One of the recent start-up memes has been the Seattle v. Silicon Valley so-called battle. All sorts of reasons have been put forth about why one spot is better than the other. And, to one degree or the other, they are all true. Sort-of depends on one's world-view.
But, if you are really concerned about building a long-term company, as opposed to a startup with a high potential of a 10x return to the investors, maybe any city in California is a bad place to be (and Washington is not so good, either). How about Austin or Salt Lake City?