Thrive's initial success was fueled by its non-Silicon Valley location and young founder, which attracted contrarian talent. This "outsider" DNA became a core advantage. As the firm became mainstream, it had to proactively recruit non-obvious candidates to maintain this edge, seeking people who aren't necessarily looking to work there.

Despite YC's push to stay in San Francisco, Hera's founders are returning to Berlin. They believe they can hire top AI talent more affordably and with less competition than in the Bay Area. Since their product is global and consumer-facing, an SF presence isn't critical for customer acquisition.

Ramp's hiring philosophy prioritizes a candidate's trajectory and learning velocity ("slope") over their current experience level ("intercept"). They find young, driven individuals with high potential and give them significant responsibility. This approach cultivates a highly talented and loyal team that outperforms what they could afford to hire on the open market.

Aravind Srinivas intentionally avoids hiring candidates with established track records from large tech companies. He believes people hungry for their first major success are more motivated and better suited for a startup's intensity than those who may be less driven after a previous big win.

According to Y Combinator partners, the network effects and density of talent, capital, and customers in San Francisco are so powerful that being physically based there can double a startup's chances of reaching a billion-dollar valuation compared to other major tech hubs like New York.

High-growth companies create a virtuous cycle for talent. The faster a company grows, the more career advancement opportunities it creates, which attracts the best people. This influx of A-players then accelerates growth further. Conversely, stagnation creates a vicious cycle, repelling top candidates and making growth harder to achieve.

Perplexity's talent strategy bypasses the hyper-competitive market for AI researchers who build foundational models. Instead, it focuses on recruiting "AI application engineers" who excel at implementing existing models. This approach allows startups to build valuable products without engaging in the exorbitant salary wars for pre-training specialists.

Cities like San Francisco and New York act as global talent magnets because they project a powerful and specific "whisper," or core message, about what is valued there. For S.F., it's "build a startup." This clear signal attracts ambitious individuals worldwide who are aligned with that mission.

Instead of choosing between tech hubs like Austin and San Francisco, founders can adopt a hybrid model. Spend a concentrated period (1-3 months) in a high-density talent hub like SF to build domain expertise and relationships, then apply that capital back in a lower-cost home base.