Tak Lo describes himself as the co-founder of a stealth startup. In his first column for Tech City News he explains why East London’s Tech City isn’t for everyone.
Startups shouldn’t just flock to Tech City
I confess – maybe I’m just not that cool. I work at Baker Street.
Now before you judge, I’m told Jimmy Wales works around here (though like the infamous Yeti I have yet to see him). Tyler Brûlé, from the magazine startup Monocle, used to frequent a Japanese restaurant located about 2 minutes away.
But other than that there’s hardly a startup here, sadly.
Tech City isn’t right for everyone
I do have to say, however, that Tech City isn’t right for everyone. Yes, that’s right, I’ve said it.
And before TCIO jumps on my back, let me try to explain a bit more.
Tech City has its clear advantages
If I were further in my startup, I would most definitely work in the Tech City area. Other than the fact that if I didn’t the TechBikers tag-team of Ben Southworth/Pru Ashby would kill me, there’s the built-in ecosystem that exists there, from Google Campus to Central Working, General Assembly to TechHub.
That essentially means that all the important tech people one should meet are there or moving towards there, and allows a certain serendipity to happen when meeting a next employee, investor, or advisor.
The costs of staying within Tech City are also very favorable. I’ve heard of hot desks for £200 around Hoxton Square, which is ridiculous for prime real estate like that. And the food options are plentiful and cheap.
Finally, Tech City doesn’t close early like other parts of London. Working on the site redesign and finishing up at 11 PM? There’s Hoxton hotel around the corner for a bite (or Chicken Cottage).
Need to pop over for a quick drink and rehearsal to discuss tomorrow’s investor pitch? There’s McQueen or Shoreditch Grind.
It really boils down to where you are in your startup
So though I wax poetic about Tech City, why am I at Baker Street? For one, as part of the London Business School Incubator, I have access to its free facilities, knowledge base of great professors, and wealth of MBA talent.
Second, from a commuting perspective it only takes me 30 minutes from door-to-door.
And third, the team is concentrated around the area, which makes late-night work sessions (like the one last week) such a breeze to plan.
But I also work under the circumstances that I’m currently in.
I’m a pre-product/market fit entrepreneur, still trying to keep costs lean while iterating and pivoting incrementally. Prime office space, once a basic requirement of my corporate days, has become a luxury; if not at LBS, my office, meeting room, and office cooler is Costa Coffee, all rolled up in one.
For us, there is one big advantage with being away from Tech City.
Most importantly, our team can concentrate on being efficient and productive, since there are less distractions and coffee chats scheduled. This is especially important for a young team such as ours as we learn and grow together.
Though the appeal of working with other like-minded entrepreneurs and hipsters is grossly appealing, it’s simply not needed at the moment. Call this Lean philosophy, minimalism, or good ol’fashioned Army logic, whatever is not ‘mission critical’ is discarded.
Other startups are based away from Tech City because it’s not right for their business or team. ubiCabs is in the Oxford Circus area because the location is easier for their team to commute into work. Babelverse, a Startup Chile and 500 Startups company, has free space in Camberwell and goes into Tech City only when needed.
Some startups choose other parts of London because their client base or their business reputation needs to be tied with a certain area.
So don’t join Tech City just because it’s cool.
Be strategic – is it the best option for your startup or for your team at the current moment? Because if not have the strength to walk away.
Tak Lo is the founder of Travelst, and can be found on Twitter as @tak_lo