I agree. I'm a UTCS grad that was hell-bent on getting involved in startups, but there simply weren't many options at the time ('08). The reasons I witnessed are the following:

* Austin is no longer an entrepreneurial town.

* The 10% rules hurts the entrepreneurial spirit.

* Geographic isolation hurts the entrepreneurial spirit.

* Little emphasis on consumer companies.

* No network effect.

* No virtuous cycle.

More details here: http://www.quora.com/Why-are-there-so-few-startups-founded-b...