The situation you describe will be positive for the Midwest. Many of those engineers at the dev office back home have options and, should the company have a successful exit, are well positioned to start new companies or angel invest, and do it where they are. This isn't going to happen overnight, and more teams and founders will stay put and still be successful over time.
Plus, engineering is core to many tech startups. It's a big change in the industry that they are successful having the dev teams back home and bay area investors are cool with that! (disclaimer: I'm the founder of a midwest-startup with coastal VC)
Plus, engineering is core to many tech startups. It's a big change in the industry that they are successful having the dev teams back home and bay area investors are cool with that! (disclaimer: I'm the founder of a midwest-startup with coastal VC)