> What I am suggesting is that entrepreneurs should start businesses where they want to work and then organize the company according to what works best for them. The whole company, particularly development, does not need to be in one location anymore.

I agree with this. Mark Zuckerberg, in a hard-to-find interview with Jessica Livingston [0], once said that if he could do it all over again he wouldn't have moved to SV and would've stayed in Boston.

So, why do so many investors want you near them? The answer is pretty simple, that's where their networks are and therefore that's where they can help you best (finding you investors, customers, employees, or finding you employment if things didn't work).

That being said, you still have to pick smartly based on what you need, people shouldn't really "start businesses where they want to work" unless it happens to be somewhere reasonably favorable.

[0] - https://www.twitch.tv/videos/43861279 (341 views)