Many entrepreneurs have big dreams of launching a startup in Silicon Valley, but a new report from Zippia found that it might not be the best place to go.
The report gathered information from PricewaterhouseCoopers' Q2 2018 MoneyTree report and The Kauffman Index. The states were ranked based on the state's Kauffman Index, available deals for startups, deals for startups per-capita, and the amount of startups funded per capita, according to the report.
SEE: Quick glossary: Startups (Tech Pro Research)
Here are the 10 best states to open your startup.
- New York
Massachusetts, the report noted, held the leading position because each company received an average of $2.5 million to begin their operations. California fell slightly behind but still had the most deals for startups at 586, according to the report.
While these may be the best states to launch a company, the best cities for startup success may differ. According to a recent Business.org report, the best cities for startup success were San Francisco, Austin, Minneapolis, and San Jose, in that order.
It's important to remember that geography isn't the sole determining factor in whether or not your startup will be successful. Certain firms are thriving in less populated areas like the Midwest as well.
Funding is also a major factor when launching a company. Company founders can pursue a spot in an accelerator or incubator program, or pursue other traditional funding methods. Here are some more articles to help you navigate the funding process:
According to the PwC report, $23 billion was invested across 1,416 deals nationwide in Q2.
The big takeaways for tech leaders:
- Despite popular belief, California falls behind Massachusetts as the best place launch a tech startup in the United States.
- Overall, the report found that now is the time to launch, with $23 billion invested across 1,416 deals nationwide.
- Launching and building a startup: A founder's guide (free PDF) (TechRepublic)
- London's startups aim to avoid the mistakes of Silicon Valley (ZDNet)
- The 25 biggest tech companies in the world, by market cap (TechRepublic)
- Startups could be key to fixing tech's diversity problem (CNET)
- Accelerators vs. incubators: What startups need to know (TechRepublic)
Laurel Deppen is the 2018 summer Editorial Intern for TechRepublic. She is a student at Western Kentucky University.