Companies with more money than sense might survive for a time, but only those with a good business model and good business-building habits will succeed.
Greater San Francisco isn't overrated, just overpriced. It pays to consider starting up where necessities, from housing to talent, haven't already been bid up to the stratosphere.
If an investor offering to seed your company isn't in line with the way you want to grow, saying "yes" could be one of the biggest regrets you'll ever have.