Chicago ranks 7th for tech startup investments
GANNETT NEWS SERVICE October 11, 2012 1:42PM
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
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