knowledge on all 3.
Let’s first take a look at criteria that can make a great startup community:
- Density – Feld suggests that the “total number of entrepreneurs and employees of entrepreneurial companies divided by the total number of all employees in a region” divided by the size of the region. More entrepreneurs surrounded by fewer non-entrepreneurs in a small area gives much more opportunity for intentional and serendipitous events that help startups. Related but separate is:
- Walkability (within the community) – being close together is more effective if there are reasons and room for people to walk around and meet people beyond just people they have specifically scheduled time with. People often walk to:
- Meeting Spaces – formal and informal. Free or cheap spaces for small meetings and preferably for larger meetups make it easy to gather people who are just a walk away. Coffee shops, preferably good ones, and affordable, decent restaurants are good for meetings and helpful in recruiting. Some of the people you want to recruit are:
- College Students – Proximity to young talent can help startups staff up, but proximity to startups can also help students get excited about awesome career options besides larger corporate jobs. Colleges are a home of future founders. Some college kids have cars, some don’t. Either way,
- Transit and Transportation – are important. Students and many younger potential startup workers prefer to walk, bike or take transit (preferably trains rather than buses). In a city where some people choose to live 45+ minutes from most startup jobs, you can’t please everyone who drives their commute, but the more people who can do a <30 minute commute, the better. Some work can be remote, but before product-market fit, it helps to have good:
- Work Spaces – Companies need room to start, and room to grow. A variety of office space, preferably creative space, older buildings, higher ceilings is nice. Flexible lease terms are nice, but challenging in a town where few commercial real estate agents understand startups and insist on a 2 year minimum lease. Free space is nice, but startups who will choose free workspace outside of a community rather than paying a few bucks a month for space within a community just don’t understand the value of community. Free and cheap space within a community is best, but in Atlanta, most of our rents are cheap compared to other startup hubs.
So where does this leave Atlanta? Some thoughts based on my experience:
Buckhead is a finance and real estate neighborhood that tolerates startups. The best office space is designed for high-end law firms. Lesser office space is designed for lesser law firms, and still feels oppressive for startups. There are some great companies, solid transit access for intowners and college kids, but a crummy commute for most drivers. Meetings spaces are corporate and overpriced, and ultimately, any startup density is overpowered by those seeking to set up shop in Atlanta’s most prestigious business district. In my 2 years working in Buckhead, even walking to meetings and lunch, I don’t think I ever encountered someone from the startup ecosystem unless I planned it.
Westside oozes cool. I wish I could crown West Midtown as Atlanta’s startup epicenter. I’d save 2 hours a week on my commute, have awesome office space, and enjoy some of Atlanta’s best food at my lunch meetings. This neighborhood is NOT walkable. Not without a concealed carry permit. Apart form being sketchier, there are geographic factors that make density VERY difficult in this area. You could pack most of the office space over here into a single office building in midtown or Buckhead. Octane Coffee might be THE best serendipitously cool meeting spot in town, with great coffee. Transit access is awful. Meeting space for larger meetings is hard to come by without ponying up.
Midtown is anchored by Georgia Tech and ATDC. Some people wish that we could escape from the state-sponsored influences, and while ATDC’s office space is suffocating and sterile, it also concentrates some of the best startup talent in Atlanta, including tentatively acquired BLiNQ Media and $3.75 million funded consumer health care revolutionaries PatientCo, as well as so many other companies I expect, GREAT meetups, and excellent mentors and advisors. Atlanta’s marquis startup accelerator, Flashpoint, is down here. I’ve chosen to run Badgy out of Hypepotamus, one of THE best free working spaces and meetups spots I’ve seen. Georgia Tech students can walk to this area. Whenever I walk to a meeting in this area, I see people, especially at the Tech Square Starbucks. I wish we had better coffee shops with better coffee and without long lines of students, but I truly believe that this would be the best spot in Atlanta for an unfunded, hungry entrepreneur to spend a week working and meeting people. The casual relationships built in this neighborhood, over time, are undeniable.
Thoughts on other areas:
Decatur – driving to Decatur from anywhere else in town is a horrible experience. Game over.
Dunwoody – lots of other businesses, unwalkable, limited student access, and horrible commutes for many
Galleria / Vinings – NO transit, not walkable, very corporate, no students. (I worked here too, LOVED the commute, but it’s not a startup area)
“Technology” Park – Undrivable, unwalkable, no students, no meetings, no density. I don’t understand.
Alpharetta – 30-60 minutes from everywhere else in town. Could become a secondary startup core, but we need a first core first.
Old Fourth Ward – MAYBE in 10 years, if Atlanta has the courage to build comprehensive rail around the Beltline
This analysis is ALL about finding the best advantage for young startups that need every advantage they can find. Proximity to knowledge, resources, and people is a MASSIVE advantage. Startups that have found product-market fit often relocate outside of the core startup neighborhoods, and that’s fine and expected.
So what do you think is the best neighborhood for Atlanta startups to rally in and thrive? Why? What criteria did I miss?