Top US Startup Cities Across 10 Major Verticals in 2023

New top 10 leaderboard - US startup cities across 10 major verticals in 2023

Ground rules for these rankings: they are based on the total amount of priced funding raised by startups using Carta last year. Data relates to where the startup HQ is located.

They also happen to be objectively correct in every way 😁.

Of course we could build a leaderboard by total rounds (NYC fares better in that view), or by total exits, or by total acquisitions, or any number of things. But capital invested is a great way to start! Who doesn't love a list?

Note - good to keep in mind overall fundraising was down about 50% from 2022.

Note 2 - if AI was an industry, the Bay Area would take the crown in a landslide.

Top 5 breakdown:

𝟭 - 𝗕𝗮𝘆 𝗔𝗿𝗲𝗮

• $16.2 billion invested, about 31% of all capital on Carta

• Funding shrunk by about half for SF and San Jose from 2022

• First in 2023 in 6 sectors, 2nd in the other 4

• Largest lead in general SaaS (which contains a lot of AI)

𝟮 - 𝗕𝗼𝘀𝘁𝗼𝗻

• Surprise number 2! Boston saw $7.1 billion invested, about 14% of all capital

• Stayed strong in the traditional anchor industry of Biotech, but also good showings in SaaS, Healthtech, Hardware, and even a 4th place in Fintech

• 3rd overall if this list had been down by total venture rounds completed

𝟯 - 𝗡𝗲𝘄 𝗬𝗼𝗿𝗸

• Probably slightly annoyed to finish third, but would have been second if this was for early rounds only. $6.4 billion invested (12.5% of all)

• Strong year (relatively speaking) in SaaS, Healthtech, Hardware, and maintained the traditional advantage in Fintech

• Weaker in Biotech and Medica Devices

𝟰 - 𝗟𝗼𝘀 𝗔𝗻𝗴𝗲𝗹𝗲𝘀

• $3.2 billion invested (6.2% of all capital)

• Strong in Consumer, per usual, but also SaaS and Gaming.

• Weaker for Healthtech, Biotech, and Energy startups

𝟱 - 𝗔𝘂𝘀𝘁𝗶𝗻

• Welcome to the top 5, Austin! Solid jump from 7 only a year or two earlier

• $2 billion flat invested, about 4% of all capital

• Pretty balanced ecosystem, decent in SaaS, Hardware, Fintech, and Edtech

• Missing Healthtech and Gaming capital

Full Q4 and FY 2023 State of Private Markets report out soon - sign up to our newsletter for hand delivery (to your inbox): https://lnkd.in/gNa_Dk-F

And if you happen to not like the animation on the leaderboard, give me a shout in the comments and I'll drop you a high-res version of the full grid!

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