There's nothing quite like sitting next to someone to facilitate the rapid course-corrections that maximize the chances for early-stage startups to thrive. That said, places like New York are growing as hubs of talent where it's possible to assemble talented in-person teams. And niche investors who understand i.e. the advertising/media/fintech spaces can mitigate the lack of Silicon Valley VCs for companies focused there. Silicon Alley is very much a thing on 23rd Street!