This is true but I think there's also a question about the difference between VC as in huge amounts of money trying to build the next unicorn versus traditional business startup loan levels. I think a lot of startups would be better getting _some_ investment but with a target valuation in the millions rather than billions range. The founders can still do well in that range but they won't have hundreds of employees and expensive offices in NYC.
Right, you can do this to some extent with midwest angel / VC. If you stay out of coastal VC, you can a bit more modest, but the trend for even midwest VC seems to be pushing for unicorns lately...