In the medium and long term, employee cost is less important than missing out on the absolutely best employees and mentors. The work of great employees scale,

In the medium and long term, employee cost is less important than missing out on the absolutely best employees and mentors. The work of great employees scale, and the great employees willing to join startups tend to flock towards cities like San Francisco. Yes you can pull it off in Boise, but it's harder. And when you factor in loss of access to mentors, VCs, and suppliers and leading edge customers, you wind up being penny-wise and pound-foolish.