Cape Town is a better location to launch a startup than Silicon Valley due to the greater entrepreneurial freedom it offers, according to Simon Anderson, founder of Video Agent.
Video Agent is a web video production house that makes low-cost marketing videos at a reasonable price.
Speaking to HumanIPO, Anderson spoke about his experiences exploring the startup ecosystem in Silicon Valley, and explained the lack of entrepreneurial freedom was what brought him straight back to Cape Town.
“Being an entrepreneur there is like having a job,” Anderson said, adding startups seem to be created and developed according to a template in Silicon Valley.
“Cape Town is still a lot freer,” said Anderson. “It’s going that way because people are copying Silicon Valley, but right now it’s freer.”
According to Anderson, Silicon Valley is an impressive environment but innovation is lacking, as demonstrated by the fact that Silicon Valley startups are similar to each other.
“Silicon Valley is great. It produces good startups. But startups which all seem the same,” Anderson said.
There are multiple benefits to launching a startup in Cape Town, argues Anderson.
“There’s more space, less competition,” he explained. “You’ve got to run to stand still there [Silicon Valley].”
In addition, the low cost of living and salaries, as well as access to an available talent pool, network and Africa, are reasons why Cape Town is the ideal base.
“You’re able to find talent here, and developed talent,” said Anderson.
“You have access to Africa, which is a huge developing market; and people will actually take your calls and meet with you here.
“The Cape Town network is smaller, which is actually a big advantage.”
