Yes, there is a massive bias against tech companies not in the Valley. My company, based in Canada, recently finished a $50M Series C road trip that included the Valley and New York, and the contrast between the two could not be any larger.

The Valley VCs and investors were dismissive and incredulous that a Canadian company could achieve the success we had, and that we could find people "good enough" to make systems able to handle the kind of traffic we were running. They genuinely couldn't believe we'd done it outside of California.

New York, however, was much more interested and receptive, and ended up being the best source for our future funding.

This whole business is less about numbers and reality and more about feelings and who you know than anyone wants to admit.