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Venture Capital Remains Highly Concentrated in Just a Few Cities

For all the talk of the “rise of the rest,” investment in high-tech startups is clustered in the Bay Area, and the New York- Boston-Washington Corridor.

When it comes to high-tech startups, we hear a lot about the so-called “rise of the rest.” As the nation’s leading centers of high-tech industry—places like the San Francisco Bay Area, New York City, Boston, and Seattle—have become increasingly expensive to live in, the argument goes, talented techies, entrepreneurs, and startups are moving to less expensive places like Portland, Pittsburgh, Detroit, Nashville, Las Vegas, and others.

But to what extent is this actually the case? Are these new startup hubs attracting significant levels of venture capital investment or is the geography of high-tech startups just as concentrated as ever?


To get at this, with the help of my Martin Prosperity Institute (MPI) colleagues, I decided to take a look at the most recent data on where high-tech startups actually are. We used data from Pitchbook...

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