It's only Bay vs NYC? Why not stay in Austin? Every startup here is hiring. Why not Boston, Boulder, Seattle, or Portland? Not mentioning other cities seems shortsighted. Online startups can exist anywhere. If you're not interested in groupthink considering other cities seems very reasonable.
I also don't buy your SF commute argument. There are tons of startups in downtown SF. You don't have to live in the bay area and work in the valley. If I were to move out there I'd live and work in SF, I wouldn't even consider SV.
The reason I narrowed down my selection to Bay Area v. NYC was the following:
1. I'm from the NYC area, and have a lot of friends who will be living there. I also have a lot of friends in Silicon Valley. I don't know too many people who are sticking around in Austin. While it wouldn't be the end of the world to live in a place where I didn't know a ton of people, I'd prefer to live in a place where I have a preexisting friend group. Plus, I went to college for four years here; Austin is great, but after 4 years, I need a change of pace.
2. NYC is arguably the 2nd best city for tech(behind Silicon Valley). With Bloomberg's initiative to start a tech-centric campus on Roosevelt island, and the recent influx of big tech companies (Facebook, Google, Twitter, Palantir, etc.), it's becoming a very hot city for tech in a very short period of time.
As a young person in their early 20s, I think it makes sense for him to try his luck in NYC or SF and live that life for a while when his skills are in demand there. Once he's ready to settle down, move somewhere more friendly to that way of life. Better to do it now than regret not doing it later.
Austin, Boston, Boulder, Seattle, or Portland are all towns where one can settle down and raise a family without having to settle for a corporate 9-5 gig since there's vibrant startup/tech communities in these cities too. The option is always there and is especially attractive once you've got the Bay Area or NYC experience under your belt.
I love Austin, but I think that there's a story to be told about location when it comes to Gowalla vs. Foursquare. Look at FS now- they're partnering with American Express, Bravo, Conde Nast... there is a lot to be said for the connections you can make in a city like New York.
Previously, I thought Gowalla was the only somewhat known startup in Austin, but they sold to Facebook. Are there any other somewhat known startups in Austin?
I work in an office with WP Engine and Other Inbox (recently acquired by Return Path.) There are plenty of startups here; the Capital Factory folks probably know many of them.
I moved here from the Bay Area (with a 2-year stay in San Diego in the middle) and I'm really happy with the quality of life and the tech community here in Austin. I can buy a house and live comfortably here, and the taxes are far cheaper--important when you really start earning money!
I'm going to second the reply to your comment. I thought what you think too, but it turns out the energy of a city matters. I moved from the Bay Area to San Diego. I LOVE San Diego. Still have many friends there. Unfortunately the tech community there is really small. So I moved my entire company to Austin. We are much happier here. Plus, our revenues have doubled in the three months we've been here--just from the connections we've made.
Austin feels like a "mini-Bay Area" to me. I didn't want to start my next company in the bubble, especially since we're working with a lot of "oldschool" businesses. Austin is booming, but things are still relatively inexpensive here, and there are plenty of customers. Plus, we found an amazing Python developer here--I'm not sure that would have been as possible in the Bay Area.
I'm still willing to travel to the Bay Area; I just don't want to live there again.
You're right, in one sense. Part of it is the same effect that results in four gas stations on one intersection, part of it is the presence of resources and connections, and part is that success breeds success.
On the other hand, my attempt at a point was that once you've started your business, you have to focus on it. Suddenly all that other innovation around you stops being opportunities and starts being distractions. If anyone says to you, "What you're doing is stupid, you should be doing what those guys over there are doing," you probably shouldn't listen to them. The last thing you need to be doing is chasing instead of being chased.
I second that the OP should look more into staying in Austin. Austin has plenty of women, and you don't need to have a car here if you don't want too. I have been living here a year without a car and do fine, plus your money goes farther here in Austin. I have lived in the Bay and LA, and while the weather is the best in SoCal (best in the US?) I love everything Austin has to offer and will be here a while.
car2go? I moved down in October and was lucky enough to borrow a friend's car for awhile. It feels generally necessary, but I don't have one yet either. Are you downtown/soco?
I also don't buy your SF commute argument. There are tons of startups in downtown SF. You don't have to live in the bay area and work in the valley. If I were to move out there I'd live and work in SF, I wouldn't even consider SV.