Trying to win a competitive Series A against a firm like Sequoia is nearly impossible for a smaller fund. Top firms leverage an overwhelming arsenal of social proof, including board seats at the world's most valuable companies and references from iconic founders, creating an insurmountable competitive moat.

The greatest danger of building outside the SF bubble is not a lack of capital, but the absence of a peer group that normalizes struggle. Without that support, founders are more susceptible to the surrounding skeptical culture and more likely to give up during inevitable downturns.

A European founder targeting the US market shouldn't dismiss European VCs. You might be the top priority in a European firm's portfolio, receiving more attention and support than you would as a lower-priority deal for a top-tier, oversubscribed Silicon Valley firm.

Despite strong early metrics, Huntress was rejected by over 60 VCs for its Series A. The primary objections were its SMB focus, its Maryland headquarters (outside Silicon Valley), and its fully remote model in 2018. This demonstrates how VC pattern-matching can cause them to miss high-growth opportunities.

The potential exodus of VCs to tax-friendly states like Florida doesn't mean Silicon Valley is dead. Instead, it could lead to a decoupling where startups remain in talent hubs like the Bay Area, while founders travel to distinct fundraising hubs—like a 'Sand Hill Road in Miami'—for capital roadshows.

The abundance of capital has shifted the VC mindset from serving founders over a decade to simply "winning" the next hot deal. This transactional approach is misaligned with what founders truly need: a committed, long-term partner who puts the company first.

Top-tier venture capital firms are developing internal platforms with such demonstrable results and strong reputations that founders choose them over competitors offering higher valuations, seeking access to their unique support ecosystem.

Series A is a brutal competition where top-tier firms have an insurmountable advantage. Their brand and network are so powerful that if a smaller fund wins a competitive Series A deal against them, it’s a strong negative signal that the top firms passed for a reason.

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.