Whether you consider Kentucky to be a part of the Midwest or not, M25 considers Louisville and Lexington to be among the top Midwestern startup cities.
Each year, the venture capital firm, which recently invested in Southern Indiana startup TitleWise, ranks metros across the Midwest based on three factors:
- Startup environment — Active startups, startup formation growth, number of exits and large outcomes
- Access to resources — How much local startups have raised from venture capital firms, the number of local investors, incubators/accelerators, universities, government support and access to quality talent
- Business climate — Cost of living, labor costs and business-tax friendliness
Overall, there are 25 variables weighed into each city's score.
Louisville came in at No. 12 this year, up one from last year's rankings, with a score of 24.7. Lexington, meanwhile, had an overall rank of No. 17, also up one from last year, with a score of 21.5.
Louisville's rank has been steadily increasing in recent years, whereas Lexington rocketed from No. 26 in 2021 to No. 17 this year.
Bowling Green, Kentucky, also was included in the rankings, but fell eight spots to No. 51. Check out the full rankings here.
Regionally, No. 10 Cincinnati received an overall score of 26.1. That's 23.2 points off from the list's No. 1 city, Chicago, but only 2.9 points off from No. 5 Columbus.
Indianapolis was No. 3 on the list with a score of 33.1, and No. 2 Minneapolis and No. 4 Pittsburgh rounded out the top 5.
