DENVER, March 2, 2022 /PRNewswire-PRWeb/ -- A Crowdfund Capital Advisors (CCA) study ranks Austin as the best city in the country for startups.
The study sought to determine where startups have the best chance of success by using data based on over 5,000 companies that have raised money online from investors primarily in their own communities. CCA compared the 100 biggest U.S. cities on data ranging from the amount of money invested into pre-IPO startups; the number of fundraising campaigns, the average valuation for companies, the number of investors into fundraising rounds, the success rate of campaigns, and the number of unique industries represented.
The Investment Crowdfunding advisory firm released the study Monday. "Startups and small businesses have vast local and regional economic impacts," says Sherwood Neiss, Principal at CCA. "Not only do they provide innovative products and services to consumers both locally and nationally, but they also fuel local economies with tax dollars, spur employment, and create community pride and development."
The top fifteen American cities for startups:
1: Austin, TX
2: Houston, TX
3: San Diego, CA
4: Atlanta, GA
5: Chicago, IL
6. Seattle, WA
7. Miami, FL
8. Wilmington, DE
9. Carlsbad, CA
10. Las Vegas, NV
11. Portland, OR
12. Denver, CO
13. Philadelphia, PA
14. Detroit, MI
15. Boulder, CO
A combination of the number of startups (39) raising capital online ($30.6M) from community investors (20,206) in 2021, the success rate (86.7%) of those offerings, their average valuation ($36.9M) and the number of unique industries (24) represented, helped Austin beat off stiff competition from across the country.
"Virtual reality office company Immersed, human drone company Lift Aircraft, and cryptocurrency data, research, and ratings company Token Metrics topped the Austin list and highlight the variety of startups," says Neiss.
The Top 5 states for startups:
1: California
2: Texas
3: New York
4: Florida
5: Massachusetts
According to the CCA Startup Viability Index, California is the best state for startups given its blend of tech-enabled cities, infrastructure, highly educated workforce, entrepreneurial spirit, and investor enthusiasm. The most significant drawbacks to California are its tax structure and cost of living.
Texas, New York, and Florida follow. Texas and Florida benefit from no state tax. "Recently, Florida has been on a drive to promote itself as an innovator pushing digital cities, cryptocurrency headquarters, and more," says Neiss. "And the cost of living in Florida is arguably less than in New York."
"Multinational corporations begin as startups," says Jason Best, Principal at CCA. "They create roots in local communities, create loyal jobs that recycle capital locally, promote gender and race opportunities, and improve the standard of living regionally. Civic leaders that want to create local Silicon Valleys should focus on a checklist of activities to increase their ranking."
For a more detail on the Index and list of top startups in each city email [email protected]
Crowdfund Capital Advisors' principals created the framework for Investment Crowdfunding and were invited to the White House by President Obama. CCA is a consultant to the World Bank, US State Department, as well as governments and NGOs globally. CCA has created and perfected a data acquisition model that allows it to effectively handle large amounts of data from online brokers/dealers as well as online investment platforms. It has proprietary software, built by its own technical team, as well as a data quality team to accomplish this task. This data is transmitted to Bloomberg daily as well as available as a feed for institutions. Thousands of clients have received information from Crowdfund Capital Advisors to improve their businesses.
Crowdfund Capital Advisors and the Startup Viability Index are either registered trademarks or trademarks of Crowdfund Capital Advisors in the United States and/or other countries.
The names of actual companies and products mentioned herein may be the trademarks of their respective owners.
For more information, press only:
Sherwood Neiss
202-247-7182
[email protected]
For more information on the Startup Viability Index:
https://crowdfundcapitaladvisors.com/2022-best-cities-and-states-for-startups/
Media Contact
Sherwood Edward Neiss, Crowdfund Capital Advisors, LLC, 1 2022477182, [email protected]
SOURCE Crowdfund Capital Advisors, LLC
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