[johnrob]

Investors are gamblers, and gamblers look for good odds. Until we can prove that the odds of success in the Bay Area are not better than other places, we'll have to often deal with required local operation.

Lots of folks who aren't already wealthy would prefer living elsewhere (unless you like places with Manhattan-style prices, but no Manhattan-style amenities).

[sid_viswanathan]

Do you really believe that the odds of success outside of the SF Bay area are equal to the odds of success in the Bay area?

[qq66]

That's not really the right question -- it's more about the investment opportunities inside and outside the Bay Area. In SFBA, there are so many startups that if you're a median investor you are investing in perhaps the 1000th best opportunity in the area. If you are willing to invest in a place with fewer investors, you may be investing in the 1st-5th best opportunities in say, Jacksonville FL. However, that assumes that it's possible to rank order these a priori, and more importantly, that you can serve your portfolio companies as effectively when remote (you can't).

[krschultz]

I think there are other places that can be equal. I would think that includes Boston, New York, Boulder, and maybe a few others. They key is a support network of entrepreneurs and potential employees with an interest in/experience in startups.

On the other hand, starting your business in a random town probably won't have great odds.