Silicon Valley is No Longer the Hottest Area for Startups

austin

According to the latest annual Kauffman Index report, which measures entrepreneurship across the country, Silicon Valley has been dethroned as the hottest hub for startups.

The index, which is managed by the Ewing Marion Kauffman Foundation, measures national, state and metropolitan levels of entrepreneurship, growth rates of new entrepreneurs and the number of startups per capita.

In 2014, San Jose took the top spot for startups in the country — this year, the city has fallen to third place. The city of San Francisco also fell from fifth place to sixth.

This year’s hottest startup hub is in Austin, Texas, home to the annual SxSW festival that takes place every March. Miami, Florida took second place this year while Los Angeles and Denver took fourth and fifth, respectively.

Startups in the index are defined as businesses less than a year old with at least one other person besides the owner.

Here are the top 25 cities for this year’s metropolitan startup activity in the U.S.:

(click to enlarge)

startup rank

Based on the map, where blue indicates high startup activity, the West Coast is still the best coast for startups.

us map

On the state level, Montana is still the No. 1 state to grow a startup, possibly due to the growing oil industry, low cost of living and the absence of sales tax. California comes in at 14 on that list, falling from fifth place last year.

by state

According to the national index, startup activity in general is on the rise from an all-time low last year.

Source: Silicon Valley Business Journal

Support our Journalism with a Contribution

Many people might not know this, but despite our large and loyal following which we are immensely grateful for, NextShark is still a small bootstrapped startup that runs on no outside funding or loans.

Everything you see today is built on the backs of warriors who have sacrificed opportunities to help give Asians all over the world a bigger voice.

However, we still face many trials and tribulations in our industry, from figuring out the most sustainable business model for independent media companies to facing the current COVID-19 pandemic decimating advertising revenues across the board.

We hope you consider making a contribution so we can continue to provide you with quality content that informs, educates and inspires the Asian community. Even a $1 contribution goes a long way. Thank you for everyone’s support. We love you all and can’t appreciate you guys enough.

NextShark is a leading source covering Asian American News and Asian News including business, culture, entertainment, politics, tech and lifestyle.

For advertising and inquiries: info@nextshark.com