You can absolutely return to the job market and get a good job again after failing at a startup. This happens all the time. You are still just as qualified after failing as before – probably more so – and employers know this. I say this both as someone who has done this myself (and seen friends/colleagues do it), and as a hiring manager who is more than happy to talk to candidates like this.

Relocating outside the Bay Area will make it harder to find that job. But there are lots of remote opportunities today, and in the worst case you might be able to relo back here.

Life is short. If you are excited about this prospect, and you can afford to spend the money if it doesn't work out, then go for it.