I think its not really about the law - most startups don't even realize it exists. Its much more about the culture. Investors in the Valley have had phenomenal success for some time directly investing in start-ups and firms are willing to take a bet that they will invest in the next big thing. NYC firms aren't as accessible, and even the big events (Disrupt) tend to be Valley based. Also NYC has a talent issue (although I think this is changing), for a very long-time NYC start-ups had to compete with banks to get tech talent and there isn't a huge pool of schools feeding into the city. Finally NYC is expensive, so its harder to get a "garage" to work from and 2K a month is tough to live on.
That said a lot of these issues are being resolved, and I see both founders and investors making a very big dent this time around particularly with mobile start-ups.
The problem with the article is that it believes that sites like OLX are the disruptors. The real disruptors are the care.com's, the airbnb's, and others who are bringing a great UI and social experience to a category and owning it.
That said a lot of these issues are being resolved, and I see both founders and investors making a very big dent this time around particularly with mobile start-ups.