There is a reason why people set up in San Francisco even though it costs more. We have an office there, and in terms of both recruiting and business contacts, moving it out of San Francisco would be a waste of money.

We also have an office in NYC -- also not cheap, but totally worth it. Between NYC and SF we have no trouble recruiting employees who want to live in a desirable location (and we, the officers, want to live here too!), and nearly all of our partners and business contacts are either in SF or NYC, too.

Price of everything, value of nothing.