I'm sorry but that can't possibly be the reasoning. They don't offer relocation because there are so many developers in that area anyway and startups are notoriously tight on their budgets (justified or not) so would rather not spend the money. Being fairly new to the US, yet a long time developer, I attempted to get work out west (I'm east coast right now) but no-one in the bay area would pay to relocate it seemed so I guess I'll be staying here for a while!