Remote work’s benefits to startups include hiring competitiveness — engineers increasingly prefer remote work, and more talent is available by considering remote employees. However, in-person work arguably enables more effective collaboration, spontaneous idea generation, work ethic, and creativity — items which are of top priority to startups where every bit of increased productivity and performance makes the difference between success and failure.
While I of course do not expect any conclusive decision either way, I want to open the floor to debate on this topic. What, to you, is better — building a startup remotely, or in-person?
Solo founder? You are by default "remote", unless you're a butts-in-seats type of manager. Two co-founders either both technical or both business? Probably remote. One technical, one business? Maybe consider colocating, depending on trust levels, communication styles, etc. Three co-founders? The "maybe" gets stronger depending on the communication overhead.
Communication style and skills: the better your team is at asynchronous written communication, the easier fully remote work will be.
Cultural diversity: Some kinds of cultural diversity require better communication skills to bridge successfully, for example guilt vs. shame cultures. This is not necessarily easier to do in person, but it may be easier to recognize a problem (empathy is generally easier f2f).
Introverts will usually work better remotely (possible exception: if they can have a private office), while extroverts may wither away or just find it harder to stay engaged without in-person contact.
Etc.
There are so many factors, and so many caveats, that it really does boil down to "it depends".
For me, I'd go 100% remote from the start. Looking 1 year, 3 years, 5 years out, 100% remote is the future for many companies. Covid accelerated this process, and the next pandemic is inevitable. Cost of living is outrageous in most tech hubs ($2.8 million for a 60 year old 3 bedroom house in Santa Clara!) and you'll have to pay more to recruit if you don't go remote. It's better for me to build that into the DNA of the company from the start.