When it comes to startup ecosystems in the Midwest, Chicago is king. But the region is establishing a clear second-best city for startups, and many other cities are rising in the ranks as they work to attract and retain top tech talent, according to a new report.
For the third year in a row, Chicago ran away with the No. 1 ranking in a list of best startup cities in the Midwest, according to an analysis from Chicago VC firm M25. However, Minneapolis has firmly established itself as the next-best tech hub, and it would "commandingly take first place" if Chicago wasn't included, the report said.
"[Minneapolis] seems to have it all — loads of startups, significant funding, success stories, a strong university ecosystem with a highly educated population and quality accelerators," the report said.
Following Minneapolis are Pittsburgh, Indianapolis, St. Louis and Ann Arbor. Indy and St. Louis flipped in M25's rankings this year as Indy has seen two new startup accelerators and a $250 million Indiana-focused fund-of-funds.
Rounding out the top 10 are Madison, Cincinnati, Columbus and Cleveland.
Midwest college towns are seeing increased startup activity, according to the report, with places like Ann Arbor and Madison receiving high marks. Ann Arbor outranked fellow Michigan city Detroit, even as Detroit startup StockX recently reached unicorn status for its sneaker marketplace.
In total, M25 ranked 54 startup ecosystems throughout the Midwest. It ranked cities based on startup activity, access to resources and business climate, including factors such as number of startups, number of exits, investor activity, accelerators, government support, and local universities.
Other Illinois cities on M25's list include Champaign (16), Peoria (36), Bloomington (37), Rockford (49) and Springfield (50).
See the full list here.
