One of Ben Horowitz's books spends some time arguing that they set up Andreeson Horowitz in San Francisco specifically because they think it's the coolest city

One of Ben Horowitz's books spends some time arguing that they set up Andreeson Horowitz in San Francisco specifically because they think it's the coolest city in the world - and they will naturally get access to the best talent because of it. Regardless of how you feel about SF now or then, it's hard to argue that it's actually "cool" enough today that it's drawing any talent on its own. People moved to SF to pursue the rat race of chasing after good software jobs - not the other way around. So yeah, I definitely believe that there is an elitist bubble where Horowitz and Benioff and other prominent SFians kind of delude themselves to believe that SF is actually a better place to start a software business rather than, say, Omaha or St Louis or even Sacramento.