Introduction
In the past few years, we’ve seen a number of tech startups emerge from almost every state in the U.S., with many attracting millions in funding. The most funded startup in each state has been able to grow exponentially, creating jobs and giving back to local communities. It’s no surprise that Silicon Valley is still the top spot for funding, but other regions like New York City have started to catch up as venture capital grows more diversified across the country. So whether you’re looking to start your own business or just want to learn more about where some of America’s biggest tech companies got their start, this guide will give you all the information you need!
California
California is known for hosting some of the most well-funded tech startups globally. Some of these startups include Uber, Airbnb, Pinterest, and Snapchat. These companies have collectively raised over $16 billion in venture capital funding.
As I wrote earlier, California is home to numerous successful tech startups, which are prime examples of critical thinking in action. For instance, students Logan Green and John Zimmer utilized their business degrees from UCLA to launch ride-sharing company Lyft, which has raised $4 billion in funding from investors such as General Motors (GM), Fidelity Investments, and Alphabet’s CapitalG fund. Those interested in learning more about critical thinking in the tech industry could explore this topic further through on example of critical thinking essay, that examines the success of these startups and the strategies they used to achieve it.
While WeWork is headquartered in New York City, it operates out of Los Angeles, where it offers discounted office spaces to other companies and coworking spaces for individuals who can rent desks either hourly or through monthly subscriptions instead of purchasing their own office furniture outright, which is the traditional practice for most businesses today.
Massachusetts
Massachusetts is home to a number of successful tech startups, including Boston-based data analytics firm, DataRobot, which has raised over $500 million in funding to date. Another notable example is Cambridge-based biotech company, Moderna, which has made headlines for its groundbreaking work on mRNA-based vaccines and has raised more than $5 billion in funding since its founding in 2010.
Massachusetts is also home to a vibrant startup ecosystem that includes prominent accelerators and venture capital firms. For instance, MassChallenge, a Boston-based accelerator, has helped more than 2,000 startups raise over $4 billion in funding since its inception in 2010. And venture capital firms like Accomplice and General Catalyst, both based in Cambridge, have made significant investments in the state’s startup scene, backing companies such as DraftKings and Kayak.
Overall, Massachusetts’ thriving tech scene and ecosystem continue to attract entrepreneurs and investors from around the world, fueling the growth of new and innovative startups.
Silicon States
Tech.co’s Silicon States project is an invaluable resource for entrepreneurs and investors alike who are interested in the world of tech startups. The project analyzes data from Crunchbase and Mattermark to identify the top-funded tech startups in each state, which it refers to as “funded startups” or “fubs.” By ranking these companies according to their total funding amount, Silicon States provides insight into the latest developments in local startup scenes across the United States. Venture capital firm Silicon Valley Bank is known to use the Silicon States project as a resource for identifying promising investment opportunities. For those looking to keep up with the latest news and trends in the world of tech startups, Silicon States is a must-read resource.
New York
New York, being a hub for both technology and finance, has produced some of the most well-funded tech startups that cater to these industries. Hudl, one of the state’s top-funded startups, is an online video platform utilized by coaches and athletes to analyze game footage. Another leading startup, GitHub, was founded in 2008 by Chris Wanstrath, with the goal of making it easier for developers to share code with one another. Lastly, we have ZocDoc, a platform that helps patients find doctors nearby via its website or mobile app. Interestingly, ZocDoc even offers house calls for those who are unable to visit a doctor’s office due to illness or other reasons.
New York City is one of the largest tech hubs in the world, attracting both startups and established tech companies like Google and Facebook, who have significant operations in the city. Overall, New York’s combination of financial prowess and technological innovation has produced a dynamic and rapidly growing tech scene.
Texas
Texas has seen its fair share of tech success stories, with some of the most notable being Uber and Dropbox. However, there are also many smaller companies that have achieved significant success in Lone Star State.
Uber, which was founded in 2009 by Garrett Camp and Travis Kalanick, has become a global leader in the ride-hailing industry. With operations in over 400 cities around the world, the company has raised over $10 billion from investors including SoftBank Group Corp., GV (formerly Google Ventures), Benchmark Capital Partners, and TPG Growth. As of 2021, Uber’s market capitalization was around $75 billion.
Airbnb is another tech giant that got its start in Texas. Founded in 2008 by Brian Chesky and Joe Gebbia, the online marketplace for renting out spare rooms or entire homes for short periods of time raised about $1 billion from private investors before going public on Nasdaq last year. Despite not yet having turned a profit, Airbnb’s IPO valuation was over $30 billion, making it one of the largest internet startup IPOs in history.
Illinois
Illinois is a thriving hub for the tech industry, boasting a large concentration of tech workers, STEM graduates, and venture capital. In fact, according to Startup Genome’s Global Startup Ecosystem Report, Illinois ranked 7th in the U.S. for startup activity in 2017, with over 1,000 active startups, more than half of which were founded within the last five years. Additionally, Chicago was named as one of three global hubs for technology innovation alongside Silicon Valley and Tel Aviv in the same report.
This makes Illinois a fertile ground for entrepreneurs looking to start their own companies or join an established network like TechNexus, which hosts events throughout the city. Furthermore, Forbes magazine has recognized Illinois as “the best state” when it comes to comparing tax rates against median income levels, which tend to be higher than average across the country. With its thriving startup scene, favorable tax policies, and talented workforce, Illinois is a promising location for tech startups and aspiring entrepreneurs alike.
Washington
Seattle, a leading tech hub, boasts several Fortune 500 companies including Microsoft, Amazon, and Boeing, and has earned the distinction of having the highest number of well-funded startups in the United States. Since 2010, over $6.7 billion has been invested in Seattle-based businesses, attracting entrepreneurs and investors from across the globe.
The thriving startup ecosystem in Seattle can be attributed to the efforts of organizations such as Techstars Seattle, which supports early-stage companies by providing them with funding and mentorship. Other programs like Founder Institute, Startup Weekend, Dreamit Ventures, Launch League, Women 2.0, Founders Co-op, and AngelList Syndicates offer resources and networking opportunities to Seattle’s entrepreneurs and investors alike. These initiatives help to foster innovation and create a supportive community for startups to flourish.
North Carolina
In North Carolina, the tech community is thriving. The state has a strong economy and is home to many Fortune 500 companies, including Bank of America, Lowe’s, and Duke Energy. As such, it comes as no surprise that there are also plenty of startups in North Carolina that have received funding from investors.
North Carolina’s most funded startup is Charlotte-based AvidXchange (formerly Ariba), which raised $1 billion in funding in 2018 alone–the largest round ever raised by an enterprise software company at that time. The company provides cloud-based procurement solutions for more than 2 million businesses worldwide.
Conclusion
The tech industry is booming in the US, and it seems like every state has its own startup scene. Silicon States is a great way to learn about the most funded tech companies in each state and what makes them unique. If you’re looking for inspiration or new ideas, check out these companies!
