A List Highlighting the Developing Cities with Booming Startup Scenes Beyond the Coasts
BOSTON (October 1, 2018) – Forbes, in partnership with Revolution’s Rise of the Rest, today released a list of the Top 10 Rising Cities for Startups. Three-quarters of venture capital dollars are invested in California, New York and Massachusetts, with the Bay Area, New York City and Boston the main beneficiaries. But there is a developing class of cities with booming startup scenes beyond the coasts. Revolution’s Rise of the Rest is the official knowledge partner of Forbes’ Top Rising Cities for Startups list.
Some investors are already looking beyond the coasts for their next investment. One of those investors is Steve Case. The billionaire co-founder of AOL, co-founded the DC-based venture capital firm, Revolution in 2005. In 2014, Steve and Revolution launched the Rise of the Rest platform to shine a spotlight on startups in underserved cities. Case and team have since taken bus tours to 38 cities across the country to bring attention to startup communities between the coasts. Last year, Revolution launched the $150 million Rise of the Rest Seed Fund, an early stage fund to invest in companies outside of Silicon Valley, New York and Boston. The fund’s investment roster features some of the richest, most successful Americans in business including Jeff Bezos, Sara Blakely, Dan Gilbert, Meg Whitman, Henry Kravis, Eric Schmidt, Howard Schultz and more. “The goal is to level the playing field so everybody, everywhere who has an idea has a shot at building a company and the American Dream,” says Steve Case. “We believe that supporting the growth of startup communities can help close the innovation gap between the coasts and the middle of the country.”
With that in mind, Forbes went looking for those emerging cities for startups that are poised to thrive in the decades ahead. Columbus finished first, as the Ohio capital scored highly for its college presence, low costs (business and living), increase in VC deals, and the high number of funds launched since 2013. VC deal values topped $250 million in Columbus for the first nine months of the year, which is already more than triple the total value for the 12 months in 2016, per PitchBook.
The 2018 Top 10 Rising Cities For Startups
| Rank | Metro Area | State | 3-yr VC investment |
| 1 | Columbus | OH | $371 mil |
| 2 | St. Louis | MO | $671 mil |
| 3 | Atlanta | GA | $2.9 bil |
| 4 | Denver | CO | $2.3 bil |
| 5 | Baltimore | MD | $1 bil |
| 6 | Cincinnati | OH | $358 mil |
| 7 | Portland | OR | $951 mil |
| 8 | Philadelphia | PA | $2.6 bil |
| 9 | Minneapolis-St. Paul | MN | $1.7 bil |
| 10 | Charlotte | NC | $881 mil |
For the complete list and more, visit: rvltn.vc/Top10
Methodology
To compile the list of emerging startup cities, Forbes eliminated the 10 metro areas that garnered the most VC funding over the past three years, namely San Francisco, New York, Boston, San Jose, Los Angeles, San Diego, Seattle, Chicago, Washington, D.C. and Austin. The drop-off from Austin to No. 11 Atlanta is more than $500 million, according to PitchBook data. Forbes compared the 30 largest metro areas, outside of the 10 above, on 13 factors related to costs (business and living), education levels, college presence, entrepreneurship rates, working age population growth and venture capital investments (density, total number, value and percent changes). Data was provided by PitchBook, Moody’s Analytics and the Kauffman Foundation.
Randall Lane, Forbes’ Chief Content Officer and Steve Case, Co-founder of Revolution, revealed the first-ever Top Rising Cities for Startups list onstage today at Forbes’ 5th annual Under 30 Summit in Boston. The Forbes Under 30 Summit, brought together more than 7,000 of the world’s top young entrepreneurs, game changers, and visionaries from around the world, as well as more than 200 world-class speakers, all of whom represent the entrepreneurial spirit of the Forbes Under 30 franchise.
About Revolution and Rise of the Rest
A Washington, D.C.-based investment firm founded in 2005, Revolution’s mission is to help build disruptive, innovative companies that offer consumers more choice, convenience, and control in their lives. Revolution launched its Rise of the Rest program in 2014, and its iconic bus tour has now visited nearly 40 cities nationwide. In 2017, Steve Case and JD Vance announced a $150 million Rise of the Rest Seed Fund, backed by a group of iconic entrepreneurs, executives and investors that believe the next great startup investments are located outside of coastal cities. Revolution’s Rise of the Rest Seed Fund invests catalytic capital, often alongside regional investors, to the most promising early stage investments in Rise of the Rest cities. For more information, please visit: www.revolution.com or follow us on Twitter @Revolution and @RiseOfRest.
About Forbes Media
Forbes, the defining voice of entrepreneurial capitalism, is a global media leader that champions success by celebrating those who have made it, and those who aspire to make it. Forbes convenes and curates the most-influential leaders and entrepreneurs who are driving change, transforming business and making a significant impact on the world. The Forbes brand today reaches nearly 120 million people worldwide every month through the Forbes and Forbes Asia magazines, 40 licensed local editions covering more than 70 countries, Forbes.com, signature LIVE events, a custom research arm, and social and mobile platforms. Forbes Media’s brand extensions include real estate, education and financial services license agreements. For more information, visit: www.forbes.com/forbes-media/.
Media Contacts
Forbes: Christina Vega at cvega@forbes.com
Revolution: Tracy VanGrack at tracy.vangrack@revolution.com
