Are tech startups still incorporating in Delaware?

Yes. If they are still setting up a C corp. Many are now opting for LLCs (which would not necessarily be my recommendation—it depends on the type of company and the exit strategy).

Definately and a lot of vc’s prefer Delaware due to it’s corporate laws, etc

It is still the practice, yes.

It depends on what the tradeoffs are. Many states require a foreign corporation registration in order for the corporation to own property in the state, so you have to weigh the savings in taxes versus the hassle of having to maintain two registrations. In the case of Massachusetts, for instance, the foreign corporation registration costs as much as incorporation in Massachusetts in the first place, and you have to retain a Massachusetts lawyer.

And, to be honest, the “venture capitalist gives us all ten kerjillion dollars and buys our company so that we’re all rich” exit strategy is more of a fantasy than anything else. Plan your business to be profitable as early as possible, to grow only as quickly as you can safely sustain, and you’ll be far more likely to succeed in the long run.