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I think BootstrapHero hit the nail on the head. There are a world of entrepreneurs outside of SF and NY and outside the boarders of the USA. I've started a number of multi million dollar tech companies over the last 10 years and none of them have been in the valley or the city. nReduce has been awesome for my latest company Engine ( http://www.LDEngine.com ) because our programming team is spread out across the country and we have been able to build an "alliance" of 20 great new start ups from all over the world. I see nReduce catching on in a big way and serving to bridge new start ups from idea to seed funding, then if it makes sense they can move to Austin, The Valley or The City, but I think nReduce is unleashing a huge amount of untapped Entrepreneurial energy.
2 years, 6 months ago on Virtual Incubator to All, nReduce Adds Mentors and Demo Days — Is It the Pre-AngelList?