It's not just Texas' weather that's hot. Three Lone Star State cities recently made Inc. magazine's list of hot startup cities, with Austin landing at No. 2.
The list came out of the Inc. 5000 report — the magazine's list of the fastest-growing 5,000 privately held companies in the United States — and was ranked by the three-year revenue growth of each of the cities' companies.
Austin boasted a three-year revenue growth of 259 percent, with 87 companies on the 2019 Inc. 5000 list.
The Capital City is praised for its "high rate of entrepreneurship and job creation" in the article, as well as for having outposts for top tech companies like Amazon, Apple, and Google. Inc. also highlights "innovative food businesses," including veggie noodle maker Cece's Veggie Co. (No. 3) and handcrafted chocolatier Maggie Louise Confections (No. 650).
Another Texas city on the list, Houston (No. 9), had a three-year revenue growth rate of 117 percent and 84 Inc. 5000 companies. The article calls out Houston for its construction industry, which "grew tremendously to help rebuild and repair" after Hurricane Harvey hit in 2017.
Right behind Houston is No. 10 Dallas, which had a three-year revenue growth of 113 percent and 74 companies on the 2019 Inc. 5000 list. Inc. calls out Dallas for its "low regulations, zero corporate income taxes, and the Dallas Entrepreneur Center, or DEC, which is a nonprofit organization serving as a hub for startup networking, funding, and mentorship."
Here's the full list:
- San Francisco
- New York City
- San Diego
- Los Angeles
A version of this story originally was published on InnovationMap.