When it comes to opportunity for startups, the folks at Inc. Magazine turned to Startup Genome, an innovation policy company that examines important factors to develop its Surge Cities index. Startup Genome looked at seven of the most important indicators, including seed funding and job creation, and created a top-50 list of places most friendly for startups. Chattanooga came in at 36 on the list, mostly due to its fiber optic network.
Inc.com described Chattanooga as the Gig City "where approachability meets opportunity" and went on to write:
In 2010, Chattanooga became the first U.S. city to offer inexpensive gigabit-speed internet to all of its residents. Since then, the Tennessean city's economy has flourished, entrepreneurial activity has spiked, and resources for startups have proliferated. These include the Company Lab, a nonprofit accelerator that hosts Chattanooga’s annual Startup Week, and the INCubator, a massive 127,000-square-foot complex currently housing 55 startups, including 3-D printed builder Branch Technology, which has $9.5 million in funding. Today, it ranks 25th in the country for net business creation. Entrepreneurs are also drawn to the area because of its big city culture and small town vibe, says Alexis Willis, director of small business and entrepreneurship at the Chattanooga Area Chamber of Commerce. “Hearing about Chattanooga's [high-speed] internet may have brought them here, but then they’re like, ‘I want to move my whole family here’ and they end up sticking around,” she says. --Cameron Albert-Deitch
According to the Executive Director of CO.LAB Marcus Shaw, the EPB Fiber Optic network turned a congenial city into one roaring for entrepreneurs. "The gig was the impetus for this next generation of entrepreneurship," Shaw said. "This modern era of entrepreneurship is less than 10 years old, and where we've come in 10 years is phenomenal."
CO.LAB works with startups, offering courses on the information and skills that help innovators breed success in new endeavors.
Startup Genome looked at these factors when considering what cities made the list:
- Job Creation
- Population Growth
- Net Business Creation
- Rate of Entrepreneurship
- Wage Growth
- High-Growth Company Density
- Early-Stage Fundraising Deals
Other 2020 Surge Cities include Austin, Texas; Salt Lake City Utah; and Durham, North Carolina. See the full list here.