The San Francisco Bay Area is an epicenter for startups. As 13.5% of all global startup deals take place in the Bay Area, it’s no wonder that new startups are attracted to this lucrative city.
But San Francisco is also an expensive place to live and work. The average rent for a 2 bedroom apartment in San Francisco is $3,100/month, $1,550/person/month or $18,600/year.
Whereas the national average rent for a 2 bed is only $1,194/month, $597/person/month or $7,164/year.
Meanwhile, it costs an average of $13,032/year/employee to rent office space in San Francisco. A 10 person startup, therefore, would pay $130,320/year on office space for their team.
If we combine office space and apartment rental costs, a startup founder in San Francisco would need to pay a combined $148,920/year, on average.
An alternative option for startup teams is to live and work together in a coliving space. Startup House in San Francisco, for example, costs $980/bed/month, or $11,760/year/person on average, to live and work in their Menlo Park location.
By choosing to live in a coliving space for your startup team in San Francisco, your company could save well over $100,000 in office space rental payments and your team members could save thousands in rent.
Not to mention, startup teams can be especially productive in coliving spaces that are uniquely designed to cater to the startup environment.
Read on to learn about why startups move to San Francisco in the first place, how startups can afford the Bay Area and how to make the most out of the coliving experience in San Francisco as an entrepreneur.
Why do startups move to San Francisco?
Silicon Valley is a hotbed for innovation. It rose to fame after many technology superstars created ingenious businesses that disrupted the market.
Facebook, Apple, Google, Sony, and Tesla, some of the biggest companies in the world, are only a sampling of the big names headquartered in the Bay Area.
There is an enormous amount of investment opportunity for startups in San Francisco.
If it were its own country, California would be the fifth-largest economy in the entire world.
As investment coalitions are so important to business growth, centering your startup in the midst of so much capital is a no brainer.
In the same vein, as so much investment capital is available there, the city is ripe with networking opportunities that can lead to lucrative investment deals and valuable partnerships.
Basing your startup in San Francisco gives you a substantial chance to attract local talent to your business, in the manner of both consultancy and employment.
Coliving spaces for startups, for example, have unique connections with local investors and top talent. Coliving space teams host several networking events each month to help bridge the gap between their resident entrepreneurs and local experts.
San Francisco, in general, is also home to many product fairs, workshops, and seminars that startup teams can attend and learn from.
Access to this free flow of useful information and resources is a big part of why startup teams choose to base themselves in this cutting-edge city.
An innovative environment
Starting a business in the presence of greatness is a goal that many entrepreneurs aspire to achieve.
You can practically smell the passion, innovation, collaboration and genius of startup success in San Francisco. It’s infectious.
Positioning your business in the hub of startup innovation can be essential to daily motivation and throughput. As success breeds success, startup teams can greatly benefit from surrounding themselves with other risk-taking, inventive businesses.
As mentioned above, many coliving spaces host weekly networking events. While many are focused on linking entrepreneurs with investors, others are focused on connecting startup founders with experienced workers. These workers can act as mentors to startup founders, or even offer consulting expertise to aid developing ventures.
In San Francisco, you’ll feel inspired to work harder than ever before, knowing that helpful advice and advantageous partnership affiliations are literally around the corner.
How can startups save money in the Bay Area?
As mentioned at the start of this article, coliving spaces are the best way to save on both living and office space costs.
Live and work in a coliving space
The modern coliving movement is rising to popularity, especially among entrepreneurs and startup teams. Many coliving companies designate their spaces for startup founders and their teams who are looking to live and work together in a productive and motivating environment.
These spaces come equipped with coworking units that are designed with productivity at top of mind. The coworking spaces are often separate from the rest of the house to minimize distractions and boost concentration.
Many even have private meeting rooms for residents to take private business calls or group meetings in. These ergonomic spaces are built to influence productivity and focus.
Coliving spaces are much more affordable than renting an office space or paying for a serviced coworking membership for your team.
Collaborate with local businesses
Besides living and working together in a coliving space, startup teams also have countless occasions to collaborate with other businesses in San Francisco.
There is strength in unity, and tapping into this local industry database can be hugely beneficial and cost-saving.
For example, if a tech startup company needed advice on the best cloud services to host their platform on, they could reach into the local flourishing tech marketplace to seek guidance.
It’s highly possible that a business with cloud services expertise will run in similar networking circles as you. And if not, there’s an equally strong chance that somebody you meet at a local networking event, either hosted by your coliving space or one you attend independently, will know a local business who has the knowledge-base you’re looking for.
This type of readily available business collaboration can help startups save time and money. Rather than spending valuable resources gathering this information from foreign networks, startups in San Francisco can reach across to their neighbors and find exactly what they need in half the time.
How entrepreneurs can make the most out of the coliving experience in San Francisco
Besides cost-saving, the best part of the coliving experience as an entrepreneur is access to a pool of talented professionals.
Every startup founder in San Francisco is motivated to succeed. As the Bay Area and Silicon Valley are the Olympics of startups, the bar is set high.
Most startup founders who choose to build a business in San Francisco are supremely driven to materialize their concept into a fruitful venture. But many don’t do it alone.
The entrepreneurs who occupy coliving spaces draw inspiration from one another. They live, work and play together, giving them ample time to discuss both work and personal goals throughout their days.
That’s why the startup teams who move into coliving spaces begin to view rent as a business investment. As rent in this scenario applies to both living, work and office expenses, its definition broadens.
The key is to not spend 100% of your time on your startup. Downtime is incredibly important in order to give your brain a rest and allow for new ideas to simmer.
One of the most intriguing reasons to move into a coliving space as an entrepreneur is the ability to socialize in a relaxed environment with a group of passionate individuals.
Some of the best ideas are born in moments of intermission, rather than in intervals of focused work. A casual chat over a meal may spark that lucrative idea you’ve been pondering but couldn’t quite bring to fruition.
How can you gain the most from your coliving experience? Place equal value on “off the clock” moments as you do on fixated productivity.
Get to know your housemates on both a personal and professional level. You never know what moment may inspire your next great idea, whether it be in your personal life or business endeavor.
Finding the perfect coliving space for your startup in San Francisco
New startups in San Francisco thrive when they move into coliving spaces and connect with the vibrant startup ecosystem.
Coliving networking events are a great way to collaborate and form connections with businesses, talent and investors. These partnerships are key to consummating success and saving money in the process.
Find the perfect coliving space for your startup team in San Francisco today on Coliving.com. Scroll through dozens of verified listings and choose custom filters to find exactly what you need.