Run for the hills? My friend John M. would like you to do so, as would I. An article in yesterday’s WSJ titled Why College Towns Are Looking Smart summed it up: college towns such as Austin have a highly skilled work force and a sense of “communiversity” which encourages and supports economic growth. A Harvard economist commented, “Apart from weather, human capital has been the best long-run predictor of urban success in the last century.” Austin seemingly has it all with pleasant weather (summers are a bit hot), a world-class university (UT, ‘nuff said) and solid infrastructure (urban core, public rail on its way). Austin also has local funding sources, both public (e.g. the Texas Emerging Technology Fund and university endowed funds) and private (Austin Ventures, Silverton Partners, Hunt Ventures, etc.). While there is arguably more intellectual and financial capital in the Valley (Stanford, Cal and the myriad venture funds), there is a lot to be said for what’s right here in Austin. I am interested to see the success of Austin’s newest incubator, Capital Factory, compared with the likes of Y-Com and TechStars. Austin has been on the map for a long time, but the dot is getting bigger every year.
