When it comes to the best states for tech start-ups in the US, cities in California, Florida, Texas and Massachusetts can all stake a claim.  

California (population 39 million) 

California is the third largest state by area and the third most populous state in the US. Arguably one of the most well-known tech company locations in the world, California is home to Silicon Valley.   

With excellent infrastructure, an established tech workforce and growing markets for tech start-ups, California is undoubtedly one of the best states for tech start-ups. It attracts the most in venture capital of all the US states and has a high early survival rate of more than 80%.  

Big tech companies with corporate headquarters in California include Google, Apple and Hewlett-Packard.  

This established tech business environment continues to attract new tech talent and entrepreneurs, and the state is known as a location where venture capital will back start-ups. 

In January 2023, Paris-based quantum computer startup PASQAL announced a California based round of investment worth around100 million euros ($109 million), creating further jobs and showcasing how the tech industry continues to view the state as a hub for sector investment.

Florida (population 21.5 million) 

Florida is a major hub for high-tech start-ups in the Americas. At the heart of this hub is Miami, a coastal metropolis that has become a major centre for start-ups and expansions in multiple industries. These sectors include finance, commerce, culture, arts, and international trade. 

With a UBS study of 77 world cities placing Miami as the second richest city in the US it is not surprising that it is ranked as one of the best places to start a business in the country, with foreign investment in US high-tech companies a major factor in the local economy. 

Miami continues to enjoy the increased business activity for both high-tech start-up ventures and expansions, with downtown Miami also boasting one of the largest concentrations of international banks in the US.  

Tech is a rapidly growing sector in Miami, with Google, Facebook, Twitter and Apple taking advantage of a highly skilled local workforce and state tax incentives for start-up businesses.  

Joining the competition for tech start-ups in Florida is Tampa, which is located on the Gulf Coast and is forecast to become one of the tech capitals of the US south in the coming years.  

As home to more than 50 software and IT companies as of 2022, Tampa is currently hosts more than 25% of Florida’s high-tech jobs.  

With a forecast for another 2,000 jobs to be created in the high-tech sector in 2022, Florida continues to be one of the best states for tech start-ups. 

Massachusetts (population 6.9 million) 

Boston is the capital and most populous city of Massachusetts and the economic and cultural hub of Greater Boston, which is home to about 4.8 million people.  

As one of the best states in for tech start-ups, Massachusetts is home to a thriving and top-ranked innovation economy and the world-renowned Massachusetts Institute of Technology (MIT).  

With established and leading technology companies, academic institutions, incubators, entrepreneurs and researchers, Massachusetts is one of the best states for tech start-ups, new businesses and new technology initiatives and development. 

Large tech companies including Dell EMC and LogMein are headquartered in the state, which showcases the benefits of starting a tech business there, not least because the workforce is known to be tech-driven, with a constant stream of graduates from MIT and Harvard.  

Boston is at the heart of this scene, with multiple businesses and entrepreneurs from all over the country relocating to the city. Its tech industry is enjoying growth with an increasing number of jobs being created in the sector. 

Texas (population 29 million) 

As the capital of Texas, a state considered to be one of the best in the US for tech start-ups, Austin enjoys a start-up growth rate that is rapid by any standards. With a workforce considered to be creative and innovative, it is an attractive option for employers to consider setting up a business in the city. 

Greater Austin boasts a gross domestic product (GDP) of about $86bn and is a major centre for high-tech start-ups and expansions.  

With a profusion of tech subject-related graduates from the engineering and computer science programmes at the University of Texas at Austin, companies looking to expand in the city have a steady source of potential employees.

Austin regularly ranks among the best places to start a tech business in the US in Forbes’ rankings, with a growing number of high-tech companies in the region both in terms of start-ups and expansions.  

Leading high-tech industry companies with operations that continue to expand their presence in Austin include 3M, Apple, Amazon, AMD, Cisco Systems, eBay, Electronic Arts, Flextronics, Facebook, Google, Hewlett-Packard, Nintendo and Tesla.  

With this strong business community and government tax incentives, Austin continues to be a good choice for business start-ups, expansions and relocations.  

Information and from US Census Bureau, US Data and Statistics, Texas Commerce, City of Austin, Florida Chamber of Commerce, California State Statistics.