He just seems kind of ignorant really. My experience is certainly limited to the west coast, but I've been around for a while both as a founder and early stage employee in plenty of startups, and I've yet to see one that didn't eventually take US based investment. Our biggest problems is that there aren't enough local angels and the local VCs aren't all that great - which is why everyone past a certain stage goes south to raise funds.

And this is great news, as it will make pitching those investors easier.