Ask YC: Ideal location for a non-VC startup?

But, some other factors make the valley great for tech business, and similar elements in other cities would be similarly valuable. Good schools nearby, nice culture and decent weather so smart people like to live there, low friction living so those smart people can focus on their work rather than on getting by (this can mean a lot of things, but I think places where long commutes are the norm is probably a negative), enough of the support infrastructure necessary for running a tech business (tech-knowledgeable legal services, accountants, PR/marketing, etc.).

I'd think this narrows it down to a few areas in the US, roughly in order of goodness: Silicon Valley, Boston, Austin, Research Triangle in NC, Seattle (sucky weather, though), New York, Chicago, Houston (too spread out, so long commutes, and hot muggy weather), Pittsburgh, Dallas/Fort Worth, Portland (too cold!), Boulder, and probably a few others.

But, again, your biggest customers can determine your success or failure more than almost any other element, and being near them makes them more likely to work with you. If you're working for oil and gas companies, you'd want to be in Texas (Austin, probably, but any major city will do). If you're working for the federal government or military, you'd obviously want to be in D.C. or Virginia. If you're working for car manufacturers, Ann Arbor (because Detroit is still too much of a shithole--though you could get some bargains on housing, and it does seem to be having some sort of resurgence). I'm working in the hosting industry, so I need to be in Texas or the bay area (or both--which is probably how it'll shake out by next year).