Austin bumps Silicon Valley out of top spot in startup city rankings

by Anthony Sodd
June 4, 2015


We’re number 1!  According to this year’s Kauffman Index report, Austin has unseated perennial favorites in the Bay Area to be named the best city in America for startup businesses.

Every year the Ewing Marion Kauffman Foundation measures metrics associated with entrepreneurship in the United States. They look at things like the number of new entrepreneurs, the number of entrepreneurs who founded a company when employed and the number of startups in a region per capita. And, we won!

Austin was ranked number 2 last year, and stole this year’s top prize from San Jose – which dropped two places to the number three spot. California as a whole dropped 9 spots in the rankings.

The study found that Austin had the highest rate of new entrepreneurs in the country. We also received high marks for the density of startups in the city, with only New York City, Orlando and Miami boasting higher densities.

Other Texas cities also performed well in the study. Houston took the number 8 spot, San Antonio the number 10 spot, and Dallas the number 15 spot. Overall, in the study’s state rankings, Texas came in at a disappointing number 17 – slipping 4 spots from last year.

Once again, it’s a good time to be starting up in Austin. 


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