If you are smart, you will be able to succeed anyway. Somehow it escapes us that companies can be built without being in SV and knowing everyone there. Sure, it would be a heck of a lot easier if we were there and did make connections.

I'm not sure what exactly lead up to this scenario, how MS was able to talk with IBM execs, but you have to give MS credit for securing this business deal:

http://www.youtube.com/watch?v=DcWjOodAtoE

I hope that some of those who weren't accepted will figure out a way to have a ragingly successful business. It would make for a great story.