1. Finance companies get government bailouts and are more likely to succeed.  Tech startups don't get govt bailouts and have a high likelihood of failure.  Therefore, investing in a finance co is a safer bet.  That's the point he makes, and it's logical enough to me.<p>2. Yes, investors from anywhere can invest in companies from anywhere, but it (obviously) doesn't always work out that way.  Finance companies didn't gravitate to NYC by accident.  Why would a finance investor fund a co across the country when he can choose from a dozen in his back yard?  The world is "small" and "flat" but proximity still matters.