If you’re a startup founder with a dream, you may want to swap the Bay Area for the Sun Belt–because your funding can go twice as far in the South than it can in California.
This finding may sound obvious, but Howmuch.net visualized it in hard numbers sourced from financial technology company SmartAsset. The analysis started with a relatively simple premise: You’re a founder who needs to register and set up your business with professional lawyers and accountants. You need to secure 1,000 square feet of office space, pay utilities, and hire five people for a year. How much will all of that cost, depending on your location?
Meanwhile, the cheapest city will cost you about half of that: In Chattanooga, Tennesse, you’ll spend $232,000, thanks largely to low labor, which runs $44,000 below the study average. Not hip enough for you? Try Memphis or New Orleans then, each of which will set you back about $240,000. That leaves you a lot of cash left over for live music and étouffée. While founding a startup in a small city comes with its own dilemmas, like a smaller talent pool and tech community, many of these cities are becoming tech hubs in their own right.
