[alpha_squared]

It's a little unfair to blame startups, they largely just set up shop where the capital is. Most VCs required startups to be headquartered near by for easier management/communication. The tech scene in SV had such exceptionalism that it quite literally viewed any startup not in SV as an inevitable failure. Even YC mandated startups be in SV.

[csomar]

Not sure why you are down voted. This is a requirement for many of the VCs in the valley. You have to be both US-based and “nearby”.