This article focuses more on potential employees graduating from UW, but Seattle is a great place to found a startup. In the Valley, everything is pretty crowded, and if you can find real estate, it's not going to be cheap.

In Seattle, it's a buyers market and you can grab some office space or a hacker house for a lot less.

There are more startup resources in the Valley (accelerators/angels/VCs), but that doesn't mean there is a good amount in the Emerald City. One of them, Madrona Venture Group (http://www.madrona.com/), just raised $300M to be invested in startups. There are also a few hacker spaces popping up, such as Surf Incubator (http://www.surfincubator.com).

If you want a good place to start your company with less competition and more rain, move to Seattle.