I think pinning this on a "Midwest mentality" is really missing what is probably the biggest reason. _There is no tech industry in the Midwest_ If your starup fails there isn't another cool startup down the street you can work at instead (a la SF, NY, Boston, etc...) Startups here (I'm in Kansas) are real small businesses that either make money and allow you stay or fail and force to you move. You simply can't wait two years to figure out your business model or hope for a buy-out. It's just that simple.