You've got a good point. We've been profitable from day one and never had investment until very recently, not even a bank loan.

However, we are in Newcastle. Why? Because that's where(ish) we live. As a developer, it's nice to be able to get out a couple times a month and meet like minded folks at things like SuperMondays and talk about specifics at user group meetings.

Personally, I'd rather work down in York but from what mates tell me, the community isn't quite there.