Startups that demand relocation to NYC or SF are a total show stopper here. Many of us are held hostage by geography-- maybe you own a home, maybe you have kids in a school they're flourishing in, maybe your parents need help. If you're a family man you won't like spending your wife and children's time in Bay Area or Metro NYC traffic. But here's the thing: the technology most startups use means they can transcend geography to an extent.
I do not underestimate the value of having a team in the same location. It does affect morale and company culture. But with the right people and the right technology those issues are quickly going to wind up in the rearview mirror. When I look at a company, I want to see if they are set up to do remote work, or are they landlocked?