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Austin booms as a top U.S. startup hot spot, says new ranking

Austin booms as a top U.S. startup hot spot, says new ranking

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A new report finds both Austin and Texas rank highly based on startup creation. Photo by Hero Images/Getty

Austin is a bustling hub for startup activity — and it has the numbers to prove it.

A new ranking from real estate investment marketplace Roofstock places Austin at No. 3 among the major U.S. metro areas with the highest rates of startup formation. Roofstock's ranking, based on data from the U.S. Census Bureau, puts the Austin area's startup formation rate at 10.61 percent percent. The startup formation rate refers to the number of new businesses in a given year divided by the total number of businesses.

Here's the additional data for the Austin metro area:

Number of annual startup formations: 3,858
Number of annual new jobs created by startups: 21,357
Number of jobs created by startups as a share of all new jobs: 16.49 percent

Over the past 18 months, Austin racked up two No. 1 accolades for its entrepreneur-friendly culture, including most affordable cities for startups and the best city for startups.

Rounding out the top 3 is the Las Vegas metro in the No. 1 spot on the Roofstock list, with a startup formation rate of 11.44 percent. Orlando, Florida, follows at No. 2 with a startup formation rate of 10.61 percent.

Two other Texas metros appear on Roofstock's list: Dallas-Fort Worth at No. 5 (startup formation rate of 9.82 percent) and Houston at No. 10 (startup foundation rate of 9.48 percent)

Here's the additional data for the Dallas-Fort Worth metro area:

Number of annual startup formations: 10,731
Number of annual new jobs created by startups: 69,696
Number of jobs created by startups as a share of all new jobs: 15.11 percent

Here's the other Houston startup data cited by Roofstock:

Annual number of startup formations: 9,214
Annual number of jobs created by startups: 55,475
Number of jobs created by startups as a share of all new jobs: 14.44 percent

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This story originally ran on our sister site, InnovationMap