Here’s good news for all startups this 2018! Venture capital investment in startups has reached its highest level ever — $148 billion in the last 12 months. Combined with an expansion of the economy, job growth, and a booming stock market, it’s the time for entrepreneurs to rise and shine with their brilliant ideas. Startups across America are influencing people’s lives like never before!
From fitness tracking to AI to driverless cars – the transformation towards technology is rapidly on the stride. For those looking to launch their own start-ups – you are no longer limited to Silicon Valley! Previous hotspots have become passé. Here’s the latest list of the top 5 Hottest Startup Cities in the US which offers ample growth for your startup!
What were the Factors Considered?
Some of the factors considered to select the top 5 from over 200 American cities were:
- Local Employment – High % of employment (90%)
- The surge of startups – high % of Startup growth (75%)
- Young Adult Residents – Age group of (25-34)
- Favorable Local Laws – Quick response and uncomplicated laws
- Education Levels – (Holding graduate or professional degrees)
The 5 Hottest Startup cities in the US
This Texas hub of technology is home to over 5,500 budding startups and also has offices of tech giants like Apple, Facebook, and Google. Similar to the bay area, you can find plenty of educated millennials here with the city’s vibrant culture and dining scene. The lower cost-of-living compared to the bay area contributes to immense employment opportunities.
|Why is Austin Preferred?|
|No. of startups||5,500+|
|State Income Tax||Texas has 0% in state income tax versus up to ~10% in California and ~6.5% in New York|
|Rent and Employee Salaries||You spend 40–50% less renting a home/office and 20–30% less on employee salaries|
|Quality of Life||Techies prefers Austin for the quality of life that compares to California, but at half the cost of living.|
|Camaraderie||Austin folks truly celebrate each other’s win and also possess a greater sense of wanting to give back|
Similar to Austin, Minneapolis is an upcoming city which boasts of high education, a young population and an affordable lifestyle. Why Minneapolis completely aced to the top 5 is the start-up growth rate – 121.3% which is one of the highest in the US. The pay is decent and the cost of living is inexpensive.
Simply put, salaries in Minnesota though slightly lower than the Silicon Valley and New York areas, enable employees to enjoy a high quality of life.
|Why is Minneapolis Preferred?|
|No. of startups||500+|
|The employable Talent||Large local population of professionals with domain expertise in healthcare, technology and so on.|
|Rentals||Affordability and quality of life are high. Cost of homes and rentals is a fraction of cities like San Francisco.|
|Salaries||Minnesota’s tech pay is almost twice as high as the average state wage.|
When giants like Microsoft, Amazon, and Starbucks embrace Seattle, can startups be far behind? This Emerald city is youthful, vibrant, highly educated and culturally rich. It’s as expensive as San Francisco with respect to the housing and is rated the second best for tech market after San Francisco. For aspiring entrepreneurs, Seattle boasts all the elements necessary to boost startups: talent, large research universities, and good work-life balance and so on.
|Why is Seattle Preferred?|
|Big Firms Employees||Many Microsoft/Amazon employees save up to launch their own startups in Seattle.|
|Employable Talent||You can access the fruits of the labor of larger, well-established companies like Amazon and Microsoft.|
|Affordability||A lot more affordable than New York or San Francisco—with a better metro and transportation facilities.|
|Camaraderie||The business community here is very open and lets you in with plenty of support|
This college town has many degree holders and professionals – but a high cost of living! However, the start-up growth observed here is robust – with talented employees to match! A lot of investor money is flowing into Boston too – Boston start-ups raised $367 million in February 2018 alone. The innovation ecosystem that exists in Massachusetts, brings together and builds on the unique partnership between universities like MIT and startups and tech firms.
|Why is Boston Preferred?|
|Top Universities||Boston has excellent pillar companies and universities like MIT for sourcing talent.|
|Transportation||Boston has excellent public transportation – while Silicon Valley is spread out.|
|Improved Value||The share of next-wave startups——grew 29 percent from 2016-2017.|
This is the capital city of Ohio and has a large, educated and young population with smart numbers for a startup’s growth – a recent $277 million Smart City grant to boost the city’s infrastructure. Since 2013, venture capitalists who are Ohio-based have raised nearly $1 billion and 70% of this was Columbus based investors, a sharp reason for the boost in startups. Columbus is also highly affordable, but not as culturally rich as others on the list.
|Why is Columbus Preferred?|
|Best Universities||The Columbus Region is home to powerful research organizations including The Ohio State University|
|Centrally Located||Nearly 50 percent of the U.S. population is within a day’s drive of Columbus|
|Grants||Received a $277 million Smart City grant from the federal government to develop the city’s infrastructure|
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