Madison and Milwaukee remain in the top 20 best Midwest cities for startups in 2022, according to Chicago venture firm M25’s annual ranking report.
The report ranks 59 Midwest cities for performance in their startup ecosystems by comparing data focused around startup activity, access to resources and business climate. Madison stayed at No. 9 from the 2021 ranking, while Milwaukee dropped one spot to No. 14.
The rankings were calculated using a weighted scale of 27 variables, which fall under startup activity; talent, sales and innovation; investor presence; accelerators/incubators; government; cost; demographics and connectivity.
The Milwaukee area – which includes Racine, Waukesha, Menomonee Falls and Oak Creek in the rankings – scored well for its population reach, while also having a high score in the number and quality of accelerators and incubators in the region, according to the ranking data. Madison performed strongly in the educated workforce and GDP categories.
Wisconsin-based, nationally ranked startup accelerator gener8tor has an office in Milwaukee and runs a cohort in the city. gener8tor has served more than 800 startups across all of its programs since it was founded in 2012, including Milwaukee-based Fiveable, Bright Cellars and Investii Inc.
Other Wisconsin cities on the list include Green Bay (tied for No. 29), Eau Claire (No. 49), Beloit (No. 50) and La Crosse (tied for No. 53).
Chicago topped the list for the fifth year in a row, followed by Minneapolis, Indianapolis, Pittsburgh and St. Louis.
Here are the top 20 of M25’s best Midwest cities for startups in 2022:
1. Chicago
2. Minneapolis
3. Indianapolis
4. Pittsburgh
5. St. Louis
6. Columbus, Ohio
7. Detroit
8. Ann Arbor, Michigan
9. Madison
10. Cincinnati
11. Kansas City, Missouri
12. Cleveland
13. Louisville, Kentucky
14. Milwaukee
15. Bloomington, Indiana
16. Lafayette, Indiana
17. Lexington, Kentucky (tie)
17. Omaha, Nebraska (tie)
19. Akron, Ohio
20. South Bend, Indiana
Although record amounts of venture capital have been raised, startup activity across the Midwest in 2022 has slowed down, according to M25. Late-stage and IPO markets cooling off in addition to a lack of major acquisitions could be responsible for the slowdown, wrote M25 managing partner Victor Gutwein in a blog post.
