NY Times article "It's Not the People You Know. It's Where You are." says lot of VC's still obey the 20-minute rule. If you want VC funds then you have got to be within 20-minute distance from their offices. Which means you have got to find a office in Silicon Valley. Not just that. It is better if it is in Mountain View. Understandable to some extent. The VC's are investing so much money they may expect it. People who want the money can either move there or find an alternative.

Then the article has this

"Silicon Valley is not “bigger” in a literal sense. In fact, it remains geographically contained by the Santa Cruz Mountains on one side and San Francisco Bay on the other. The physical features of the place help explain the Valley’s vitality.

MR. JOHNSON, the venture capitalist in Palo Alto, noted that the greater Los Angeles area also has a pool of talented engineers (working at aerospace companies like Lockheed, Northrop and Hughes) and great universities (notably Caltech and U.C.L.A.) and plenty of money to invest. “But in Los Angeles,” he said, “people are scattered across a wide area; everything is more spread out.”

It’s harder for entrepreneurs to meet with one another and with investors, he added. And that means connections take longer, deals move slowly, fewer companies are formed. “Like a gas, entrepreneurship is hotter when compressed.” he said."

Pearl of Wisdom.