Startups Blog

US Startups: What Regions Are There?

Measuring startups and their success in the US often comes down to state by state analysis. However, did you know that many investors and founders measure matters by city? City regions are essential due to infrastructure support, educational resources and more. Let’s dive a little deeper.

US startups

City Startups are Growing

While it’s interesting to look at states such as New York and CA, breaking it down into cities is fascinating. It goes without saying that San Francisco, home to Silicon Valley, is a tech hub tour de force. In fact, it still leads the way for young entrepreneurs and tech innovation country-wide.

However, there is significant growth elsewhere in the states. The south, in particular, is starting to witness revenue peaks that are relatively unheard of. That’s largely thanks to the booming construction industry in cities like Houston, TX. Atlanta, GA, too, is building an impressive name for itself in tech innovation.

In recent years, Atlanta broke’s top 5000 companies with more than 100 different cohorts.

However, exciting shifts are emerging that suggest regions outside of the big cities are catching up.

Small and Large State Variations 

Research suggests that we need to start looking at the growth variations between larger and smaller states. The most significant leaps appear to be arising in states such as Massachusetts and Tennessee. While not as well-known for innovations as CA, urbanized states are starting to use their surroundings.

However, states such as Connecticut and Kansas, while not particularly large, see gradual upticks in entrepreneurs starting firms. Statistics from The Kauffman Index show that startup density in smaller areas such as Rhode Island and Delaware are relatively low. That said, regions such as Nevada and Oklahoma continue to court big projects from entrepreneurship.

 Bigger states with solid education systems - CA and TX, for example - will likely always lead the way. However, these lists are fascinating to watch for home-grown talent. It is also worth noting that some suggest a more ‘global’ approach to investing is emerging.


Is Investing By Region Still Alive and Well?

There is always a thirst for local innovation, with many investors choosing their ‘home’ bases. However, global barriers are slowly coming down as a result of the world shrinking. Cryptocurrency trading and the growth of the internet are leading investors beyond their locales.

This change also means that smaller regions and cities have greater access to resources online than ever before. Therefore, it stands to reason that we may see smaller cities growing entrepreneurial bases in years to come. Does that mean that investors should look beyond the old stereotypes of Silicon Valley being the heart of US tech?

It’s maybe not wise to act so hastily. However, as things continue, investors may wish to broaden their scope to regions rather than states.

Could you find your next investment conquest online - via resources such as Fundz? It may be time to go beyond the usual borders to find the latest innovations.




Topic: USA Startups

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