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In the case of Boston, it has been a major hardware/software innovation hub. There are probably a dozen software companies based in Boston, right this second, waiting to IPO.
Can you explain why you think Bostons tech industry is dying?
Dinosaurs - IBM, DEC, EMC, Wang - East Coast tech companies that are either dying or dead.
Boston's highest market cap tech company that's less than 50 years old is Hubspot, with a $26.3B market cap, about 1/100th of Apple's and 295th most valuable nationally. New York's is DataDog at $30.8B, ranked 265. What's missing in the VC stats shared here is valuations because they're much higher in the Bay Area among private companies than in the East Coast.
There are approximately 30 tech companies less than 50 years old among the top 200 in the US by market cap. All are based in the Bay Area, or started in the Bay Area, except for two in SoCal - Qualcomm and Broadcom, and two in Seattle - Amazon and Microsoft.
A Boston company that should be worth a lot more is Pegasystems. They did CRM before Salesforce. But they waited until the 2010s to do a cloud version because like most East Coast-based companies they were too slow moving, too conservative, and too risk averse. They went public four years before Salesforce was even founded yet are worth 1/50th of Salesforce today.
Boston's strength is biotech, it's tech industry isn't dying, it's dead, and has been for decades.
Sort of. Each venture capital investment would be based upon an estimated total valuation. If someone is paying $80 million for a 10% share, the company is said to be worth $800 million. At least that the simplified media version I'm familiar with.
The investor has to like that deal, of course. Their idea and the theoretical open-market value might be a lot higher. Another reason is that a lot of investors (including the general public) tend to get excited about new things, "irrationally exuberance" included.
If you used the metric of GDP, the 2021 statistics show these cities to be 5 spots above Nashville's #29 US ranking, and 5 spots below--
#24 St Louis, MO metro : $187,569,544
#25 Portland, OR metro : $186,570,323
#26 Cincinnati, OH metro : $171,737,526
#27 Pittsburgh, PA metro : $168,021,049
#28 Orlando, FL metro : $167,279,974
#29 Nashville, TN metro : $163,031,737
#30 Indianapolis, IN metro : $162,062,985
#31 Sacramento, CA metro : $160,542,566
#32 Columbus, OH metro : $154,509,800
#33 Kansas City, MO metro : $154,328,892
#34 Cleveland, OH metro : $147,637,827
The source is this awesome list of 384 metros, from Visual Capitalist, here (using 2021 data):
Nashville shoots way above these cities this list is disrespectful to it and underrates what is currently going on in Nashville. All of these cities pale in comparison to what Nashville has to offer and its future trajectory. Nashville is most certainly a peer of Charlotte and Austin. I can even forsee Nashville starting to challenge cities like Tampa, Minneapolis, Boston, Atlanta, Philly, Phoenix in the coming decades if it already hasn't. They are certainly seeing the type of job and corporate relocations that most of these cities aren't seeing. The amount of venture capital investment in Nashville currently going on further shows this.
I realize this thread is about venture capital, but it reminds me of the thread about "It" cities. In that context, I think that Nashville shoots well above every one of these cities except for Orlando. None of them (again, except for Orlando) have the cachet that Nashville seems to be enjoying right now. If for no other reason, I think we'll see Nashville's GDP continue to grow, and it won't be long before it moves up into a new grouping of peer cities.
If you used the metric of GDP, the 2021 statistics show these cities to be 5 spots above Nashville's #29 US ranking, and 5 spots below--
#24 St Louis, MO metro : $187,569,544
#25 Portland, OR metro : $186,570,323
#26 Cincinnati, OH metro : $171,737,526
#27 Pittsburgh, PA metro : $168,021,049
#28 Orlando, FL metro : $167,279,974
#29 Nashville, TN metro : $163,031,737
#30 Indianapolis, IN metro : $162,062,985
#31 Sacramento, CA metro : $160,542,566
#32 Columbus, OH metro : $154,509,800
#33 Kansas City, MO metro : $154,328,892
#34 Cleveland, OH metro : $147,637,827
The source is this awesome list of 384 metros, from Visual Capitalist, here (using 2021 data):
Just because I think it’s perhaps Nashville’s closest peer per se, I’d add that the Raleigh-Durham combined MSA’s slots in between Cincinnati and Pittsburgh based on that data.
Would a company waiting to IPO even have a market cap? I think I missed something here.
Looks like you did, so I've shared the link for you below. 22 of 30 US-based venture funded companies with valuations above $10B are in the Bay Area, 2 are in the Boston area.
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