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Top 10 Ranking Of Best U.S Cities For Tech Start-Ups

If the moniker ‘Silicon’ rings a bell, it’s no longer in the ‘Valley’, it’s all about the ‘Hills’

As we are all aware that location plays a major role to the success of tech start-ups, a performance analysis of the leading US cities was conducted in order to determine where 10 of the most conducive cities for digital business lie. Metrics including graduate talent, entrepreneur density and those in technical occupations, start-up survival rates, as well as day-to-day costs such as office space and commuting were carried out in the analysis by Managed IT Services provider, Sungard Availability Services®.

The evidence, demonstrated in an interactive map with adjustable filters, can be drilled down into individual metrics as well as overall ranking. Contrary to popular belief that Silicon Valley is the ‘hub of everything tech’, this study suggests that digital entrepreneurs should be more open to broadening their spectrum a little further South.

 Silicon Hills Triumphs Over Notorious Silicon Valley

Back in 1990, Austin, Texas, wasn’t given the nickname ‘Silicon Hills’ for nothing.  Almost 9% of its workforce are directly employed in a technology job and a metro GDP of $68 Billion – representing the largest proportion of new entrepreneurs at 55.5%. It’s not hard to understand why major market watchers like The Wall St Journal and Forbes have defined the city as ‘a major tech, pharma and defense industry hub.

 Last but Not Least

With a high-rate of 52% of new entrepreneurs – Miami has one of the most thriving local business start-up cultures amongst the 10 cities, regrettably though, only 2.6% work in tech occupations. You might have guessed that San Francisco, being the most expensive city in which to fork out a penny, with office space averaging an eye-watering $809 per square foot – compared to Houston’s more reasonable $131, San Francisco scored poorly for start-up density. Meanwhile, thanks in part to its business-friendly administration, New York is very much ‘open for business’ when it comes to internet-based start-ups spinning out of its Wall Street and Madison Avenue ecosystems.

With almost 11% of the population working in a technical occupation and the highest average educational attainment level in the data, Seattle, is a hot-spot for employers seeking the best academic and specific skills employees. Even after competing with over half of Washington’s population holding a bachelor’s degree and over 30% with multiple qualifications to their name.

Although being the 4th most populated US city out of the 10 covered and offering a diverse skill base and demographic to recruit, Houston ranked at the bottom of the table, with only 30% of ‘Houstonites’ holding a Bachelor’s degree, leaving companies seeking qualified graduates elsewhere. Nevertheless, the city does offer the best value office space, allowing new digital businesses to economize on overheads and invest capital into new product development. The current low density of start-ups could also translate into less competition for ambitious entrepreneurs.

 Swings and Roundabouts

Ultimately, the study affirms that there is no such thing as ‘The Perfect Location’ when it comes to founding the next big name in tech because in turn, each city that came out on top for one benchmark was ranked low for another.


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Startup-Buzz Team

Startup-Buzz Team

Startup-buzz Team is a collaborative group of entrepreneurs, researchers, writers and experienced professionals. Tied up together to bring the latest Startup Buzz going around the globe.

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