How Smaller Cities Are Emerging as Tech Hubs

I relocated from the Bay Area to #Atlanta in 2012, where I soon founded Partpic. Choosing to locate a promising computer vision (AI!) startup in Atlanta over Silicon Valley was considered a risky bet. Now in 2024, it finally feels like the bet on Atlanta is paying off. For the first time, all the key players are in sync and moving forward in the same direction. This is a sea change from the disjointed landscape I encountered when I was starting up. I'm encouraged by the progress. A few notable updates: 1. The City of Atlanta has adopted a forward-thinking approach to innovation, led by visionary leaders. Mayor Andre Dickens, aptly nicknamed the "Tech Mayor," made a great choice appointing Donnie Beamer Jr., CFA, to spearhead the newly created Office of Technology and Innovation. In one year, Donnie and team have made notable strides, including partnering on a comprehensive analysis led by Parmeet Grover of BCG, outlining Atlanta's status and trajectory toward becoming a Top 5 Tech Hub. The study offers valuable insights here: https://lnkd.in/eA82mZXX 2. The magic of Atlanta Tech Village is now extending to South Downtown, thanks to David Cummings. I recently toured the area with David, Jon Birdsong, Aly Merritt, and April Stammel and was amazed by the project's scale and potential. It represents a significant opportunity to foster innovation in Atlanta for years to come. My sincerest hope for the development is that inclusion is part of its DNA from the start. Maynard Jackson gifted Atlanta the blueprint on how to do developments of this magnitude with economic equity at the center, and I am hopeful the Atlanta Ventures team will follow his example. King Williams wrote an excellent overview of the project's history and potential here: https://lnkd.in/e2jrMEFG 3. An increasing number of startup founders are scaling their businesses successfully. Although the number of unicorns remains modest (7), local entrepreneurs are redefining success—focusing less on fundraising and more on revenue, profitability, and ownership. Embracing and multiplying these types of businesses is crucial, as it insulates our ecosystem from the volatility of VC and ensures that when these companies exit, a larger portion of the value remains local, benefiting the community. We are focused on influencing entrepreneurs in our portfolio to adopt this mindset as are many ESOs like Endeavor Atlanta, Russell Innovation Center for Entrepreneurs, and Goodie Nation. These developments are a testament to Atlanta's evolution as a thriving hub for tech innovation and entrepreneurship, making it an exciting time to be part of this vibrant community. While there is still much work to be done (more on this later), I'm heartened at the earnest #collaboration happening toward a shared vision of accelerating inclusive entrepreneurship in Atlanta.

$1.3B vs $14B+. That's the stark difference in VC funding between Atlanta and other tier-2 tech hubs in 2023. Despite our Fortune 500 presence, diverse talent pool, and lower cost of living, Atlanta is falling behind cities like Austin, Boston, and Miami. This was no clearer than at this year’s Venture Atlanta Conference Alumni Dinner earlier this month. The event was great and full of 250+ investors and founders, but I could count the number of Black folks on two hands. Coincidentally, Goodie Nation was hosting its Happy Hour, which was full of founders from all backgrounds just a mile away. This contrast perfectly captures Atlanta's challenges and opportunities. We have amazing, diverse communities that often operate in separate worlds. From my perspective, here are 3 changes that could transform Atlanta into the tech hub for ALL founders: 1. Embrace the city’s diversity     Atlanta will never be San Francisco or New York, and that’s fine. Atlanta's cultural diversity is its superpower – we should be positioning ourselves as America's most inclusive tech ecosystem. Not the city for tech bros (Miami) or for young founders who can share a 200 square ft. apartment while they build (SF and/or NYC)     2. Break down community silos       Our tech communities (Goodie Nation, Atlanta Tech Village, ATDC, etc.) are strong individually but isolated. It’d be cool to see more collaboration between the communities so founders can connect more with folks outside their normal workplaces.     3. Expand access to early-stage funding     I wrote about this last month, but Atlanta VCs’ requirements are too strict for early-stage startups. $250k ARR for a pre-seed company will just push founders to build their companies in traditional hubs instead of here. We need more accessible funding opportunities to attract and retain innovative founders. This is clearly much easier said than done. The city is making great progress toward establishing itself as a tech hub, but there’s more work to do. For the Atlanta founders, investors, or others in the ecosystem, what do you think? What other changes does Atlanta need to compete with emerging tech hubs? What did I miss? - - - If you enjoyed this post, I wrote in detail about Atlanta’s potential as a tech hub in the first Equity Shift newsletter. It goes out today at 12pm ET. You can subscribe and check it out here 👉🏾 https://lnkd.in/dYFy-XTg

Here's what 46% of U.S. workers already know: sometimes the best career move is changing your zip code.   But LinkedIn's "Cities on the Rise" report reveals that the smartest moves aren't necessarily to the biggest cities. The data shows 25 mid-size metros where hiring growth and talent migration are creating tomorrow's economic powerhouses—and the opportunities for young professionals are compelling.   The Talent Migration Story: These cities aren't just growing; they're attracting skilled workers at unprecedented rates. The inflow-outflow ratios show more professionals moving in than out, creating vibrant professional communities in places like:   • Wilmington, NC: Coastal growth with GE investing millions in local facilities • Hartford, CT: Financial services hub with companies like Travelers leading expansion • Colorado Springs: Aerospace and defense emerging as a tech talent magnet • Richmond, VA: Healthtech sector growth with global companies choosing Virginia's capital   The Strategic Advantage: Early-career professionals entering these markets aren't just finding jobs—they're positioning themselves within growing ecosystems. When Oracle brings 8,500 jobs to Nashville or Micron Technology expands semiconductor manufacturing in Boise, they create ripple effects that benefit entire professional communities.   The Numbers Game: Portland, Maine offers $78k average income in a city where locals frequent beaches and art scenes. Compare that to similar coastal markets where the same lifestyle costs significantly more. Fort Wayne provides $60k average income with homes at $385k—numbers that allow young professionals to build wealth while building careers.   Industry Diversification Matters: These metros aren't betting on single industries. Milwaukee balances manufacturing with healthcare and professional services. Kansas City combines tech growth with its billion-dollar sports economy. Sacramento mixes government, tech, and healthcare.   The methodology behind this ranking isn't subjective—it's based on concrete metrics: year-over-year hiring growth, job posting increases, and talent migration patterns. These cities earned their spots through measurable economic momentum.   For biotech and pharmaceutical professionals specifically, your choices are limited to Boston, the Bay Area, NJ/NYC/Philly, and San Diego. As more companies return to the office, choosing to live in Chicago, for example, basically limits you to AbbVie, whereas living in the NJ/NY area allows many choices like Merck, Bristol Myers Squibb, Daiichi Sankyo US, & Regeneron, to name just a few.   The career calculus is changing. Success increasingly means identifying growth markets early and positioning yourself within them. The professionals who recognize this shift—and act on it—will likely find themselves ahead of those who default to traditional job markets.   What factors would influence your decision to consider an emerging market for your next career move? #CitiesontheRise

🚀 The Midwest Isn’t Emerging—It’s Mispriced. Michigan Is the Proof. As I fly from San Francisco to Detroit—and my friend Dug Song heads from Detroit to Indianapolis for the Global Entrepreneurship Network Congress, where he’ll engage with Brad Feld, Mark Cuban, Scott Dorsey, and others—I’ve been reflecting on a broader question: 💡 What conditions actually drive innovation ecosystems forward? Having helped build ecosystems from the Middle East to the Nordics, and now researching innovation and private markets with Professor David Brophy at the University of Michigan - Stephen M. Ross School of Business, I’ve explored this from both a practitioner’s and analyst’s lens. And one thing is clear: Michigan isn’t a blank slate. It’s structurally advantaged—and chronically undercapitalized. Yes, it’s still emerging—but the foundation is unusually strong. ✅ What already exists: 🏛️ Research Power: U-M ($1.8B+ in annual R&D), Michigan State University, and Wayne State University anchor a dense corridor—part of a 90+ college network statewide. 🦄 Unicorn Output: 40+ unicorns trace back to Michigan alumni—Duo Security, stockX, Llamasoft, Workit Health. 🏢 Enterprise Density: Global leaders in auto, healthcare, manufacturing, and defense—ideal for B2B innovation. 🌉 Infrastructure: Detroit-Windsor is one of North America’s busiest trade corridors. 👩💻 Talent + Cost Advantage: Technical talent at lower burn and higher retention than coastal hubs. 🌆 Scale: Detroit metro >4M—comparable to top-tier startup cities. 🏗️ Capacity for Growth: Affordable housing, redevelopment-ready parcels, cultural fabric ready to be reactivated. 🤝 Civic Momentum: Institutions like The Kresge Foundation and Wilson Jr. Foundation are laying deep roots. Dan Gilbert has played a central role in reimagining downtown as a vibrant innovation hub. 🌀 Symbolic Signal: Even the name of Ann Arbor–based Renaissance Venture Capital quietly affirms the renewal already underway. To be clear: I’m not affiliated with any of these efforts. I’m simply observing—independently and analytically—what the data and context reveal. Michigan doesn’t need to be transformed. It needs to be recognized. And it’s not alone. Much of Middle America shares this pattern: 💪 Structural strength. 💸 Missing capital. The opportunity isn’t to create ecosystems from scratch— It’s to activate the ones that are ready. It’s energizing. And I’m excited to be here. ✨ Skylar Bennethum Christine A. Cory Tincher Rob Jandernoa Song Foundation Kelly Kang Khalilah Burt Gaston Chris Rizik Dave McClure Hazel Reyna Shibu Ryan J. Munder Wassim Mourtada Anurag Chandra David Zhou Winter Mead Asilica Redshift Capital

The "tech talent tectonic shift" - Silicon Valley, Manhattan, and others no longer monopolize the market for tech talent. Let's dive in. 🔍 Great reporting from The Wall Street Journal points out a phenomenon we already intuitively know - the exodus of workers out of cities like San Francisco and New York City. Due to many factors, including how some cities handled the pandemic, emerging technology ecosystems across the U.S. and the growing employment of tech workers in non-tech industries have created more geographic competition. 🏙️ The Shrinking Share Lightcast, a labor-market analytics firm, in collaboration with The Brookings Institution, highlights that cities traditionally synonymous with technology are not just losing their proportionate share of U.S. tech labor; they're experiencing an absolute decline in their tech workforce. For instance, Silicon Valley saw a reduction of nearly 1,400 tech workers up to 2023, a trend likely exacerbated by layoffs at tech giants. Contrastingly, areas like Denver, Salt Lake City, Miami, Nashville, and particularly Texas cities - Dallas, Austin, and Houston - are becoming new tech hotspots. These cities have witnessed significant tech workforce growth, with the Dallas-Fort Worth metro area alone adding 30,000 tech jobs in two years. 🌱 Growth Drivers: Local Ecosystems and Diverse Employment - Local Tech Ecosystems: New tech clusters are forming, fueled by both local and external investments. These ecosystems are self-sustaining, with new tech firms attracting more talent and fostering additional tech startups. - Broad-based Tech Employment: About 60% of tech workers in the U.S. and Canada are now employed in traditionally non-tech industries like healthcare and education. This diversification in employment opportunities is decentralizing the tech workforce. 📊 Case Study: Cart.com's Location Dynamics Cart.com's journey exemplifies this trend. Initially founded in Houston, then moved to Austin, and eventually returning to Houston, the company's location strategy reflects the need for diverse talent pools that cities like Houston offer, beyond just software development expertise. 📈 Future Outlook: Decentralizing Innovation While certain areas will continue to lead in specific tech domains (e.g., AI in the Bay Area, biotech in Boston), the overall nature of tech jobs is evolving. More cities are now equipped to support "new collar" tech jobs focused on implementing innovative technologies rather than solely creating them. This evolution suggests a continued dispersion of tech jobs across various U.S. cities, reshaping the traditional concept of tech hubs - good to have more geographic competition! Read more - link in comments. #TechTalent #SiliconValley #InnovationMigration #TechHubs #FutureOfWork

***Silicon Desert: How Phoenix Became Tech's Hottest New Hub*** -Phoenix, traditionally known for its sun-soaked retirement communities and MLB spring training, is silently transforming into America's next major tech hub. -The desert metropolis has become a powerhouse for cutting-edge innovation, anchored by TSMC's massive $65 billion chip manufacturing investment. Beyond semiconductors, Phoenix's perfect grid layout and consistent weather have made it a prime testing ground for autonomous vehicles. Waymo's robotaxis now covers 315 square miles, and Lucid Motors' massive manufacturing facility is just south of Phoenix. Even Amazon has chosen the city for its ambitious Prime Air drone delivery program. Industry experts point to Phoenix's winning formula: business-friendly policies, strong university partnerships, a growing talent pool, and a thriving tech ecosystem—proving that innovation can flourish even in the desert heat. #silicondesert #amazon #waymo #tsmc #lucidmotors #engineers #ai #manufacturingengineering #semiconductors

I look at this map and wonder: Why are certain cities density leaders? Why do rising stars punch above their weight? It often comes down to: → Depth of technical IP → Strength of founder-led businesses → Local ecosystem’s ability to build (not just raise) Take Cambridge. Top of the density chart. Because deep-tech founders there think in decades. Or Vilnius. You won’t find 50 unicorns. But you’ll find high-margin SaaS companies that never required VC. Istanbul. Zagreb. Tallinn. These aren’t the loudest ecosystems. But they consistently produce companies that are profitable and global. So if you're a founder building in... → Cambridge or Munich: double down on defensibility → Zagreb or Vilnius: lean into your capital-light growth → Vienna or Prague: win with unique GTM motions → Zurich or Amsterdam: master cross-border scale → Lisbon or Kyiv: design with optionality → Istanbul or Tallinn: think visibility In Europe, geography doesn't have to be your limit. It can be your edge - if you know how to play its strengths. Dealroom's Tech Ecosystem 2025 report: https://lnkd.in/da52mGJc 𝐖𝐡𝐨 𝐢𝐬 i5invest: We are a corporate development firm with access to 150K+ top decision-makers in Strategy, Business Development, and M&A. We provide innovative tech founders with insights, expertise, and access to our network to take their companies to the next level. #growth #tech #strategy #startups

Among Tier-2 cities in India, Coimbatore is rapidly emerging as a major innovation hub for IT and product engineering services. Zinnov rates Coimbatore as a top destination for Global Capability Centers (GCCs): https://lnkd.in/eGPiugFZ Coimbatore is one of the most industrialized cities in Tamil Nadu. As Wikipedia explains (read: https://lnkd.in/e-2b9edT ) : - Coimbatore is known as the "Manchester of South India" because of its large textile industry. - Coimbatore is a major center for the manufacture of automotive components in India with car manufacturers Maruti Udyog and Tata Motors sourcing up to 30%, of their automotive components from the city - Coimbatore is also referred to as "the Pump City" as it supplies nearly 50% of India's requirements of motors and pumps - Coimbatore is one of the largest exporters of jewelry renowned for diamond cutting, with 3,000 jewelry manufacturers employing > 40,000 goldsmiths Given its rich industrial background, Coimbatore is an ideal city to launch "hardware" startups and R&D Centers that can build "physical" products For too long, India has been known as a land of "bits" (IT services). Now, we need to integrate the "bits" (IT) with the "atoms" (manufacturing) so Indian can manufacture digitally-enriched physical products. Coimbatore could become the go-to place for "phygital innovation" that requires engineers and scientists well-versed in both IT *and* industrial processes. That's why I am super excited to visit Coimbatore on December 5 to interact with members of the local innovation ecosystem. I will be sharing with them insights from my new book The Frugal Economy: https://lnkd.in/e9rXpQFE I will discuss with entrepreneurs, investors, academics, business leaders in Coimbatore how they can join forces to build the 3 pillars of the frugal economy: - B2B Sharing - Distributed (Micro)Manufacturing - Triple Regeneration I believe Coimbatore has the right "hard" and "soft" infrastructure to develop a world-class Frugal Economy that delivers greater economic, social, and ecological value while "valorizing" (leveraging optimally) all local resources. I thank Naved Narayan for inviting me to Coimbatore, Mathan Prakash for organizing my visit, and HETAL SONPAL for hosting an interactive event with local entrepreneurs. Guidance Tamil Nadu nasscom TiE Coimbatore

India's Hidden IT Hubs: Where Hustle Meets Global Impact Everyone talks about Bangalore and Hyderabad as the IT capitals of India. But if you look closer, you'll find a different story playing out in small streets across the country. Take Karol Bagh in Delhi, T-Nagar in Chennai, or Coimbatore’s coaching lanes.    These are places where:   - SAP, Python, AI, and DevOps are taught in rooms no bigger than a garage.   - ₹5K-₹15K is all it takes to learn a skill that can "change your life".   - Classes run early mornings, late nights, and even on weekends.  It’s not fancy.   - The chairs creak.   - The whiteboards are stained.   - There are no coffee machines or polished PowerPoint presentations.  But here’s the thing: it works.  These hubs produce thousands of IT professionals every year – the kind of talent that ends up working for global giants in the US, UK, and Europe.   - Students sitting shoulder to shoulder today will be consultants at SAP, Amazon, or Microsoft tomorrow.   - What they lack in luxury, they make up for with grit and relentless ambition.  These hidden hubs prove something the world often forgets:   - Degrees don’t guarantee success. Skills do.  - Comfort doesn’t create achievers. Hustle does.  The next time you see an IT pro walking into a boardroom in New York or Silicon Valley, know this:   - They might have started their journey in a cramped classroom in Coimbatore or - a bustling coaching center in Delhi’s Karol Bagh.  Raw → Relentless → Real.  This is where careers are made, and global dreams are born.  India’s hidden IT hubs: Small spaces, big futures. P. S. Post your experience in Comments

The Rising Rent Reality – And Why We Chose “Work From Hometown” at GWC Data.AI - FYI, Work From HomeTown is Not Work From Home Having offices at Tier 2 & 3 cities. We are successfully running on this model for last 4 years. Have you seen the latest rent stats for Indian cities? These aren’t just numbers, they’re signals. Signals that our traditional city-centric work culture is increasingly unsustainable for both employers and employees. Work From Hometown (WFHT) At GWC Data.AI, we didn’t wait for the housing crisis to dictate our next move. As early adopters of the Work From Hometown model, we believe: ✅ Great work doesn't need a metro pin code. ✅ Top talent often lives outside Tier-1 cities. ✅ Employee well-being begins with family, familiarity, and financial freedom. While many companies focused on “Return to Office,” we doubled down on Return to Roots. Why This Model Works: Lower Cost of Living = Higher Employee Happiness An employee living in Coimbatore, Trichy, or Madurai spends far less on rent, food, and transport than someone living in Mumbai or Bengaluru. Wider Talent Pool: We’ve hired brilliant minds from smaller towns. People who might not have relocated to a metro, but are now part of something impactful. Real Estate Savings for the Company No high-rent corporate HQs. That’s capital we reinvest into tech, innovation, and people. Hyperlocal Innovation Being rooted in different geographies helps us better understand and serve our clients across domains and regions. It's More Than a Model. It’s a Movement. The world is changing. Housing costs are skyrocketing. Commute times are soul-crushing. Urban stress is real. It’s not cost-efficient—it’s human-centric. And the proof? We’ve delivered high-impact Data & AI projects globally with teams working from their hometowns. Productivity, innovation, and collaboration have never been higher. Final Thought What if the future of work isn’t skyscrapers or remote islands... but your hometown? We bet on this future. And it’s working. Let’s build the future, closer to home. #WorkFromHometown #DataAI #FutureOfWork #DigitalTransformation #LifeAtGWC