Sky high valuations and expensive staff are making Silicon Valley's luster less attractive than before. Top VCs are finding better value outside of California with Europe now an increasingly attractive option for tech start ups and investors. Many companies are now setting up secondary offices in cheaper cities outside of San Francisco for non-essential staff as costs sky rocket. Office rents in San Francisco have reached levels not seen since the dot-com boom, and the arms race between the Silicon Valley giants to poach the sharpest minds in tech is getting more cut-throat by the day.