It is beneficial to the global startup ecosystem to have thriving sectors outside those largest hubs, Rosenhoch said. The next new great idea can come from anywhere, and founders need places they can go to get the support and resources they need to grow those ideas.
To keep up this growth, the Buffalo-Niagara region needs to keep cultivating good companies that have the potential to raise a lot of money, said Jack McGowan, executive director of the Western New York Venture Association and the Buffalo Angels group.
For example, Viridi Parente, a Buffalo company that develops products based on its lithium ion battery technology, announced in January it had raised $95 million, McGowan said.
“This is not just a blip on the radar,” Rosenhoch said. “The growth has been consistent and exciting and it’s only going to continue.”
How does Buffalo stack up?
Compared to cities with similar populations, companies in Buffalo raised far less money.
Scottsdale, Ariz., which was No. 1 on the list, brought in more than $552 million, and Cincinnati, a fellow Rust Belt city, had $251.8 million in funding, according to the report. Waltham, Mass., a Boston suburb with a population of 62,000, brought in nearly $1.5 billion, led by a healthcare startup that raised $1 billion on its own.