I'd wager it's the pre-existing culture of Silicon Valley that attracts startups. Kind of like a tech Mecca, it's got a magnetic pull based on "if you want to succeed you need to be based here". With VCs etc operating out of there it does actually become a self-fulfilling prophecy.
As to the blockchain and ICO model, the problem is the current lack of regulation, leaving the burden of research to the buyer. I expect this will change relatively soon (places like New York, India and Singapore are already trying to introduce legislation regarding this) and then we might see more of an uptick, but you still need to get people out of the almost 40 year old mindset now that "Silicon Valley is where startups have to be to make it big".
As to the blockchain and ICO model, the problem is the current lack of regulation, leaving the burden of research to the buyer. I expect this will change relatively soon (places like New York, India and Singapore are already trying to introduce legislation regarding this) and then we might see more of an uptick, but you still need to get people out of the almost 40 year old mindset now that "Silicon Valley is where startups have to be to make it big".
Not an easy task I'd say.