There is truth in that second point.  Startup financing is a hands on business.  So is HFT.  There's probably a reason why a lot of firms engaged in HFT are clustered around lower Manhattan, and it probably has something to do with the necessary capital requirements and the short path to market information.<p>It should be obvious then that markets are not perfect; they require information to operate and some markets are particular sensitive to the distance from the necessary information.  Anyone <i>cannot</i> just invest in anything from any city.  Just ask PG.<p>It's also not just investors.  It's the people on the ground writing your code.  Zed did mention that.