Frankly, it's almost impossible to find good engineers in NYC. The banks do take them all, that doesn't mean that it's impossible to start up in the city, it is just harder. On the west coasts, startups compete with other startups and employees bounce around making similar amounts of money. In New York, startups compete with financial institutions which can and do throw enormous amounts of cash at employees without a…
NYC has an agency mindset which doesn't work in a startup environment. So you hire people from razorfish, digitas, r/ga, etc. but they're expecting the same 9-5 lifestyle and have a hard time adjusting.