Beyond Silicon Valley: Idaho & Utah Now Offer the Best Odds for Startup Unicorns
New York,NY – For decades,California and New York have dominated the venture capital landscape,synonymous with startup success. But a new analysis reveals these established hubs may not offer the highest probability of a VC-backed company achieving “unicorn” status - a valuation of $1 billion or more.
According to a newly calculated “all-time odds ratio,” Idaho and Utah currently present the most favorable environments for unicorn creation. The ratio, which compares a state’s ancient likelihood of producing a unicorn to the national average (represented as 1.0), places Idaho at 2.0x and Utah at 1.9x.
This means a VC-backed startup in Idaho is historically twice as likely to become a unicorn compared to the national average, while in Utah, the likelihood is 1.9 times greater.
while California (1.3x) and New York (1.4x) still outperform the national average, the data suggests their sheer volume of VC-backed companies doesn’t necessarily translate to proportionally higher odds for individual startups. Idaho’s relatively smaller pool of VC-backed ventures contributes to its higher ratio – fewer total companies, but a comparatively small number that haven’t reached unicorn status.
States including Texas, Rhode Island, and the District of Columbia have historically mirrored the national average, with an odds ratio of 1.0x.
The analysis was supported by the Stanford University Graduate School of Business Venture Capital Initiative. This data offers a fresh perspective on the evolving geography of startup success, suggesting emerging ecosystems are increasingly competitive in the race to build billion-dollar companies.
