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My reasoning for London:

Lots of Big Co's have offices here such as Google, Yahoo, BBC, Skype, etc

Lots of great startups: Last.fm, Moo, Crowdstorm, Mind Candy, Gottabet, etc

Some great universities: Imperial, RCA, near to Oxford & Cambridge

Good VCs: Index Ventures, Accel, Atlas plus Seedcamp

Plenty of events: Ranging from weekly openCoffee's to big barcamps and Hackday and conferences like Future of Web Apps. Last nights Facebook Developer Garage pulled in 200 or so.



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