From The New York Times:

Boulder, Colo., a Magnet for High-Tech Start-Ups

Jason Mendelson, Ryan McIntyre and Brad Feld, from left, are three of the founders of the Foundry Group.

By CLAIRE CAIN MILLER
Published: May 13, 2010

BOULDER, Colo. — Sixty engineers, entrepreneurs and financiers were sipping yerba mate tea at a coffee shop down the street from a bong-and-lingerie store on a recent sunny Tuesday in Boulder, and discussing how Boulder — usually seen as an enclave of hippies, marijuana dispensaries and rock climbers — has become a hotbed of capitalism.

Experienced tech entrepreneurs and investors sat alongside people who had just moved to Boulder hoping to start a company in this small city, which is breeding tech start-ups at an attention-grabbing rate. In the first three months of the year, 11 Colorado tech start-ups raised $57 million in venture capital, solidifying Boulder’s place among the country’s up-and-coming tech centers.

“In Silicon Valley, you’re a small fish in a huge pond, and it didn’t seem as collaborative and a lot more corporate,” said Chad McGimpsey, who moved to Boulder a month ago and is now a regular at the twice-a-month coffee club. “Here, you’re a big fish in a small pond. Plus, there are the mountains.”

A long list of communities around the country have tried to become “the next Silicon Valley.” But very few have the mix of money, universities, a high-tech talent pool and appealing lifestyle needed to hatch tech start-ups. Boulder, however, has been luring tech industry veterans and young entrepreneurs from Silicon Valley and Manhattan with promises of a tech community that allows for lunch-break hikes in the foothills of the Rocky Mountains.

Read the rest at The New York Times