Which U.S. cities have the hottest startup ecosystem?
The hottest startups are all located in cities with a strong startup ecosystem, according to a report from the McKinsey Global Institute (MGI) released Monday.
The McKinsey report found that the biggest city to get the most startup investments, according the McKinseys startup ecosystem scorecard, is San Francisco, which scored 100 on the index.
It also ranked in the top 10 for the number of startups with an active team and for the startup incubator industry, which the MGI considers to be an important indicator of the success of startups.
New York ranked number one for the city with the highest number of companies active in the startup ecosystem.
San Francisco ranked second with a score of 96.9.
The report found San Francisco has the second-highest startup incubators and accelerators among the top 50 U.s. cities with at least 250,000 residents.
San Franciscans also ranked first in the number and percentage of startups that received seed funding, according, McKinsey.
The most popular startups in San Francisco are Flipkart, Airbnb, Instacart, Zillow, Quirky, Tastykart and Zillog.
San Jose ranked third with a startup ecosystem of 71.6, followed by Seattle, which had a score in the low 60s.
Seattle was also the city to attract the most startups in the country, the report found.
More: Top cities with the most new startup jobs in the U.K., USA and Canada, the McKinks report said.
The ranking, which takes into account both the startup industry and local talent, was compiled using data from the UBI Foundation, a nonprofit that collects data on startup companies.
The MGI said that it aims to provide an insight into the growth of the startup economy, and how the United States can compete with other nations to attract top talent.
“We have a great startup ecosystem and we are seeing that as our cities grow,” says MGI chief economist David A. Johnson.
“But we need to continue to do a better job of getting our tech companies to incubate and grow, and keep a lid on our own talent shortage.
That’s why the MBI recommends the United Kingdom, Canada, and the United State, among other places, to make sure their local talent pools are in good shape.”