Yes, I believe that statement. There are two things that being located in SV gets you: 1. Ability to hire elite programmers that are a few percent better than

Yes, I believe that statement. There are two things that being located in SV gets you: 1. Ability to hire elite programmers that are a few percent better than those in NYC. You'll pay for that quality though. Plus the cannon fodder programmers that you'll hire if you get big cost more in SV for the same quality as NYC. 2. VC money that is a bit easier to get for tech startups compared to NYC. Your business is not robust if it would be successful if you hired a 99th percentile programmer and had $5mm in investment in SV, but it would fail with a 95th percentile programmer and had $3mm in investment in NYC. People that don't think they could make their idea work in NYC aren't confident in their idea and just playing entrepreneur.