For many years, Silicon Valley has been synonymous with the startup scene. The area, which generally includes San Francisco-San Jose-Oakland, California, has served as a launch pad for companies such as Apple Inc., Cisco Systems Inc. and eBay Inc.
Today, Silicon Valley is home to some of the top startups in the country. These include names such as Wing, Nuro Inc. and Parallel Health. While the region will continue to attract startups and early-stage companies, other cities are becoming well-known as emerging tech hubs.
According to the PitchBook 2022 US Venture Capital Outlook report, the Bay Area achieved a 22% share of the total number of venture capital (VC) in the United States in 2022. This was in line with the number of deals in 2021, but a decrease measurable from 26% only 10 years ago.
With more VCs spreading their wings outside of Silicon Valley, here are five cities that are taking full advantage.
To stay up-to-date on the best startup investments, sign up for Benzinga’s startup investment and crowdfunding newsletter
1. Pittsburgh: Go back in time and Pittsburgh was primarily known for its steel and iron production. Despite its blue-collar roots, the Steel City is becoming one of the most popular tech hubs in the United States.
It all started in 2006, when Google opened an office at Carnegie Mellon University. This opened the door for other tech giants such as Apple Inc., Amazon.com Inc. and Facebook, to set up shop in the area.
Today, Pittsburgh is one of the fastest growing cities for startups, with companies like CleanRobotics calling it home.
2. Atlanta: Atlanta is called the Silicon Peach for a reason. It may not have the same volume of startups as Silicon Valley or its longstanding reputation, but there are a few things that make it one of the country’s top picks for startups.
For starters, Atlanta is an affordable city, measured by both cost of living and cost of doing business. This adds to a large pool of tech talent, thanks in part to the location of the Georgia Institute of Technology in the city.
Mailchimp and Calendly are two of the most well-known companies launching in Atlanta.
3. Seattle: Seattle VC activity remained strong in 2022, further solidifying its position as a strong alternative to Silicon Valley. There are many reasons for its popularity:
Seattle is home to several large technology companies, including Amazon, Microsoft Corp. and The Boeing Co.
A strong startup community is supported by organizations like the Seattle Tech Meetup and the Seattle Angel Conference.
State and local governments are serious about supporting and incentivizing startups.
When it comes to innovation and entrepreneurship, Seattle is second to none.
4. Chicago: Chicago is home to approximately 6,000 tech companies, making it one of the largest cities for tech employees in the United States. That number includes companies like Adobe Inc., LinkedIn Corp. and Lyft Inc.
In addition to established companies, Chicago is also doing its part in promoting startups. Some of the things that make it attractive include a flat income tax, a large pool of tech talent and diversity through its support, such as incentives for women- and minority-owned startups.
5. Miami: Overall, Florida has become a hotbed for startups, and Miami is the city making the biggest waves.
Miami continues to attract startups, especially in the tech sector, thanks to its talent pool, local tech hubs and multilingual professionals.
Top Miami startups include MoonPay, Yuga Labs, and Pipe.
Silicon Valley is still king of the startup scene—at least in terms of venture capital investment activity—but other cities are on its way. While it’s a change from the traditional norm, it’s also good news for startups and investors alike.
See Next: Thanks to changes in federal law, everyday investors can now invest in top startups across the country. For example, Miami-based ARKHAUS is a startup that uses a legal loophole to purchase real estate in some of the most sought-after real estate on the market at a fraction of the cost, including some of the cities on this list.
Read more in Startup News and Investment Opportunities:
Don’t miss real-time alerts on your inventory – join Benzinga Pro for free! Try the tool that will help you invest smarter, faster and better.
This article Silicon Valley Loses Edge After Double-Digit Decline in VC Funding Dominance – 5 US Cities Becoming Fastest-Growing Startup and Innovation Hubs originally appeared on Benzinga.com
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.