Dallas is a bustling hub for startup activity — and the numbers don't lie. A new ranking from real estate investment marketplace Roofstock places Dallas-Fort Worth at No. 5 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 DFW's startup formation rate at 9.82 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 some 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
As a matter of fact, the Dallas area's ratio of new business founders to total business founders stood at a healthy 20 percent as of December 2020, according to career website LinkedIn. Also in 2020 and 2019, Dallas-Fort Worth ranked third on a list published by residential real estate platform Clever of the most affordable U.S. metros for startups.
"The Texas State Data Center projects the metro to reach almost 8 million by 2025. That influx of residents, along with graduates from DFW’s 40+ colleges, could pave the way for a productive team at any company," Clever says.
Two other Texas metros appear on Roofstock's list — Austin at No. 3 (startup formation rate of 10.61 percent) and Houston at No. 10 (startup formation rate of 9.48 percent).
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
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
"In the past years, Houston has seen a massive burst in its startup ecosystem. … Houston is one of the best places in the United States for entrepreneurs to launch and grow a business," Houston-based app developer Bixlabs says.
The Las Vegas metro area holds the No. 1 spot on the Roofstock list, with a startup formation rate of 11.44 percent.
This story originally ran on our sister site, InnovationMap.