[mikeleeorg]

Just to jump on the point of being physically co-located: I've done both. There are pros and cons to each. What I've found is: it all depends on the people in the company. Some work best when they're right next to you, able to share a drink after work to decompress. Others want to run to the beach to go surfing right after a meeting. Both can be equally talented, but vary significantly in their modus operandi.