US Startup Cities Entrepreneurs Should Head to This Season!

A good beginning is half the battle won

It’s a very tough and foremost decision for any entrepreneur or to-be-entrepreneur to decide the location for their startup. They have to look after the factors that can affect their launch.

Factors such as the availability of the required workforce (skilled & unskilled), taxation and immigration policies and support from the government.

In the U.S., 99.9% of all firms are categorized as small businesses

Choosing a city with a favourable business environment can help your startup attract better talent, have better access to funding, and pay less in taxes & operations costs.

Also Read | US eCommerce Startups To Vouch For In 2019

What to consider while choosing the city for your startup?

Having a thorough knowledge of the economy is one good start, but you have to look after other factors that majorly affect starting up of your startup.

Strong Ecosystem: Having people, resources and infrastructure in place can work wonders for the startup. A strong ecosystem means buyers and stakeholders are situated nearby, eliminating chances of miscommunication.

Local Policies & Regulations: If local policies are startup-friendly, startups can tap into their highest potential and be successful.

Market Potential: Analysing the market potential of the city you are planning to launch your startup is very crucial. This helps in predicting your growth rate.

Cost Effectivity: Investing in a heavy lease isn’t the brightest option. Different states have different tax laws and you need to research and decide if you are willing to pump in a certain amount of money towards paying taxes or you’d rather streamline that same money to the growth of your business

US Startup cities to vouch for

Silicon Valley serves as a global centre for high technology, innovation, and social media.

Venture capital investment in Silicon Valley started seeing a drop as other cities in the US started to provide a better window of opportunity.

1 Seattle – Tacoma – Bellevue, WA

Seattle startups receive more VC funding than any other metro in the country.

Seattle is the home of major companies like Amazon, Starbucks, and Microsoft, the Seattle metro area is one of the major destinations on the West Coast for startups. In Seattle, 1.9% of firms receive VC investment, the highest percentage among all large cities in the U.S

The local government of Seattle is highly supportive of startup and small business growth, offering special grants through the Only In Seattle Initiative to foster innovation in key districts and sectors. In addition, Washington state does not levy an income tax, which can be helpful for entrepreneurs running a bootstrapped startup.

2 Austin – Round Rock, TX

Austin has the third-highest startup density in the country due to low costs and lots of talent.

Austin is fast gaining attention from startups, especially tech startups. Reason being the low cost of living and operating a business.

Austin has abundant resources and talent that is ready to be tapped upon.  This makes Austin the best alternative to bigger cities like NYC or San Francisco.

The University of Texas helps the startups to hire fresh talent. The university’s Austin Technology Incubator and the Techstars Austin accelerator offer plenty of resources for entrepreneurs ready to embark on new ventures.

3. Nashville – Davidson – Murfreesboro – Franklin, TN

Nashville is not specifically known for its potential to host startups. However, it is rapidly emerging as an economic powerhouse in the city.

Nashville’s biggest employers are in the healthcare sector, and Medtech startups such as Dose Healthcare and Spiras Health are growing in prominence.

Organizations like the Entrepreneur Center, Wond’ry, and Nashville Software School are always at the aid for the startups.

4. Miami – Fort Lauderdale – West Palm Beach, FL

Other than being an amazing tourist destination, Miami is seeing a significant rise in startup investments and growth.

Among the 50 most populous metro areas, Miami-Fort Lauderdale-West Palm Beach has the highest percentage of workers who are self-employed (14.5 %).

Local universities and colleges are contributing to the growth of startups by introducing their own accelerators or entrepreneurship programs to encourage students to take part in the new opportunities offered by startups.


New startup destinations in the US are fast coming into the picture. They offer all the 4 required ‘Ms’ of the business i.e. Men, Machines, Material & Money in abundance.

This is a perfect time for an entrepreneur to launch their business in the US. Get right on it before the resources get exhausted or the local policies are not as favourable as they were before.

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