It's incredibly rare for startups to fly people around the world in business class. And I say this as someone who flies long-haul exclusively in Business and First—I still would never expect my employer to put me up in business. As a personal decision, it can make sense. I'll buy the fare outright when it's $3,000 or less for an international round-trip, and I make sure of credit card points and frequent flyer miles.
If I worked for a big public company, I'd expect them to put me up in business for anything longer than 6h. For a young small startup, I'd expect them to put me in a reasonably convenient economy ticket (e.g. not flying out of OAK instead of SFO, and not forcing me to take long connections, or really ultra-low-cost carriers like WOW Air).
I am trying to learn about the business habits in the Valley. I wish someone could inform me.
To answer your question, obviously I am not from the valley, i run my own business, it is quite profitable, i don't do retreats, and i fly quite a bit, always coach. So if i ever organised a retreat, i would expect everyone to fly coach. Hence my question.
FWIW, the US Government's regulations for civil service workers (civilians working for the federal gov't) are pretty strict, and are often used as a basis for private companies. (EG, mileage reimbursement is usually a rate set by the feds.)
Their policy is business class for international flights over 8 hours.
Given that, I think it would be seen as common/acceptable to mimic.
I know we didn't send our guys over to Iraq and Afghanistan in business class. It's shameful that a rando in USAID or something would be afforded better accommodations for a conference in Tokyo.
Keep in mind: government employees who travel international are often diplomats. Gov rates for diplomats are, overall, luxurious. (I'm not sure of the bleedover here, but would not be surprised.)
Above comment about business class / direct for long trips, and at least direct/convenient economy for ~startups (not 2 guys & a laptop) sounds right.