The 10 Fastest-Growing States for Startups

May 22, 2015

10:00 am

DC and New York topped Mattermark’s list of the fastest-growing states for startups in 2014, beating out California for the top spots. While New York frequently ranks high on such lists, this is a particularly big validator for the DC area, which has seen more and more activity in the tech scene in the last decade.

“Some companies may be migrating to DC where they can lobby or otherwise affect policy or win government contracts. New York may be attracting companies due to its status as a financial hub and proximity to Europe,” the 2014 Startup Traction Report said.

The South also made a nice showing on the list, with North Carolina, Georgia, and Maryland ranking in the top 10 (I know, I know, Maryland’s contested territory – but it’s definitely not in the Northeast).

The fastest-growing states of 2014 were ranked based on their median Mattermark growth score, which takes into account local startups’ monthly unique website visitors, weekly mobile downloads, social media metrics, number of employees, and equity funding. (If Mattermark had calculated the average startup growth, California would probably have claimed #1 thanks to its crazy outliers.) Here they are:

1. DC

Growth score: 47

2. New York

Growth score: 42

3. California

Growth score: 32

4. Oregon

Growth score: 30

5. North Carolina

Growth score: 29

6. Georgia

Growth score: 28

7. Illinois

Growth score: 28

8. Massachusetts

Growth score: 27

9. Maryland

Growth score: 26.5

10. Utah

Growth score: 25

Released last December, the 2014 Startup Traction Report includes a wealth of data on the fastest-growing startups, regions, and industries (get it for $99). They used data from public sources like Crunchbase, AngelList, NASDAQ, the SEC, and the White House Office of Management & Budget, as well as private relationships they have with investors and entrepreneurs. Everything was measured for the 2014 fiscal year, which covers October 2013-September 2014.

Image credit: Public-Domain-Image.com

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Kira M. Newman is a Tech Cocktail writer interested in the harsh reality of entrepreneurship, work-life balance, and psychology. She is the founder of The Year of Happy and has been traveling around the world interviewing entrepreneurs in Asia, Europe, and North America since 2011. Follow her @kiramnewman or contact kira@tech.co.

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