I think most investors would agree with this entire post... EXCEPT for one point. I think if you asked the top Valley investors what they thought of the "Scale up and out" point (tl;dr Dave is contending that the valley is getting comparatively less important, geographically speaking), I think they'd almost universally disagree. This is a big bet from Dave/500s. As someone who doesn't necessarily love living in the Valley, I hope he's right. :-)
we are still allocated 50-25-25 valley-restofUS-RestOfWorld, so at the moment 1/2 our deals are in California. but due to prices being somewhat overvalued here, as well as comparatively inexpensive in other places, along with potential for growth in emerging markets, yes we are planting seeds for the future we think will reap benefits 3-5+ years out. we think it's a pretty decent strategy, but only time will tell.
