[gamblor956]

I have asked that question, and 9 out of 10 said they would prefer California. Bigger market, better employees, better access to materials and cheaper, and better access to international markets.

Also, when I was still at a firm providing tax services to companies large and small (including a number of YC companies), I had more than a dozen clients move to CA from TX, and only one company move from CA to TX. They moved because Texas simply wasn't a viable place to do business unless you're in oil or energy (and the one client that moved there was in energy).

Texas is where companies go when they aren't strong enough to survive real competition.