I think southern WA (Vancouver WA, etc.) is the best place to do a startup right now. There's a large population of highly qualified tech people in Portland, OR, but nowhere near enough local employment. Commuting from Portland to Vancouver is feasible, or people could live in WA and also get the income tax benefits, while having Portland's cultural advantages. Southern WA is also very inexpensive relative to the Seattle area, and the local counties are pro business.