I agree with your assessment completely. I actually want to start a startup in Harrisonburg VA, but there are problems with starting one in the area.

It's much harder to raise money. There are very few investors there who can help you. There's less of a support system to help you. Fewer potential customers in the area. It's tough out there.

Very nice city, great beer for sure, low cost of living, very little opportunity if things go south for you.