This breakdown is characteristic of software startups, not SV in particular.
I was involved in the Web startup community in St. Louis, Missouri for years before moving to SF. It was the same for those companies: salary costs dwarfed all other costs.
Unless I'm mistaken, workforce is the largest single expense of most businesses, not software startups in particular. If anything, as a percentage of operating expenses, 52% sounds kind of low.
I was involved in the Web startup community in St. Louis, Missouri for years before moving to SF. It was the same for those companies: salary costs dwarfed all other costs.