Your startup does not have to be in San Francisco
San Francisco is the Vatican of the startup religion. Many entrepreneurs journeys include a Bay Area pilgrimage and go through the Apple, Facebook, or Google campuses.
You do not need to establish your church in the Vatican to attract believers.
And similarly, you don’t need to be in Silicon Valley to build a successful startup.
A location by itself is irrelevant. It may help you for hiring since San Francisco has a concentration of talent. But this competitive “edge” is shrinking as talent is becoming available everywhere.
Being located outside of San Francisco gives you a real competitive edge. The overall cost of living is cheaper, which maximizes your runway. You have fewer distractions so that you can focus on working instead of going to social events which have limited value. And you can be close to something you love and brings you peace of mind.
I built Codiga while being located in Colorado. It brought many advantages. I had a large house with a room dedicated to work. Every day was sunny, with established outdoor trails, which had a positive effect on my daily mood. It was silent, spacious, which brought me inner peace.
A location will not bring you success. Nothing replaces good people with strong work ethics who dedicate their life to a project night and day.