Thinking of creating a startup in the United States? You’ll want to make sure you’re forming the business in the right city. The best startup cities in the US are the cities with the right kind of culture and environment for creating growth.
These are the cities that offer it all to entrepreneurs. Factors range from the ability to access early-stage funding deals and population growth to the rate of growth as a highly desirable city for the country’s top talent.
While Silicon Valley has previously dominated the world of startups, you’ll see that that’s quickly changing. Top talent is heading elsewhere and so are the entrepreneurs that are after them. They’re all heading to the best startup cities in the US.
Best Startup Cities In The US
1. Austin, Texas
Interestingly enough, Austin also scored No. 1 on our list of the Best Cities For Millennials in 2020. It’s a melting pot of sorts that offers a lot of great things to younger professionals interested in working with startups. From trendy cafes and bars to great job opportunities, awesome people, and a high interest in entrepreneurship, Austin’s got it all. Inc. also noted that the city’s growing four times faster than Silicon Valley, noting that it ranked No. 4 in the country for access to early-stage funding.
2. Salt Lake City, Utah
When you think of Salt Lake City you might automatically think of great skiing and Mormons. But this Utah city is nicknamed the Silicon Slopes for a reason. Adobe, Electronic Arts, and Oracle all have offices in Salt Lake City. And, in just the past few years, the city has added five new startups valued at more than $1 billion each. So, it’s clear that there’s something special going on here. Because of this, Inc. noted that it’s “the region with the greatest volume of high-growth companies.”
3. Raleigh, North Carolina
The Research Triangle has long been a hot destination for eager professionals looking to further their career. So, it comes as no surprise that Raleigh ranked No. 3 on the list of the best startup cities in the US. While it used to be a tobacco and textile town, it’s now a hub for tech giants and startups alike looking to take their companies to the next level. You’ll find that Raleigh residents are incredibly educated as well. Overall, North Carolina is a pretty hot place for startups, having raised $1.1 billion in 2017.
4. Nashville, Tennessee
Nashville ranked 18th on our list of the best cities for millennials this year. The reason? The economy here is booming, with a 30% increase in median wages in recent years and a 48% decrease in the unemployment rate. However, there’s more to than just great wages that’s made it one of the best startup cities in the US. As home to some of the country’s biggest hospital chains, it’s become a mecca of sorts for health startups.
5. San Francisco, California
While close to Silicon Valley, San Francisco actually isn’t part of what’s traditionally considered to be part of the region. Neighbouring cities of Palo Alto, San Jose and Santa Clara might be, but San Francisco has always been left out. Until now. Recently, some of the world’s biggest-name startups have moved here, Uber, Airbnb, and Slack being amongst the biggest. Experts note, however, that high rental costs are detracting some top talent from moving along with the startups. San Francisco is expensive.
6. San Jose, California
There’s no denying that Silicon Valley is still a major hub for startups and their talent in the United States. Apple, Google and Facebook have all changed the landscape of the once-coveted Silicon Valley as San Jose now has the highest home prices in the entire country. Yet, still, it’s hot for entrepreneurs and young talent from the nearby Stanford University looking to enter the rough and tumble world of startups. It’s so popular, in fact, that Facebook is reportedly building apartments near its campus to house talent.
7. San Diego, California
Not into tech? Head further down south all the way to San Diego where you’ll find lots of startups in the life sciences and aerospace industries. Experts note that the city’s reputation as a craft beer mecca of sorts, along with the laidback vibes and coastal views, has made San Diego popular amongst younger talent. And, the city hosts 24 incubator and accelerator programs.