From what I can tell, VCs don't care much for SF as a place to live. They do like the Valley, though. They live in places like Atherton and Palo Alto. It's the young employees who live in the Mission. It's true that the extended area has significant appeal, but I'm not sure it's due to its niceness as a place to live, so much as just that it's where the action is, for historical reasons dating back to the '50s.