Crowdfund Capital Advisors (CCA) has distributed a report highlighting the top cities in the US for “pre-IPO startups.”
CCA states that the annual study utilizes data harvested from its platform that tracks more than 6000 companies that have raised money online. CCA is best known for its Reg CF platform. CCA says it compared the top 1oo cities in the US utilizing data on the amount of funds raised, number of offerings, average valuations, number of investors, success rates, and more.
According to CCA, the top cities are as follows:
- Las Vegas, NV
- Austin, TX
- Wilmington, DE
- Seattle, WA
- Atlanta, GA
- San Diego, CA
- Chicago, IL
- Irvine, CA
- Houston, TX
- Nashville/Franklin, TN
- Boulder, CO
- Washington, DC
- Naples, FL
- Dover, DE
- Albuquerque, NM
CCA noted that Las Vegas, which moved up nine spots, took over the top spot from Austin, Texas a well known startup hub.
Sherwood Neiss, co-founder of CCA, said Las Vegas has all of the key elements to support an entrepreneurial scene.
“Engaged civic leaders open to learning about the startup ecosystem, where they collaborate on the vision and provide government sponsorship of events, gatherings, and tax breaks. The community has training and mentorship programs for local entrepreneurs. It has benefitted from revitalization efforts from large companies and hosts trade shows, funding programs, co-working spaces, and a low living cost. This is why Las Vegas has become one of the fastest growing tech hubs in the country.”
Nevada also benefits by being a low tax jurisdiction with no personal income tax.
Neiss commented on the benefits of having an entrepreneurial-friendly city as they generate “vast local and regional economic impact.”
“Not only do they provide innovative products and services to consumers both locally and nationally, but they also fuel local economies with tax dollars, spur employment, and create community pride and development.”
While California continues to be a top state for early-stage ventures, it is harmed by the high cost of living and exceptionally high taxes. In some communities, like LA and SF, rampant crime and poor governance have become a pressing problem, causing a dramatic drop in population.
