Tomasz Tunguz Blog · 2017-07-25
· 3236d
Labor Arbitrage as a Solution to Silicon Valley's Cost of Living Crisis
As San Francisco's cost of living becomes untenable for startups, founders are increasingly adopting labor arbitrage strategies by distributing teams across lower-cost geographies like Portland, Vancouver, Toronto, and Beijing. Improvements in remote collaboration tools and the success of distributed team models have made this approach viable, while offering startups tax advantages and solutions to visa challenges.
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