Not true. I worked at one! However, it's fair to say there are no VCs in St. Louis that focus on consumer-facing technology companies.

That said, St. Louis isn't impossible. Strangeloop STL is one of the hands-down, bar none, best conferences in the country each year; Slicehost did quite well for themselves from there; Jack Dorsey goes back home all the time (a co-founder of Square is from the Lou, and the swipe-powered dongle technology comes out of Wash U); and it's not like Chicago's all that far away.

Yes, there are VCs in almost every major city, and I was definitely exaggerating, but the number of VCs in cities like St Louis is laughable compared with the valley.

By the time you move a team you may exceed $50,000 in expenses.

Anyone who is really serious will not take $50,000 to move to St. Louis.

And of course there are exceptions, like someone who has family in St. Louis, or someone who does know investors there etc.