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> SF is where the money is.

Agreed, but once you have the money, execute in a place I describe above.

Most tech startups don't make it so why not use the extra capital (because rent is much lower) as insurance to succeed.

I have worked in numerous places throughout the US. My most successful venture has been to licence my tech to a commercial company. I live in a small town and travel around the world each year for fun. Its a nice pace of life. I visit some friends in San Fran and find the talent there honestly not that great. Sure, there are lots of good programmers but you need a lot more than good programmers to succeed.

Most VCs wouldn't let you do that. They want you nearby.

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