The Best States for Tech Startups

The Best States for Tech Startups
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The world has got a one-way ticket to a technology-dependent future, and the US has been leading the charge in investing in that journey for the past few years. With US tech companies raising more than $100 billion in tech investments in 2019 alone, many have found the new American dream in the form of starting their own successful tech businesses.

But where exactly should aspiring tech entrepreneurs be starting their venture? Let's take a look at some tech-forward states and the factors that make them the best ones for opening your very own startup.


Texas has long held its position in the top 10 best US states for tech. And while it's still not Silicon Valley, big tech companies, especially those affected by the COVID-19 pandemic, favor moving to the state due to its business-friendly climate, absence of state income tax, and low cost of living. This includes tech giant Oracle Corp, which just recently moved its headquarters from California to Houston, and industry icon Elon Musk, CEO of SpaceX and Tesla, who recently moved to Austin. Texas's newfound stimulus is expected to provide a rush of investment deals to further propel the state's economy. This is extremely beneficial for tech entrepreneurs looking to establish their own startup as well, because it will encourage more talent and support for businesses, all while the state is still relatively inexpensive to operate in.

New York

The Empire State's pool of talented and diverse employees makes it very attractive to many tech entrepreneurs. Big tech companies like Amazon and Facebook have expanded in the state and now provide more employment opportunities. The state government has rolled out several programs to support this growth. Tech entrepreneurs looking to start a New York LLC can look forward to not just the benefits of limited liability companies - such as personal asset protection and avoiding double taxation - but also addition incentives and funding. For example, in response to the pandemic, the New York State Energy Research and Development Authority recently launched the BRIDGES program, aimed at reviving the economy by fueling tech startup growth with $10 million worth of support. With this, many are expecting New York to surpass Silicon Valley as the nation's biggest tech hub for startups.


The Bay State is definitely a strong player in the tech industry. In the 2020 edition of the Milken Institute's State and Technology Index, Massachusetts was ranked the top state for tech in the country. It was recognized for its contributions in the field of research and development, and for investing large amounts in human resource capital. Two top technological universities in the country, Massachusetts-based Harvard and MIT, have churned out a diverse range of enthusiastic and highly employable individuals as well. This means that entrepreneurs won't have a hard time building competent teams, which is a crucial aspect in establishing a successful startup.


It goes without saying that California is where it all began, being home to the highly esteemed tech hub Silicon Valley. While it's relatively expensive in the state, the benefits are tremendous for tech entrepreneurs looking to establish their own startup. You get to be in the proximity of big tech names such as Apple, Google, and Hewlett-Packard. These companies have prompted a rise in tech professionals as well as venture capitalists (VC) who fund promising startups. One example is Freenome, a California-based med-tech startup focusing on the development of artificial intelligence for the early detection of cancer. The startup has raised a total of $71.2 million in VC funding and support from prestigious businesses. Similarly, tech startups who offer potential can benefit from a large pool of talent and much-needed external funding if they choose to open in the Golden State.

Tech businesses are built upon the idea of providing solutions to the world. As people become more accustomed to a convenient and efficient way of living, the demand for innovation has made tech businesses very lucrative. Where you start, however, can be crucial in the success of your venture. Luckily, your prospects are plentiful in the US, and it's only a matter of evaluating the benefits and perks such as talent, funding, and support to choose which state your business will call home. 

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