I always tell entrepreneurs outside of the Valley–whether they are in the middle of my country or a developing one–if they want to build the next great social media darling aimed at a Western audience, they’re probably better off moving to the Valley.
It’s not that you can’t do it elsewhere: The right entrepreneur at the right time with the right opportunity can largely build a great company anywhere. But in the Valley it’s easier to get funded, find the right talent and get acquired–which are three things most high-growth startups are going to need. In this new media game, connections matter at least as much as the best features and technology.
So with that in mind, I get excited when I see other countries exploiting holes that the Valley just isn’t going to tackle. One of those is mobile apps for non-smart-phones, as I’ve written about at length. Another is online education.
Online education was tried and mostly failed in the Valley in the late 1990s, with University of Phoenix a rare billion-dollar-plus win. Rosetta Stone is one of a few examples that’s made it big since, and despite some awesome software that approaches language learning in a new way, the company has still floundered since going public in 2009. Its stock is off its lows, but hardly soaring.