5. Los Angeles, California
Average IT salaries in 'Silicon Beach,' as it's been called, grew 3.6 percent in 2013 but equity investments remained flat. That said, there is a thriving digital media and entertainment industry in the LA area. If your startup ties into the entertainment industry then LA or NYC are the obvious choices.
The city is in close proximity to several major universities which are supplying engineering talent, while the city has several accelerator and incubator programs to help companies grow.
Although the average IT salary has been increasing steadily, people considering California as a new home have to consider cost of living as well.