Epic Inflation in Silicon Valley: Comparing Startup Costs and Valuations 2005 vs 2012

Jason Lemkin analyzes significant cost inflation across Silicon Valley from 2005 to 2012, observing that seed/Series A valuations, real estate, and engineering salaries have roughly doubled while Series C valuations have grown similarly. Despite these increases, he argues the opportunity is justified by the 10-20x growth in the overall SaaS market, creating favorable conditions for startups despite higher operational costs.