by Arnobio Morelix, Inc. Magazine, 4/2/19.
In December, Startup Genome partnered with Inc.to analyze 50 U.S. metropolitan areas–in everything from job creation to entrepreneurship rates to wage increases–and then to score them by economic growth. That turned into this list of America’s Surge Cities.
Austin is now growing four times faster than most of Silicon Valley–drawing talent and startups from all over the country.
Once known as a magnet for slackers, the so-called “Live Music Capital of the World” and home of the University of Texas-Austin
had a reasonable cost of living, loads of sunshine, well-educated people, and a fun streak. Those are still the reasons people flock to Austin, but slacking off is most certainly not their goal. Today, the metro area, with a population of 2.1 million, is growing four times faster than San Jose and San Francisco (per capita), with entrepreneurs leading the way. Last year, Tyler Haney, founder of New York City-based athletic clothing company Outdoor Voices, relocated her venture-backed company here, as did Peter Thiel’s San Francisco venture capital firm, Mithril Capital. Tech giants including Google, Facebook, Amazon, and Dropbox have all established large presences here. And in December, Apple, which already has its second-largest outpost in Austin, announced it will be investing $1 billion to build a new campus that could eventually hold 15,000 new employees. With all the shiny new high-rises sprouting downtown, it can feel like the city has changed almost overnight, but in fact it’s been decades in the making. Austin-born originals like Dell, Whole Foods, and Trilogy Software have been luring talent to town since the ’80s–and then watching alums go on to become founders themselves. More recent successes, such as Homeaway, Bazaarvoice, and Deep Eddy vodka, have done the same. And South by Southwest allows the city to show itself off to the world’s startup elite every spring. The result: thriving startup scenes in food and drink, computer hardware, enterprise software, and–increasingly–consumer tech. Austin still has lots of live music, but today the city’s creative class is creating business as much as art.
2. SALT LAKE CITY
Mormons, skiing, and a herd of tech unicorns have colonized Silicon Slopes, the region with the greatest volume of high-growth companies.
Known as the Crossroads of the West
–the first transcontinental railroad and the first transcontinental highway both pass through–the mountainside city also has another, slicker nickname: Silicon Slopes. Tech giants such as Adobe, Electronic Arts, and Oracle all have offices here. Meanwhile, homegrown internet businesses like Ancestry.com and Omniture now employ thousands of people and generate billions in revenue. Entrepreneurs here tend to hail from one of two schools, Brigham Young University, owned and operated by the Church of Jesus Christ of Latter-day Saints, or Utah Valley University. People move here not just because of the world-class skiing–or their Mormon roots–but also because it’s still much more affordable than other tech hot spots. In recent years, the region has added five new startups valued at more than $1 billion each, including education platform Pluralsight, smart-home equipment maker Vivint, and data analytics firms InsideSales.com, Domo, and Qualtrics. The founders of the latter two, Josh James and Ryan Smith, respectively, are the big entrepreneurial personalities in town.
The state capital, part of the hyper-educated Research Triangle, is buzzing with software startups.
This former tobacco and textile town has been transformed into a software hub. Raleigh’s
revitalized downtown is home to a number of fast-growth startups, including business software maker Pendo, which closed a $50 million Series D in 2019. Like many startups in the area, Pendo got its start in HQ Raleigh, the city’s dominant co-working space, which offers flexible leases and access to mentors. The Research Triangle–the area encompassing Raleigh, Durham, and Chapel Hill–boasts the fourth-most-educated population in the country, ahead of San Francisco, according to personal finance firm WalletHub. Forty-seven percent of the local talent pool holds a bachelor’s degree or higher, and many are from well-regarded local universities Duke, the University of North Carolina at Chapel Hill, and NC State. These schools all offer strong engineering and computer science programs, so the startup scene is software heavy. But there’s also a thriving food scene that includes Seal the Seasons, which freezes and distributes farmers’ crops. Overall, North Carolina companies raised $1.1 billion in 2017, up 36 percent from the previous year.
Read more at … https://www.inc.com/surge-cities/best-places-start-business.html