Fast Company has a great article on why you should start a company in Los Angeles.
Since 1994, I have spent about half of my time in the Bay Area and the other half in Los Angeles. LA beats the Bay for a lot of reasons, but the biggest reason is that Los Angeles focuses on building viable businesses, whereas the Bay Area largely focuses solely on technology…for the sake of technology. Los Angeles has a lot more opportunities in a number of very large-scale verticals, which means a wider variety of work and types of work for tech workers than the Bay Area. Speaking of industry verticals – Entertainment, Advertising, Automotive, and Lead Generation (to name a mere few) are all based in the Southern California area. And of course, there is the weather!