There is truth in that second point. Startup financing is a hands on business. So is HFT. There's probably a reason why a lot of firms engaged in HFT are clu

There is truth in that second point. Startup financing is a hands on business. So is HFT. There's probably a reason why a lot of firms engaged in HFT are clustered around lower Manhattan, and it probably has something to do with the necessary capital requirements and the short path to market information. It should be obvious then that markets are not perfect; they require information to operate and some markets are particular sensitive to the distance from the necessary information. Anyone cannot just invest in anything from any city. Just ask PG. It's also not just investors. It's the people on the ground writing your code. Zed did mention that.