Startups at this stage can certain move, but it's expensive (in time and money) to do so. Some startups at this stage have spouses and kids, which makes this a bigger decision. If the spouse has a lucrative job, this makes it more expensive (especially in this market, where there aren't big piles of jobs sitting around in the valley).
In our case, YC was worth it. We left working wives behind and they visited us occasionally to remind us that we were married.
But if there was a similar quality program locally, we would've considered it. (For the record, I don't think TechStars is good enough that we would've punted YC for it if it were local, but it seems to be getting better).
Geography is less of a factor for YC applicants, I'd assume, because YC is far enough above the competition that it's worth it to move.
In our case, YC was worth it. We left working wives behind and they visited us occasionally to remind us that we were married.
But if there was a similar quality program locally, we would've considered it. (For the record, I don't think TechStars is good enough that we would've punted YC for it if it were local, but it seems to be getting better).
Geography is less of a factor for YC applicants, I'd assume, because YC is far enough above the competition that it's worth it to move.