Several business hubs in the U.S. are among the best places in the world to launch a business.
A Startup Genome, a research organization that supports small businesses, ranks three American strategic areas among the top five in its latest global start-up ecosystem ranking: Silicon Valley (located in Santa Clara Valley, California), New York, and Boston.
The company’s report, released in 2022 and covering the period from mid-2020 to 2021, shows Boston and Beijing swapping places from the previous year, with Boston rising from fifth to fourth place and Beijing dropping one position.
The start-up climate in China has declined due to a drop in early-stage funding compared to other places, the report states.
Silicon Valley, a long-time magnet for tech companies, has topped the Startup Genome ranking since 2017. The region attracts the highest amount of venture capital investment anywhere in the world, with $105 billion invested in its start-ups in 2021, according to the report. This represents double the total from 2020, the report states.
The data from the recent report is influenced by policies in place during the Covid-19 pandemic – in Beijing, strict policies hindered business activity, while people in many cities in the U.S. and Europe used technology to continue working.
Stanford University and other top schools nearby provide talent for Silicon Valley. Networking opportunities, including the Women of Silicon Valley conference and the Global Venture Capital Summit, attract millions to start-up-focused events.
The city of New York – which maintains its ranking tied with London in second place – attracts large amounts of venture capital. Start-ups backed by city ventures raised $55 billion in 2021, more than double the amount from the previous year. In 2021, two start-ups backed by New York ventures completed initial public offerings, listing shares on the New York Stock Exchange.
Startup Genome hails Boston as a “start-up powerhouse” due to its leading universities and an “incredible force” in Life Sciences and Robotics. In 2021, just ten funding events in Boston generated $7 billion, more than double the total from the previous year.
Women are making progress in Boston, the report states, having founded about 10% of its start-ups and leading several of its venture capital firms.
The report calculates its rankings using a complex formula with dozens of metrics. J.F. Gauthier, founder and CEO of Startup Genome, said that, overall, the United States is a great place to start businesses because it has a long history of supporting entrepreneurship. “Our policies are very favorable to start-ups, business creation, and their growth,” he said.
Source: share.america.gov