Center for American Entrepreneurship Releases Analysis of America’s Startup

Communities

The Center for American Entrepreneurship (CAE), a nonpartisan research, policy, and advocacy
organization, today released a ground-breaking analysis of the geographic distribution of
first-round venture capital financing of early-stage startups.

Washington, DC, July 31, 2018 --(PR.com)-- In recent years, there has been increased interest in and
focus on entrepreneurship clusters in areas outside of the well-known coastal startup hubs such as San
Francisco, Silicon Valley, Boston, and New York. Investors like Steve Case and Brad Feld are betting on
companies outside Silicon Valley, predicting that “the rise of the rest” will level the entrepreneurial
playing field and make startup communities more prevalent throughout the country.

To test this notion, Ian Hathaway, research director at the Center for American Entrepreneurship, has
analyzed eight years of “first financing” venture capital investments in high-growth early-stage startups
across the country.

Are startup hubs spreading across America? The evidence is encouraging, but with layers of nuance and
reason for both optimism or pessimism.

More early-stage startups in more metro areas are getting funded compared to eight years ago. But, there
has also been a contraction in that growth over the last few years. A plurality of metros participated in
that national decline and the leading startup hubs still garner most first financings - even slightly
expanding their share. While a rising tide may be lifting more boats, it appears to be lifting the biggest
boats the most.

“Reasonable people can interpret these data differently, but I still believe the story is a positive one - with
more startups in more cities accessing venture capital compared to a decade ago,” said Hathaway. “A
brief post-financial crisis period of over-exuberance is moderating and the early-stage funding market
seems to be moving toward a more stable yet geographically inclusive path forward.”

“Startup communities take time to develop,” Hathaway continued. “The data suggest that progress will be
non-linear and that the scope could be narrower than many would hope for. History suggests that the
establishment of startup hubs must be thought of in terms of decades, not years, and there are limits to the
number of cities that will ultimately emerge.”

Full Report
The full report can be found at http://www.startupsusa.org/americas-rising-startup-communities/. CAE
welcomes press, bloggers, policymakers, scholars, think tanks, and other interested parties to use and
reference our report with attribution as: “Source: America's Rising Startup Communities, Center for
American Entrepreneurship, July 2018.”

About the Center for American Entrepreneurship (CAE)

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The Center for American Entrepreneurship (CAE) is a nonpartisan, Washington, DC area-based 501(c)(3)
research, policy, and advocacy organization. CAE's mission is to engage policymakers in Washington,
and at state and local levels across the nation, regarding the critical importance of entrepreneurs and
startups to innovation, economic growth, and job creation - and to pursue a comprehensive policy agenda
intended to significantly enhance the circumstances for new business formation, survival, and growth.

For more information, visit StartupsUSA.org

Follow CAE on Twitter: @StartupsUSAorg

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Contact Information:
Center for American Entrepreneurship
John Dearie
(202) 821-9448
Contact via Email
http://www.startupsusa.org/

Online Version of Press Release:

You can read the online version of this press release at: https://www.pr.com/press-release/760868

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