What is great about successes, are the long tails. The word and concept “long tail” became popular in 2004 after Chris Anderson wrote an article in Wired about some of the newest large businesses such as Amazon and Apple, applying the theory to their businesses. The term has been studied since 1946 being applied to finance and insurance businesses.
We have seen successful start-ups grow and lose some of the original people that have either vested their shares or are just ready for the next challenge. They leave to go out and start other companies that have also become successful. Etsy spun out handfuls of super smart people who have gone on to become part of the start-up ecosystem of NYC, building businesses and creating companies and in turn providing new jobs. We are seeing in LA too with people who have left Snap and will see more from other successful companies in both cities.
That long tail will leave these cities even more vibrant in the start-up community over time. After all, SF investors have been investing in the next generation of companies from the last success for decades. Look at the amazing companies from the people who came out of Oracle. Yet it is happening in other verticals that are giving economic upside to other cities.
Noma, in Copenhagen, is a perfect example. Many of the people inside Noma have gone on to start their own restaurants. We are seeing that in NYC and LA as well as other cities as food and restaurants become more than just places to eat but are trying more to become experiences and communities.
I am definitely obsessed and curious about the long-tail of everything.