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New startup hubs emerge despite continued concentration of VC

August 09, 2018

After considerable growth in the number of startups raising a first round of venture capital financing between 2009 and 2014, there has been a geographically widespread contraction, according to new research from Ian Hathaway at the Center of American Entrepreneurship, a D.C. based advocacy group. In America’s Rising Startup Communities, Hathaway explores the geography of first venture capital financing across U.S. metropolitan areas over the last eight years, finding that just 10 metro areas account for more than two-thirds of all first financings. From 2009 to 2017, the number of startups receiving a first financing increased by 84 percent, and more than one-third of regions saw an increase in deals.

Although there has been a broad geographic contraction in first financings, some communities have experienced an increase. Mid-sized regions, like Boulder, Columbus and Indianapolis, saw the largest growth in first financings. Meanwhile, first financings are heavily concentrated in major metropolitan areas on the coasts, such as San Francisco and New York, yet many have experienced a decline in first financings. For additional insight, an interactive map of the data is available on the Startup Revolution website.

 

startups, venture capital