A recent Linkedin Premium report highlights how startups outside of Silicon Valley, Bay Area are hiring the most people.
Getting out of Silicon Valley
There’s no question that Silicon Valley startups continue to get the most attention from venture capitalists. California, Massachusetts, and New York attracted 75% of U.S. VC dollars in 2016, with California getting the lion’s share. Nevertheless, LinkedIn’s Top Startups list reveals an encouraging trend for places that aren’t Silicon Valley: Nearly one-third of the companies on the list are based somewhere else.
VCs have been talking for quite some time about the importance of geographic diversity in a healthy portfolio. Our list signals that investors may finally be putting their money where their mouths are. On average, valuations of companies outside of New York, California and Massachusetts are about 35% lower, Revolution CEO and chairman Steve Case told LinkedIn in May. Why? Fewer investors are paying attention to the activity in that area. This is changing, which could mean even more capital going to startup communities outside of Silicon Valley.
Article and image source: Linkedin Research