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Have been thinking about this for a while.. The answer that follows is based on insights I got from a panel in SF and from discussions with my co-founder Rob Attwell. So why is Silicon Valley/SF the birthplace of most great tech companies? It's about the unique concentration of 5 Cs:
1. Coders (esp with experience)
2. Concepts (new ways of solving things that end up in SV/SF because everywhere else they are deemed crazy)
3. Customers (willing to try things and with disposable income)
4. Cash (investment)
5. Competition (essential to keep you going faster and higher)
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