The American startup ecosystem has been controlled by Silicon Valley for many years. Despite trying, there’s just a couple of non-Valley cities, such as New York and Boston, that have been able to offer the necessary combination of VC cash, network, and talent to support thriving startup hubs.
But as more and more businesses spread across the United States, this is no longer necessarily the case. Once the pandemic took full shape, most people decided to abandon the big cities to live in other, less demanding cities that offer more space. This is potentially why many of the big tech and startup hubs have receded in the past year.
There are now numerous metro areas that can support tech companies—thanks to expanding infrastructure and a highly qualified labor force. These new metro areas are substantially less expensive than the East Coast or Silicon Valley, making for really promising hot spots for the next U.S. tech startups.
We’re here to introduce you to 3 of the cities that could be startup hotspots for years to come.
Austin, Texas
The capital of Texas, CNBC most recently ranked Austin as the best city in America to launch a new business. Austin’s startup population increased by 81.2% in 2016, outpacing all other cities except Washington, D.C., according to the 2016 Kauffman Growth Entrepreneurship Index.
Other cities will likely struggle to replicate that outstanding startup growth. This is definitely related to the fact that the University of Texas is one of the biggest off-loaders of an educated labor force.

Photo via Austin Black Business Journal
Boulder, Colorado
GDP. Boulder is home to several high-profile companies, such as startup accelerator TechStars and Ball Aerospace. The city also offers unique outdoor experiences and activities for those living there.

Photo via Techstars
Miami, Florida
When we think about Miami, we often only think about sun, beach, and parties. But Miami is a great place to start a new business. According to the Kauffman Index, Miami has been named the most entrepreneurial city in the United States. There are actually nearly 108 startups per 100,000 people.
But it doesn’t stop at new businesses—tech giants such as Twitter, Google, Facebook, and Apple all have offices operating there. This may be due to the fact that Miami has close ties with Latin America, making it appeal to a larger audience.

Photo via Twitter
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