Disruptive Proactivity

All innovation comes from people who give a damn also being able to do something about it. Cambridge isn’t lacking people who innovate; the unanswered challenge is where can they afford to sleep while doing it? The current answer is “somewhere else”. 

What a UK venture capitalist actually does is move money from limited partners to landlords – San Francisco suggests 30% of VC cash goes that way (and that probably doesn’t include staff salaries spent on rent?)

The tech lobby group “Innovate Cambridge” seems to be assuming that companies will be formed in Cambridge then move to Manchester to grow so they can afford space to work, and their staff can afford a house for their family. It’s better than the SF equivalent.

Manchester has the metrolink and train stations; Cambridge has bicycles. Manchester has nightlife, non-tech industries, and hills; Cambridge doesn’t have hills, but does have cows, commons, and dentists. Etc.

The constraint isn’t innovation, it’s retention of innovators, especially those who don’t have wealth to burn while they figure it out.

Having lived in Manchester and Cambridge, some thoughts on what questions the collaboration might want to have some answers on.

Differing Cost of the same business?

For a business, especially a startup which has more equity than cash, the cost of living of staff has a large impact on cash flow and runway. The more rent and expenses cost, the greater the need for staff to have cash salary to cover it and the less they can be paid in equity, which makes the company burn cash faster, and be less likely to survive.

The Manchester side of the innovation partnership should publish a public assessment for a few different industry sectors, using real examples where they can get them, comparing the cost of doing that business in Manchester vs Cambridge:

• What’s the rent and public transit travel time for an equivalent office / lab / light industrial office either near the centre, or at the commutable fringe?
• What’s the option of rent and house prices for staff to live and work, and have a work-life balance they want?

Cambridge may be the place that founders might meet, but Manchester may be where their staff can probably afford to live – what is the effect of current house prices on salary needs (for rent+life) of staff at startups which have limited runway?

After the election

With an election ongoing, perhaps parties will consider how to fund Manchester’s public service, and also make it so children who currently live in Cambridge will be able to afford to live here if they want to in future.

Manchester and Cambridge both have their own multi-century heritage and traditions. A company moves on, but the place endures. Having a government that cares about either place will be an improvement.