Charting the 'Urban Shift' Among Technology Start-Ups

Richard Florida analyzed the urban shift in America’s start-up economy for a report from the Martin Prosperity Institute. He found that in seven out of 13 metropolitan areas, more than half of venture-capital funds went to businesses located in city centers or the walkable suburbs.

Why the switch from the suburbs to downtown? Florida identifies several factors. First is the tendency of talented workers to cluster in urban areas. Then there’s the efficiency factor: dense areas enable companies to offer workers more amenities for less. Finally, the fact that so much of today’s tech is based in the virtual world means that it no longer requires large campuses.