US Cities With the Most VC Investment in 2023 | TRUiC (2024)

Startups in Silicon Valley and beyond are breeding innovation, citing favorable government regulations and skilled workforces. These cities boast the most venture capital investment in the country in 2023, investing in companies from biotech to food innovation.

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Unsurprisingly, San Francisco is the biggest venture capital market in the United States, with over $35 billion in venture capital invested in the area in 2023. One of the chief reasons San Francisco is a strong venture capital hub is its location. San Francisco is in close proximity to Silicon Valley, the heartland of technology and innovation. This geographic advantage makes it easier for venture capitalists to interact with a high concentration of tech startups and established tech giants.

Secondly, San Francisco and the Bay Area have a history of successful tech companies, from early pioneers like Hewlett-Packard to modern giants like Google and Facebook. This success breeds confidence among investors in the region's potential.

There were several examples of the strength of this VC hub in 2023, including investments secured by Evolv AI of $13.3 million, Engine Biosciences, which secured a $27 million Series A round, and Agtonomy, which raised a $22.5 million Series A round.

New York City is an impressive metropolis, and its market for venture capital is no exception. The city’s economy is diverse, encompassing finance, technology, fashion, media, and more. This diversity attracts a wide range of startups and entrepreneurial ventures, offering varied opportunities for investors.

As a global financial center, NYC offers easy access to funding and financial expertise, as well as a growing tech ecosystem supported by innovation hubs, accelerators, and incubators. Plus, the city is home to numerous Fortune 500 companies and global corporations, providing startups with potential clients, partners, and networking opportunities.

Some of the most notable investments to come out of New York in 2023 included Vestwell’s $125 million funding round, Headway’s $125 million Series C round, and Imprint’s $75 million Series B funding round.

While not as prominent as their northern neighbor, San Francisco, Los Angeles is a strong venture capital itself, with roughly $11 billion in venture capital invested in LA in 2023. This is largely due to the city's diverse economy, thriving tech scene, and influence by the entertainment industry.

Known as “Silicon Beach,” the region has a growing tech industry, with a concentration of startups in areas like Santa Monica and Venice. The presence of major tech companies like Google, Facebook, and Snapchat in the area also fosters a conducive environment for tech startups. Plus, proximity to Hollywood and the entertainment industry offers unique opportunities for ventures in digital media, gaming, virtual reality, and other creative sectors.

There were several impressive investments made in the LA area in 2023, including Metropolis’ $1.7 billion round, Iambic Therapeutics’ $100 million Series B round, and coffee company La Colombe’s $300 million round.

With many tech companies relocating from California to Texas in recent years, it is no surprise that Houston has continued to grow as a venture capital hot spot. The city boasted over $7 billion in venture capital investment in 2023.

This is largely due to a growing tech ecosystem, low cost of living, and the city being home to the world’s largest medical complex, fostering innovation in healthcare and biotech especially. Possibly the strongest draw, however, could be the city’s business-friendly initiatives and legislation compared to other cities.

Some of the most impressive investments made in Houston this year include Axiom Space’s $350 million funding round, MacroFab’s $42 million funding round early in the year, and Kahuna Workforce’s $23 million Series B round.

Chicago is a hub for finance, commerce, and many more industries. Their venture capital landscape follows suit, with over $6 billion in VC funding deployed in the city in 2023. Similar to New York, the corporate presence in Chicago is impressive, with numerous Fortune 500 companies in the area providing access to founders for partnerships, mentors, and potential customers.

In addition to this, the city’s diverse economy is supported by an impressive workforce due to the University of Chicago and Northwestern University calling Chicago home. Finally, early stage companies can find a myriad of support opportunities in the way of incubators, accelerators, and coworking spaces in the windy city.

There were many VC investments of note in the city in 2023, including Invenergy’s $1 billion round, Fly.io’s two raises totaling $95 million, and NanoGraf Corporation’s $65 million Series B round.

With the presence of world-renowned universities like Harvard University and the Massachusetts Institute of Technology (MIT), Boston’s venture capital landscape is supported by a highly educated workforce and cutting-edge research capabilities.

The city boasts a vibrant startup ecosystem with incubators, accelerators, and networking events fostering collaboration and innovation. Additionally, the strength of the industries in Boston is notable, especially biotechnology, healthcare, and technology.

All of this considered, there were several VC investments made in the area in 2023, including Lightmatter’s $155 million Series C round, Openly’s $100 million Series D round, and Alkeus Pharmaceuticals’ $150 million Series B round.

Scottsdale is home to a vibrant entrepreneurial community as well as top universities and research institutions in and around Scottsdale, such as Arizona State University, providing access to a skilled and educated workforce.

The state of Arizona itself is super business-friendly, with lower taxes and regulatory burdens compared to other states. This pro-business climate is conducive to startups and attracts venture capitalists looking for promising investment opportunities. Plus, Scottsdale's location in the Southwest United States offers strategic advantages, including proximity to major markets like California, without the high costs associated with those areas.

Of the over $4 billion in venture capital invested in the Scottsdale area in 2023, there were notable investments such as Lessen’s $400 million Series C funding round, YellowBird’s $6.3 million round, and evolvedMD’s $14 million Series A round.

Housed in Silicon Valley, Palo Alto has a history of successful startups and technology companies in the area, including giants like Google, Facebook, and Apple. This track record attracts more entrepreneurs and investors to the area, creating a self-reinforcing cycle of success.

Plus, Palo Alto and the broader Silicon Valley area host a dense network of venture capitalists, angel investors, and private equity firms. As well as universities like Stanford University, which is a major source of innovation, research, and talent.

The area boasted over $4 billion in venture capital invested in 2023. Some of the investments that stood out were Inflection’s $1.3 billion Series B round, CARGO Therapeutics $200 million funding round, and Vannevar Labs’ $75 million Series B funding round.

Seattle is home to tech giants like Amazon and Microsoft, fostering a robust technology ecosystem and attracting VCs. Plus, its proximity to Silicon Valley gives the Washington city a geographical advantage.

Seattle's culture of innovation, driven by a mix of established companies and startups, encourages new ideas and ventures. While the presence of major tech companies and top-tier universities ensures a pool of talented individuals, from engineers to entrepreneurs, making it an attractive place for startups.

In 2023, some of the most noteworthy venture capital investments in Seattle included Rebellyous Foods’ $9.5 million funding round, A-Alpha Bio’s $22.4 million Series A round, and DexCare’s $75 million funding round.

Santa Clara, located in the heart of Silicon Valley, is known as a strong venture capital hub due to several key factors. To start, the city is surrounded by some of the world's largest and most influential technology companies. This proximity provides easy access to a wealth of industry knowledge, networking opportunities, and potential partnerships.

Furthermore, Santa Clara and the surrounding Silicon Valley area host a large concentration of venture capital firms. These firms provide the necessary funding and resources that startups need to scale their operations.

A few of these impactful VC investments made in 2023 include Vantage Data Centers’ $1.3 billion raise, Netskope’s $401 million convertible note raise, and CloudMinds' $138 million Series C funding round.

The information presented in the listicle above is subject to the inherent complexities and variability of venture capital reporting. Due to the lack of standardized data collection methods across different investors, the data should be considered approximate and may differ from other sources.

Our list reflects a selection based on available data and may not encompass the entire scope of VC activities across the US. Please use caution when making comparisons or relying on this data for business or investment decisions.