LA's Startup Scene, Part 17
Why L.A.'s Start-up Scene Beats All Others. The uber-argument in this one is that talent is easier to find, but there's also this bit:
There wasn't initially easy access to venture capital in L.A. and entrepreneurs had no choice but to build profitable business models from the start.
The exactly opposite could also be argued -- that for L.A. to succeed it needs greater access to venture capital. But there's the start to some ideas in there.