7 Affordable And Awesome American Cities For Tech Entrepreneurs
- Nov 23, 2022
- 5 min read
Written by: Aleksandr Iurev, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
You have an idea for a startup. You want to move to the United States, but you’ve only heard of Silicon Valley, New York and Boston. Yes, those cities are the top three hottest spots for startups in North America. But they’re also the most expensive and are highly competitive in every way. It’s easy to get lost in the crowd in those cities.
So, if your budget can’t support plans to set up shop in one of those major high-priced cities, What to do and Where to go? Here’s the answer— a list of 7 affordable and awesome cities that many tech entrepreneurs now call home because of their pleasant standard of living and the local opportunities for launching a business.
Austin
Austin consistently ranks as one of the best places to live in the U.S. based on affordability, job prospects and quality of life. The Texan city is a magnet for the North American counter-culture and all those who think outside the box. This is why it’s home to many artists, as well as tech entrepreneurs. According to TechCrunch, Austin closes the second-highest number of funding rounds in VC deals in the southern United States. In general, Texas ranks as the top state for business development. It has lots of cheap energy, as well as a very mobile, educated and flexible workforce. Ryan Wuerch, founder and CEO of the advertising platform and cash-back app Dosh, told CNBC: "We've been able to attract [to Austin] some of the smartest people from cities like San Francisco and Seattle because they want to live in a family-friendly, affordable and active city, with a diverse culture. Austin is the epitome of that.”
Atlanta
There’s another major competitor for the title of 'the Silicon Valley of the South’. Atlanta is home to world-class universities such as Georgia Tech, as well as tech startups such as MailChimp, and Ionic Security, which is a leading data security platform that helps businesses enforce access and privacy requirements. Also, the city has more than 70 video game developer companies. There’s a tremendous energy and buzz in Atlanta that has spurred the population (in the metropolitan area) to double in size since 1990, reaching almost 6 million today. “Atlanta attracts a super-young workforce that’s diverse and creative," says Rob Frohwein, CEO of the fintech company, Kabbage, which was founded in the city in 2011 and counts Reverence CapitalPartners and SoftBank Capital as investors.
Chattanooga
Chattanooga in the state of Tennessee has one of the fastest-growing tech sectors thanks to a robust start-up ecosystem. It was the first U.S. city to roll out a citywide gigabit network in 2010, and it also created an Innovation District, a 140-acre section in the downtown that has become a cluster for startups, nonprofits, and government entities. "The affordability for starting a business here is great, and the cost of living is better," said LukeMarklin, CEO of Bellhops, the moving company that was founded in the city in 2011, and which operates in more than 50 cities nationwide. "This helps Bellhops attract the right people and retain talent in a competitive industry.”
Cincinnati
Many young entrepreneurs are launching startups in this city in the state of Ohio. Among them is Lisnr, which provides device connectivity using sound waves. Founded in 2012, Lisnr’s major investors include Visa, Intel, and Mercury Fund, raising $35 million over the past 7 years. As is well known, a big part of successful funding is having access to potential investors. You often need to be in the right circles to get that access. If you're an outsider, do you think that you can simply fly to Silicon Valley or New York City to meet investors? Of course not. You have to know the right people. Well, if you live in Cincinnati, then it can be surprisingly easy to meet serious investors. Since it's a smaller city, but still a major hub, there are local wealthy investors who are looking for deals in new technology. Here, you can get access to the 15 right people and have a better chance to get funding.
Detroit
This city in Michigan, on the Canadian border, has long had a spirit of invention and ingenuity. Unfortunately, today we often hear about Detroit’s decay ever since the auto industry collapsed in the 1980s. Despite the urban blight, Detroit’s small business scene is coming back, and there are hundreds of tech startups in the city. In fact, Detroit has the nickname, “Start-up City, USA.” Why are startups flocking to Detroit? There’s lots of empty space. Vacant lots, and even skyscrapers, are available to purchase or rent for a small fraction of the cost in major cities. Also, the low cost of living and a large pool of educated talent make Detroit fruitful soil for startups. For example, PetramData connects businesses of all sizes with data and AI-driven insights, offering a view into how homeowners are spending their money. Navv Systems works with hospitals and warehouses to implement indoor navigation and positioning technology to streamline operations and guide traffic through spaces.
Seattle
With plenty of green space and magnificent vistas, Seattle is a nature lover’s dream. A few decades ago, some of the biggest startups in the world found fertile soil in Seattle, such as Amazon and Starbucks.
Known as the ‘Emerald City’ in reference to “The Wizard of Oz”, Seattle is the perfect place to start a business. The area received$3.8 billion in funding between 2019 and 2021. This includeMotherDuck, a serverless analytics service built for “lightweight” use cases. To date, MotherDuck has total funding of $47.5 million, including a $35 million Series A round led by Andreessen Horowitz.
Also, the University of Washington is located in Seattle, and that has helped to generate a deep talent pool. The cost of living is higher than in places such as Detroit and Chattanooga but still lower than in New York and San Francisco.
Raleigh, Durham, and ChapelHill
These three cities in the state of North Carolina form the so-called Research Triangle. In close proximity to each other, these cities have much to offer startups in terms of new talent and highly-educated specialists.
There are many top-ranked universities nearby, including Duke University and UNC-Chapel Hill. Also, the area has an excellent quality of life that is affordable. The Research Triangle also has a particular strong focus on sustainable energy, and has attracted many startups in the cleantech industry.
For example, 8 Rivers has pioneered clean hydrogen and ammonia technology. It’s also the inventor of a zero-carbon power generation system commercialized by NET Power, in which 8 Rivers is a co-owner.
Aleksandr Iurev, Executive Contributor Brainz Magazine
Aleksandr Iurev is a serial entrepreneur, with many years of experience in launching startups. His most recent is Pocketfied, which will radically disrupt the mobile app development industry with its highly innovative technology and service. Overall, Mr. Iurev has 20 years of experience in the IT sector, as well as in DevOps, and Information Security. He cut his teeth in Tech working in IT security for the largest banks in Russia, as well as for top IT companies. That experience protecting clients from hacker attacks is one reason why he attaches top priority to building secure systems so that users can be certain they're protected.
