Why other IT people do it? Probably same reason: to launch some cool new project and raise funding for it.

OP asks if he can prove himself as worthy to VCs by bragging about his successes in the porn area.

With 0 first hand experience with Valley VCs, i'd say that i absolutely respect everyone who makes money in the porn business. Because it is damn hard. I tried and failed miserably and i don't consider myself a dumb guy. This is an ultra-competitive field.

Not to mention high state taxes which you have to pay when you sell that business...

Agreed. A lot of the value of Silicon Valley is the networking and easy access to top talent. It works if you want to be the first to do, say, AR blueprints for construction sites. But most competitors in porn just die of starvation.

I would move to LA instead. Slightly lower cost of living and respectable tech presence.

This guy can afford it.

It's the world's best unicorn factory.