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Chicago ranks 7th for tech startup investments

MotorolMobility will move its Libertyville headquarters Merchandise Mart company Mayor Rahm Emanuel announced Thursday. Mart already is home 1871 home

Motorola Mobility will move its Libertyville headquarters to the Merchandise Mart, the company and Mayor Rahm Emanuel announced Thursday. the Mart already is home to 1871, a home to tech startups. | Photo by Scott Stewart/Sun-Times

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Updated: November 13, 2012 6:25AM



It’s a given that the San Francisco area, including Silicon Valley, is the technology capital of the world. Seven of the top 10 most-visited websites are based there, including Google, Yahoo, Facebook and Ask. But how does the rest of the country fare for tech start-ups?

USA Today asked the National Venture Capital Association to rank the top 10 cities for start-ups, based on dollars invested in young tech companies in 2011.

Chicago, home to social-shopping powerhouse Groupon and online travel agent Orbitz and where the tech scene is dominated by Motorola Mobility, ranked seventh. A startup is formed every 48 hours here, according to the Built in Chicago website. Among them: GrubHub, for online restaurant ordering, and Peapod, for home delivery of groceries.

The top 10 cities for tech:

1. San Francisco area/Silicon Valley: (known for Apple, Facebook, Google, Twitter); 3,442 startups; $11.8 billion invested in 2011 for 430 companies.

2. Boston: (known for TripAdvisor, Kayak, Carbonite); 700 startups; $2.77 billion invested in 2011 for 285 companies.

3. New York: (known for Foursquare, Tumblr, Fab.com); 1,844 startups; $2.73 billion invested in 2011 for 332 companies.

4. Los Angeles area: (known for Demand Media, Break Media, Citysearch, Electronic Arts, Viddy); 1,507 startups; $2 billion invested in 2011 for 129 companies.

5. Washington, D.C.: (known for Living Social); 261 startups; $979 million invested in 2011 for 146 companies.

6. San Diego: (known for Qualcomm, Slacker); 329 startups; $915 million invested in 2011 for 89 companies.

7. Chicago: (known for Groupon, Orbitz, Motorola); 556 startups; $750 million invested in 2011 for 79 companies.

8. Austin: (known for Dell, Photodex, Bedandbreakfast.com); 487 startups; $646 million invested in 2011 for 70 companies.

9. Boulder/Denver: (known for Mapquest, Photobucket); 395 startups;. $584.6 million invested in 2011 for 85 companies.

10. Seattle: (known for Microsoft, Amazon, Zillow, T-Mobile); 441 startups; $580 million invested in 2011 for 96 companies.

Source: National Venture Capital Association, Angellist.com



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