A new report details the startup hubs around the world growing the fastest, with several U.S. cities cracking the top 20 — including Miami.
Venture capital data firm PitchBook recently introduced its Global VC Ecosystems ranking, a look at both the most developed markets for venture capital activity and cities seeing the fastest growth. The top startup cities based on size and maturity are the usual hot spots: San Francisco, New York, Beijing, Shanghai, Los Angeles, Boston and London.
But in its ranking of the fastest-growing cities for venture activity, PitchBook's report uncovers where startups are quickly gaining momentum.
Topping the list is Dubai, followed by Detroit, the fastest-growing U.S. city on PitchBook's report.
The next-fastest growing U.S. startup cities are Raleigh, North Carolina; Houston; Indianapolis; Miami; Philadelphia and St. Louis.
PitchBook ranked cities by "growth score," analyzing one-year, three-year and five-year growth rates for venture capital deal, exit and fundraising activity. The goal was to provide a multi-year look at each city's startup growth to avoid outlier years where a city saw one or two mega deals.
Miami had a growth score of 60.5 based on an analysis of the six-year period between third quarter of 2017 to the third quarter of 2023. In comparison Dubai – the highest-rated market – had a score of 72.8. During that period, Miami companies raised $17.9 billion over 1,975 deals. There were 116 exits valued at $10.6 billion.
PitchBook categorized Miami as an "emerging market" along with Paris, Berlin and Washington, D.C.
U.S. cities make up 35% of the fastest-growing startup markets in the report. Europe and U.S. cities combined make up 65% of the list.
By ranking cities by fastest growth, the report identifies areas of interest for venture investors, PitchBook said, even if those cities have less developed startup ecosystems compared to traditional tech hubs.
"Cities with high growth scores may have less developed VC footprints, but their potential upside with better value for money investments and future growth could be greater," the report said.
San Francisco continues to be home to the most developed venture capital ecosystem in the world "by a considerable amount," the report said. New York, Los Angeles, Boston, Washington, D.C., Seattle, Austin, San Diego and Denver are also among the most mature ecosystems.
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