As CEO of a post-seed company, I had to start building relationships with Series-A investors. They are all here, so I could meet them in person without much travel, or they could come visit our office. That matters.
When our investors hold events, they are here. I meet other founders/executives who have started/run large tech companies, in person. I can ask them about what they are thinking about, walk through problems we're going through, and build a human-to-human relationship, off the record. That last part is important when, as a founder, talking candidly about the shit going wrong isn't usually what you get to do. Most won't do it over email, unless they know you well already.
When we recruit people, many of the best are already here, working on similar problems. There is a Catch 22 in building another Silicon Valley: to hire talented people you need successful companies; to build successful companies, you need talented people.
I'm not saying it can't be done, but the hard parts of building a tech company are easier here. They aren't easy, but easier. When you're a small team with 300 things that have to get done, having the most important ones made easier is a nice thing to have. For every minute another startup spends convincing an investor or potential hire that they can be the first massively successful company founded in Richmond, we can think about something else.
Do I wish it were the case? No. But I only have so many battles that I can fight at once, and our number one priority is building software to run cities. If being here helps us do that, we'll adapt.