If you’re looking for a place to launch a startup, Silicon Valley is still a good choice. It’s just not your best option.
That distinction goes to Massachusetts, which tops Zippia’s list for best states to launch a startup. Using two main data points – the PriceWaterhouseCoopers’ (PwC) MoneyTree Report and the Kaufman Index – Zippia was able to distinguish how many deals were made, and the total amount of funding for those deals. It then returned various other data points, such as how much each deal was worth per capita.
Overall, $23 billion was invested across 1,416 deals in the second quarter of 2018, says PwC. As you see in the chart below, California took the lion’s share of that funding, but it fell short of being the best place to launch a startup. Massachusetts took the top spot because it had a healthier amount of funding and deals per capita (which accounts for population).
With nearly $3 billion funded across 113 deals, the average Massachusetts startup raked in just over $25 million. That exceeds California’s average pull of $20.7 million per deal.
There are a few other surprises, as well. Colorado ranks third; while we know Denver has a thriving tech scene, its venture capital is also healthy. Washington, home to so many big tech firms such as Amazon and Microsoft, checks in at the fourth spot. New York rounds out the top five.
Utah ranks sixth, which joins Virginia (seventh place) as two states we didn’t expect to see ranked so highly. Maryland, Oregon, and Texas round out the top ten.
Zippia tells us only 42 states made the MoneyTree and Kaufman Index, but the bottom of this barrel probably won’t surprise you. Iowa is the absolute worst place for startups, with only $1 million funded across two deals. Arkansas, Idaho, Vermont, and Kansas round out the bottom five. All told, the worst five states averaged just shy of $3.5 million per deal, a number skewed heavily by Kansas’ one deal worth $10.4 million.
Whether you’re launching your own startup or taking a job at one (or several), Zippia’s full list is a great resource. If nothing more, it’s a way to know if startups in your state are averaging a lot of funding, without needing to take their word on it. When it comes to many startups, blustery bragging about money could be masking an impending acquisition.