Tech Momentum Gathers Outside the Silicon Valley and New York City

Think Columbus, Ohio and Pittsburgh, Pennsylvania.

1 minute read

May 22, 2019, 7:00 AM PDT

By James Brasuell @CasualBrasuell


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"It had to happen, but why is it happening now? Secondary tech hubs – outside the orbit of Silicon Valley and New York – are showing undeniable momentum this year," reports Conor Sen.

Sen writes the story after returning from a tour of Columbus, Ohio and Pittsburgh, Pennsylvania with "venture capitalists and team members from the early-stage venture capital firm Bloomberg Beta" for the third round of the Comeback Cities Tour.

A "confluence of forces" has created this momentum for secondary tech cities, according to Sen, such as closing logistical gaps, the spread of urban amenities (the "Brooklyn-ization of America," as described by Sen), lower costs in non-coastal cities, and signals from tech giants.

"As a result, founders and investors are growing more comfortable with companies being founded and scaled outside of traditional hubs," writes Sen.

"It's not clear right now just how transformative or long-lasting this trend could be for secondary hubs. Business people in both cities talked about challenges they share being in nontraditional tech cities: finding workers with startup rather than traditional corporate experience, founders still being somewhat reliant on getting investors in San Francisco or New York to buy into their stories rather than being able to tap local capital, and a lack of successful startup exits or IPOs that would get the local community to have more confidence in startup ecosystems."

Tuesday, May 21, 2019 in Bloomberg

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