[ninjaroar]

It might make sense if you are bootstrapping and Phoenix is a place you want to live. (It is too hot, too conservative, and too suburban for my taste)

But if you try to raise money, you suffer from a valuation penalty for not being in Silicon Valley - just from the fact that there will be fewer interested investors. That valuation penalty is probably going to far exceed the cost savings of being outside Silicon Valley.

[BannedInSweden]

Yes... if only there was a technology that let us communicate with investors in other places... or better yet some sort of modern flying machine that could take us there!!