I attended a demo night yesterday in DC and one of the founders had an interesting response to a question. The attendee asked whether the rumors of the company relocating to the west coast were true, and what was the driver(s) behind it. Part of the founder's response was that the valuation of her 9 month old startup was 2-4x that of what was given on the east coast, and that she couldn't leave that kind of money on the table for her company and her investors.
At first it seemed like a pretty reasonable response, but after thinking about it I found it to be kind of curious. Its a consumer messaging app, which she said would be easier and better suited to grow on the west coast (resources, capital, support groups, etc).
Would the valuation be different, because there is a perceived better crop of tech talent in the Valley? Or is the founder just chasing the money and "bright lights" of the Valley?
Other than that I couldn't think of a single reason why a consumer based app wouldn't have an equal chance of being successful in DC or anywhere else on the east coast.