"I love San Francisco. I moved here from the UK about 4 years ago to start my last company, DailyBooth. It’s a wonderful city filled with interesting people doing amazing things. It’s the city I grew up lusting over and when I moved here I wasn't disappointed.
If you’re doing a start-up and planning on raising money there’s probably no better place in the world to do it. However….
If you’re trying to bootstrap, being based in San Francisco is awful.
It’s no secret that rent in San Francisco is starting to get a little crazy. After living here for a while you start to lose context. Let me give you some.
The average price of a 1 bedroom apartment in San Francisco is now $2,800 a month. This is for a pretty standard, unexciting, ~700 SQFT space. That’s $33,600 per year. The average yearly income in 2012 was $44,321. I’ve been here for about 4 years. 4 * $33,600 = $134,400.
Enter St Louis.
The average rental price for a 1 bedroom apartment in St Louis is $720. 3.8x cheaper than San Francisco. Moving to St Louis is going to almost quadruple my company’s runway. You can buy a really nice 1 bedroom apartment in downtown St Louis for less than renting in San Francisco for 4 years."