I haven't lost anybody. Early on, an executive recruiter said we'd never find anybody who wanted to move here, but we haven't had that problem. He got fed up with the congestion. Loves the move down here - no gridlock, and he found a great house. Small wonder that some venture capitalists now actively encourage start-ups to set up shop outside the Valley.
Salaries are higher, the cost of doing business is higher.
Associated support and services are more expensive. While some start-ups actively eschew northern California, for the most part, entrepreneurs launch their companies wherever they happen to live. Now if a company is founded in Atlanta, it's going to stay in Atlanta. I've worked with people from all over - Silicon Valley, New York, Boston. I knew we were just as smart down here.