Visitors to HQ Raleigh or The American Underground or The Frontier or First Flight Venture Center and other startup-focused facilities across the Research Triangle region are made quickly aware of something: Entrepreneurs are starting and growing businesses all over. And a new report verifies just how booming the startup sector is.
The U.S. Chamber of Commerce and two partners rank the “tech Triangle” as it is called in the report No. 4 nationally as a startup hub.
“Raleigh-Durham may not be one of the largest startup communities in the country, but its well-connected ecosystem, density of startup activity, strong cultural foundation and deep talent pool positions it well to thrive in the new digital economy,” says the Innovation that Matters 2016 report that was issued Wednesday.
“Indeed, due to the region’s ecosystem expanding beyond traditional boundaries of its metropolitan area, the region likely performs even better. The ingredients are all there for the region to continue to compete and win.”
The report is not entirely positive, however. It notes a concern about demographics and an inability to capitalize on some startup sectors, such as education and energy.
But the overall tenor is positive, based in part on visits to the area by researchers and analysis of data across a broad spectrum.
More than 250 startups alone can be found at The Underground, which operates in three locations across Durham and Raleigh. (Capitol Broadcasting, the owner of WRAL and WRAL TechWire, also owns The Underground.) Plus, HQ Raleigh, which offers shared office space, is filled and adding additional space. Holly Springs recently opened its own shared facility. There also are other operations across Cary, Chapel Hill, and the Park itself.
The report measures metro areas across a variety of criteria, from quality of life to education of its population, to types of startups and “exits” – or startup companies that grow and are acquired or possible hit the stock market as publicly traded companies.
RThe Triangle ranks especially strong in “connecting startups to corporations” (second) and quality of life (tying for second place with Austin, Texas.)
A healthy sector
Giving Raleigh-Durham a boost is the growing number of health tech ventures such as data firms Validic and Valencell.
“The Innovation That Matters report found that Raleigh-Durham’s strongest digital startups are concentrated in health tech, for which it ranks seventh,” the researchers point out. “The report shows that the area is taking advantage of its specialization in the health industry, where it ranks fifth among those surveyed.”
The authors also recognize the state’s strong life science industry (one of the nation’s largest biotech/pharma/life science service hubs) and medical research from the region’s universities.
“Raleigh-Durham’s established health cluster has seemingly bolstered the startup environment within that particular sector,” the report says.
“This is an example of leveraging a city’s historical strengths to build up a unique position in the digital economy.”
The wealth spreads
An interesting graphic embedded in the report also notes how startups are spreading across the Triangle, not in just one or two areas, over the past four years.
Boston tops the rankings. The top 10 are:
- Boston
- Bay Area
- Denver
- Raleigh-Durham
- San Diego
- Austin, Texas
- Los Angeles
- Philadelphia
- Washington
- New York
Working with the Chamber were the Chamber’s FreeEnterprise.com, and 1776, an economic development organization.
“We built 1776 to help entrepreneurs succeed wherever they live, but they need a strong base of support in their communities,” said Donna Harris, cofounder & co-CEO of 1776. “Our research over the past year shows how cities can build that infrastructure and draw on national networks to support not only startups, but the innovative companies that have always powered their regions.”
Read the report at:
