Especially nowadays, with the direct costs of a web-based software startup approaching zero; there is no reason for fincanciers to be the bottleneck. When three motivated people working out of their homes can build a fully functional site; the direct costs to the founders aren't that different from their living expenses and there is no need for large amounts of capital until after product development is completed.

The main advantage of regional hubs is that of social density; easy access to expertise and enough demand for experts that they can survive and thrive.