[mikeyouse]

The success of Silicon Valley isn't limited to the tech workers though, the entire infrastructure of the area is designed for startup success. All the financiers, lawyers, professors, etc. are 'lazy' in the sense that they prefer their companies and investments to be close to where they live.

There is ample supply of tech workers / infrastructure in NYC, Boston, LA, but the list of cities is a short one. There will absolutely be more companies formed outside of the SV area, but there is still plenty of room for growth here as well. There are a half dozen cheap communities in the East Bay which still have low housing costs, plenty of commercial vacancy, access to public transit and are actually a closer commute compared to driving to San Francisco (with Palo Alto as a center-point).

I have personal experience with two similar companies, one in 'Silicon Valley' proper and one in the East Bay. The company in SV had more employees by a factor of 2x, but was paying 15x more in rent for their commercial space! Both were backed by Sand Hill VCs and had professors from Stanford / Berkeley involved in the efforts. This could just be another data point in the "SV is too expensive camp", but it also points to the affordability of nearby areas which haven't seen the same level of expansion yet. Look up commercial / industrial real estate in Newark / Fremont / Hayward / Milpitas, you'll be shocked at how affordable it still is.

You don't need to build cities from the ground-up to have a climate hospitable for investment and venture success, it's much easier to be proximal to where such a place already exists.