[fiatmoney]

Madison, Wisconsin. The University of Wisconsin & the fact that it's a state capital generates a lot of cultural attractions, and you'll probably find it easy to hire some bright CS/engineering students if you get to that point. The core is very dense & walkable compared to other small Midwestern towns since it's on a tiny isthmus between two lakes (a nice geography too if you're into outdoor activities, although the summers can be surprisingly steamy & the winters are fairly cold). You can easily find cheap housing. Also only two hours from Chicago.

[helloimben]

Agreed 100% on Madison. It's is one of the most beautiful cities I've ever witnessed, and the culture there is energized and unique. I've had the opportunity to bootstrap my company there, and it's something I wouldn't have been able to achieve in many other cities, especial SF.

That said, I'm beginning to find the internet at large the best "place" to build a company. I've begun to realize that in many ways location has become less and less important to the potential success of a company. I'm experiencing this first hand, as are countless others around the globe.

[dbla]

I'd like to throw in another vote for Madison. I was able to fail with several bootstrapped companies and still grow my savings because of things like cheap rent ($350/mon + utilities) cheap transportation (very bike-able when it's not snowing and good bus system when it is) and cheap food (lots of tasty and inexpensive restaurants).

[kgosser]

Madison is legit. I'm from Milwaukee and love the opportunities here, but Madison is not far behind as a favorite. I might just be a homer though.