1. Finance companies get government bailouts and are more likely to succeed. Tech startups don't get govt bailouts and have a high likelihood of failure. Therefore, investing in a finance co is a safer bet. That's the point he makes, and it's logical enough to me.

2. Yes, investors from anywhere can invest in companies from anywhere, but it (obviously) doesn't always work out that way. Finance companies didn't gravitate to NYC by accident. Why would a finance investor fund a co across the country when he can choose from a dozen in his back yard? The world is "small" and "flat" but proximity still matters.