The San Francisco Bay Area still holds the undisputed crown for startup activity and venture capital. But if you’re just looking to get your company started, there are some cheaper places to do so which still offer great amenities for entrepreneurs.
According to a report from GoodApril, a San Francisco-based tax-planning service, the best places to start a company are Austin, Seattle and Boulder. GoodApril based its findings on median tech-employee earnings, personal income tax, property tax, the cost of housing and the cost of office space.
Interestingly, the Bay Area ranked dead last among the seven startup hubs.
“Living and working in the Bay Area is expensive! Really expensive! At the same time, you can’t beat the vibrant startup and technology ecosystem,” according to a blog post announcing the report. “Several tech scenes across the country are in various stages of development, and giving the Bay Area increased competition for standing as the hub for entrepreneurship.”
Just the other day, I was talking with an entrepreneur about the power of starting a company in Seattle, but raising money from Valley VCs, a path that a number of entrepreneurs have chosen to take. There are certainly a lot of advantages to doing that, as the graphic above shows. That said, having a stronger home-grown venture capital infrastructure would also serve Seattle well, something I’ve talked about in the past.
For example, Seattle, which boasts no income tax, has housing prices that are more than half that of the Bay Area. Meanwhile, office space is far cheaper too — but don’t tell anyone that looking for digs in South Lake Union or Pioneer Square.
