The venture capital ship has righted itself, but it has not yet recovered from its 2022 slowdown.
U.S. startups received $27.4 billion in angel investments and VC funding in Q2 of 2023. That’s roughly in line with the figures from Q1 ($24.1 billion) and Q4 of 2022 ($27.4 billion), but it’s a 53% year-over-year decrease, according to York IE Fuel.
Despite this new normal, there’s no shortage of successful, sustainable startups emerging and securing the capital they need to grow. And although many traditional hubs continue to see a drop in startup funding, business is booming in lots of other cities.
That’s why we publish the York IE Fastest-Growing Startup Cities report.
Fastest-Growing Startup Cities
The report highlights these 10 U.S. cities:
- Richmond, Virginia
- Minneapolis, Minnesota
- Woburn, Massachusetts
- Berkeley, California
- Cincinnati, Ohio
- Palo Alto, California
- Cleveland, Ohio
- South San Francisco, California
- Cambridge, Massachusetts
- Sunnyvale, California
The full report provides detailed Q2 funding information for each of the 10 cities, including total funds raised, number of rounds and the companies that had the biggest rounds.
Most Venture Capital Investment by City
Additionally, the report ranks the 10 biggest U.S. startup cities with the most venture capital investment:
- San Francisco, California
- New York, New York
- Palo Alto, California
- Cambridge, Massachusetts
- Austin, Texas
- Mountain View, California
- Berkeley, California
- San Diego, California
- Seattle, Washington
- Chicago, Illinois
To access the full York IE Fastest-Growing Startup Cities, Q2 2023 report, click here.
