But it is an important metric for firms in pursuit of explosive growth. Raising capital is a necessary step, and survival time without it grows short, or interminably long. That extra two months spent traveling to fundraise is two months falling behind.

It decreases your odds of being bought. When it comes to the technology ecosystem, clusters are vital. Wessel measures a 39% acquisition advantage to being in-state. Tech companies see engineers move frequently, integrate their products tightly, and often find themselves acquiring or merging with counterparts. Personal relationships do count.

It decreases your odds of success. If you judge entrepreneurial success as surviving or selling (including raising follow-on funding, being bought, or successfully IPO’ing) as no doubt your investors do, then your odds of success are 10-15% higher inside the realm of the super-hubs. That’s not a big margin, but every little bit counts in this space.

But this measurable difference in outcomes, however significant, is not stopping aspiring entrepreneurs from building businesses where they live today. There are many good reasons to do so. Entrepreneurs cite family roots, a sense of neighborhood responsibility, existing professional networks, and more.

In fact, according to Wessel, following the recession, startups are mushrooming up everywhere. Since 2006, the number of startups founded and funded outside of California, Massachusetts, and New York, has grown by almost 65%. So don’t let location hold you back, but you need to go in with your eyes open. It takes more than a dream and passion to build a business.

As read on Startup Professionals Musings.