Starting a business can be hard. After coming up with that award-winning idea, you must figure out endless logistics in order to get yourself off the ground. Who will you ask to join your innovative team? How will you come up with the money to fund your endeavors? Where will your business thrive and eventually call home?
With a new study investigating the success of startups broken down by US cities, answering that last question may have just gotten a little easier. The location you decide on can ultimately make or break your startup. It can affect not only the demographics of potential clients, but it can also influence the availability of investors, the strength of a community, and overall company value.
If you’re feeling entrepreneurial, or just interested in how your city stacks up to the rest of the nation, here are some fast facts about American startups.
San Francisco is Where to Go to Rake in the Big Bucks
Based on an average valuation of startups within each city, San Francisco has the most successful startups, coming in at a worth of over $5 million. Honorable mentions belong to San Diego and Raleigh each at $4.8 million.
Startups are not necessarily always successful. The Mideast region of the US performs much lower than it’s east and west coast counterparts with Louisville, Memphis, and Cleveland all failing to break the $3 million mark.
But Look Elsewhere for a Financial Boost
Despite the impressive value of San Francisco’s startups, it performs the worst in comparison to the country in terms of investor availability. The ratio of investors to startups is 0.2 in the California golden city. Likely, this is due to the high saturation of startups in the city (approx. 815 per 100k people, also the highest in the country); though that does mean you will have some stiff competition if you’re looking for a little extra cash to get up-and-running.
The good news is, you don’t have to leave the state to increase your investor odds. The highest ratio is found about seven driving hours south in Riverside, California. The ratio improves by over 300 times to 68.7, which may be worth settling for a slightly lower average value.
While starting a business with no money or following can seem daunting, it could result in a powerful corporation leading modern innovation as we know it. Companies that once started with nothing such as Snapchat and Uber have quickly become so deeply ingrained in our society that many people couldn’t even imagine our world without them. Not to mention their 10 and 40 billion dollar respective valuation they possess.
Wherever you decide to plant your business, put your whole heart into it, stop at nothing to achieve success, and you could change the world.