It does make a difference, people will invest locally fist.
VCs focus on their favourite areas or those they feel most comfortable with.
That said, there are a lot more investors opening up so you can view any area as
"not having enough investment"
"your the first so what ever is there you are in the frnt row due to less competition for the dollar".
The other questions
They both discuss this from different stand points in several shows.
Well location/city does matter for a start-up just because you would want to know which group of people you are catering to. In addition, investors would want to know why you chose that certain location or city.
Every decision should be reasonable, even if the reason is because you live in that area, which would mean you'd be able to spend most of your time there.
As for those two locations, I do not have much knowledge of both. You should most definitely check to see in which of those two areas you are planning to market or start-up whatever venture you are involved in.
Let me know where you choose and if it works out!
I'm from outside the US (Australia) and am currently looking for funding from investors here and overseas. Even though I'm here, we are already a global business with the team in Aus, US and Europe. This is my take on it based on my reading and talking to investors.
Looking at the profiles of investors in AngelList.co is a good way to get a feel of how many and who is investing in your area and sector.
So I would base yourself somewhere that makes sense for your business. Unless you are in a total backwater, you will likely find investors in this market if you have business that solves a real problem and has a defined market.