San Francisco’s SoMa neighborhood; Cambridge, Massachusetts’ Kendall Square; Lower Manhattan: These are the dense, walkable neighborhoods that have become the new hubs of America’s tech scene, as the center of gravity for venture investment and start-up activity shifts from suburbs to urban centers.
This urban shift in America’s venture capital-fueled innovation economy is detailed in my latest report from the Martin Prosperity Institute, released today at The Atlantic’s Start-Up City: Miami event. (The report builds upon and deepens the analysis developed initially in my Start-Up City series here on the site last year).
The chart below, from the new report, shows just how extensive the urban shift in venture capital investment and start-up activity has become. It is based on detailed zip code data provided to us by Dow Jones for the year 2011. The data cover 11 metros and two combined areas, the San Francisco Bay Area and Washington-Baltimore. Together, start-ups based in these metros accounted for almost three-quarters of venture capital investment in 2011.