Top 10 cities in the US for tech startups

US Cities for Tech Startups

What is a startup?

A startup is a company that is in its early phases of operation. Startups are created by one or more entrepreneurs who desire to create a product or service that they feel will be in demand. These businesses typically begin with high costs and low revenue, which is why they seek money from a number of sources, including venture capitalists.

Startups are businesses or initiatives that are focused on bringing a single product or service to market. These businesses often lack a completely formed business model and, more importantly, the finance to continue on to the next stage of development. The majority of these businesses are initially supported by their founders.

Many entrepreneurs seek additional money from outsiders, including family, friends, and venture investors. Silicon Valley is well-known for its powerful venture capitalist community and as a popular startup destination, but it is also commonly regarded as the most demanding arena.

Things to consider when your considering to run a startup

Entrepreneurs must consider a variety of issues as they attempt to get their startups off the ground and into operation. Some of the most common are given below.

Location: A company’s location can make or break it. And it’s frequently one of the most crucial concerns for anyone just starting out in business. Startups must select whether to conduct business online, at an office or home office, or in a store. The location is determined by the product or service offered.

Legal structure: Startups must determine which legal form is most suited to their entity. A sole proprietorship is appropriate for a founder who is also the primary employee of a company. Partnerships are a valid legal form for businesses with multiple owners that share ownership, and they are also quite simple to set up. Personal responsibility can be lessened by incorporating a new business as a limited liability company (LLC).

Funding: Startups frequently raise financing from family and friends or from venture capitalists. This is a group of professional investors who specialize in startup finance. Crowdfunding has become a realistic tool for many people to obtain the funds they require to drive their businesses ahead. The entrepreneur creates an internet crowdfunding page where people who believe in the company can donate money.

Pros of startups

• More learning opportunities
• increased accountability
• Flexibility
• Workplace advantages
• Innovators are encouraged.
• Hours are flexible.

Cons

• Failure danger
• Having to raise funds
• High-stress business environment
• Competitive business environment

Now that all basics has been gone through, let’s count down the 10 best locations for tech startup companies.

10. Dallas

Entrepreneurs are drawn to the city because of its low restrictions, zero corporation income taxes, and the Dallas Entrepreneur Center, or DEC, a nonprofit organization that serves as a hub for startup networking, funding, and mentorship. Computer consulting firm Allata (No. 40) and online sporting-goods merchant OrderMyGear are among Dallas’ Inc. 5000 companies (No. 1,443).

The city has had 113% revenue growth in three years and 74 Inc. firms.

9. Houston

After Hurricane Harvey devastated the Houston area in 2017, the construction industry expanded dramatically to help rebuild and repair the storm’s damage. According to the Associated General Contractors of America, the region led the nation in construction job growth last year. Oil pipeline services company JP Services (No. 792) and contractor services firm CC&D are among the Houston-based Inc. 5000 companies (No. 1,973).

The city has had 117% sales growth in three years and 84 Inc. firms.

8. Chicago

More than harsh winters and deep-dish pizza, Chicago boasts a diversified and thriving business culture, driving internet behemoths such as Stripe, Salesforce, Google, and Facebook to establish satellite offices there. Among this year’s fastest-growing Inc. 5000 companies are e-commerce logistics company ShipBob (No. 99) and digital education startup RedShelf (No. 231).

The city has had 141% sales growth in three years and 110 Inc. firms.

7. Los Angeles

Most people identify this West Coast metropolis with Hollywood, but it is also a welcoming climate for businesses. Financial services and advertising and marketing are two prominent businesses. Customer acquisition firm MuteSix (No. 15) and data management provider VideoAmp are among the startups established there (No. 387).

The city has had 160% sales growth in three years and 102 Inc.businesses

6. Denver

Denver has significantly more to offer than high elevations and marijuana stores. Aside from software companies such as Apto (No. 2,019), which specializes in real estate, and OrthoFi (No. 2,091), which provides back-office services such as billing and appointment reminders, the city is becoming a center for food and beverage businesses. This includes FloWater (No. 493), a manufacturer of filtered water dispensers, and Sleeping Giant Brewing Company, a contract brewery (No. 1,439).

The city has had 161% sales growth in three years and 48 Inc. firms.

5. Atlanta

Because of computer science and engineering schools at Georgia IT, Morehouse, Spelman, and Clark Atlanta, the city is brimming with tech talent. That could explain why more than a quarter of Atlanta’s 101 Inc. 5000 companies are in the software and IT services industries. GreenPrint (No. 71), which helps organizations lower their environmental footprint, and coding boot camp DigitalCrafts are among the 2019 winners (No. 117).

The city has had 185% sales growth in three years and 101 Inc. firms.

4. San Diego

The city is a haven for startups, with 24 incubators and accelerator programs, as well as strong talent pipelines from the University of California, San Diego, and adjacent military sites. Non-pharmacological treatment startup Amenity Health (No. 96), plant-based protein drink maker Koia (No. 187), and eco-friendly beach towel company Sand Cloud are among San Diego’s 2019 Inc. 5000 honorees (No. 308).

The city has had 188% sales growth in three years and 71 Inc. firms.

3. New York City

According to a 2018 survey by market research firm Forrester, tech occupations dominate the New York City startup sector; the city has more tech professionals than the Bay Area. This has aided unicorns such as Warby Parker and WeWork, as well as the Inc. 5000 firms situated in New York. Online investing firm YieldStreet (No. 14), personalized engagement ring site With Clarity (No. 18), and direct-to-consumer cookie dough maker Sweet Loren’s are among them (No. 114).

The city has had 197% sales growth in three years and 199 Inc. firms

2. Austin

Because of its high rate of entrepreneurship and job creation, Austin has become a paradise for startups. The city topped Inc.’s 2018 Surge Cities list, which measures the metro regions in the United States with the strongest economic velocity. In addition to internet behemoths such as Facebook, Amazon, and Apple, all of which have outposts in the area, the city is home to innovative culinary enterprises such as No. 3, Cece’s Veggie Co., a veggie noodle producer, and No. 650, Maggie Louise Confections, a handcrafted chocolatier.

The city has had 259% sales growth in three years and 87 Inc. firms

1.  San Francisco

San Francisco has reclaimed first place thanks to its famed startup environment. While the Bay Area has long been recognized for producing unicorns (AirbnB, Stripe, and Uber were all started there), it is also home to fresh, thriving businesses such as print-on-demand platform Printify (No. 24) and eco-friendly home-goods delivery service Grove Collaborative (No. 87). If you can afford the high rent, San Francisco is still one of the best places to start a business.

The city has had a revenue rise of 413% over three years and 52 Inc. firms.

Conclusion

The world of startups is growing fast as more innovative entrepreneurs are raising the problem solving  solutions step by step to solve our basic daily problems or even more advanced ones. All the cities mentioned here are great but  before you venture into aunty of this city to do your startup make sure you look around for what moves the market over there.