Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Business News

Austin knocks San Fran out of the top spot for best startup hub

(AUSTIN BUSINESS NEWS) We’re number one! We’re number one! But can Austin sustain being the best startup hub around?

downtown austin startup hub

Second time champs, baby

We’re number one! We’re number one! For the second year in a row, Austin has been named the #1 city for start-ups in the US. As the city continues to grow, at times to the dismay of native Austinites, the tech culture has become stronger than ever.


How it’s decided

Each year, the Kaufmann Foundation releases their index of start-up rankings based on various factors, including the percentage of adults who become entrepreneurs within a given month. Though San Francisco and San Jose, aka Silicon Valley, are the home of huge technological hubs like Apple and Google, they have dropped down to a humble #8.

This downward plunge is due to the rise in cost of living, steep taxes, and strict regulations for businesses in California. As real estate prices soar, business newcomers flock to less expensive cities like Austin and Denver to pursue their passions.

Texas is crushing it

Every major city in Texas – Austin, Houston, San Antonio, and Dallas – is on the list as top 15 startup cities. As a state, Texas is considered friendly towards business. In addition, the cost of living is reasonable when compared to California and New York.

In Austin, I have heard starting your own business referred to as “drinking the Austin Kool-aid.” The enthusiasm for new projects is addicting, with events like SXSW and Austin Startup Week bringing the newest and most innovative technology.

Advertisement. Scroll to continue reading.

It seems like everyone you meet has another project, business, or idea in addition to their full-time job. This is accepted, and to me almost seems expected. Kaufmann links the rise in entrepreneurship to having more opportunities to start something new, especially in cities like Austin.

As more people turn to starting their own businesses, having money is essential.

Though Silicon Valley offers big time connections, affordability remains a painful challenge.

However, the influx of entrepreneurs to that area is a factor in skyrocketing real estate prices. Could the same happen as Austin continues to top the charts?


Written By

Natalie is a Staff Writer at The American Genius and co-founded an Austin creative magazine called Almost Real Things. When she is not writing, she spends her time making art, teaching painting classes and confusing people. In addition to pursuing a writing career, Natalie plans on getting her MFA to become a Professor of Fine Art.

1 Comment

1 Comment

  1. Pingback: Delicious stats about the current state of startups - The American Genius

Leave a Reply

Your email address will not be published. Required fields are marked *


American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.



Business Entrepreneur

If you own a startup, it may be time to move cautiously financially as experts predict another major slump coming to the startup space.

Business News

Apple is adding nearly a million square feet to their already giant Austin campus, to potentially seat another 15K employees.

Business Marketing

Steve Wozniak is involved at a newer marketing startup called Air, and it looks pretty cool to us! Check out the details.

Social Media

Social media censorship has been a hot topic across the board, but now the federal court upholds free speech rights in TX by law.


The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.