If you have a tech startup idea, build a skeleton of it and come to San Francisco. Raise an angel round. Get connected to people who can actually make things happen. Don't take money from people who are undervaluing your company and can't contribute to improving your prospects.
If you can't stand SF, try Boston, Seattle, Atlanta, Austin, etc. Valuations will still be much better and people will be connected to your industry. I don't want to take anything away from Mr. Vernon, who clearly understands the core elements here, but this feels like 1995 era advice and doesn't really reflect what people can and are doing today.
My other advice, if you simply cannot leave: wait. Valley money and valuations will spread, and VCs and other investors will start chasing deals and being willing to pay more instead of the cited "VC takes 66% of your firm for $1M". (Seriously? WTF. Let me know who that VC is so that I can NEVER LET THEM HANDLE MY MONEY. Way to convince the entrepreneur to NOT hang in there.)