A new ranking of top U.S. ecosystems based on early stage funding data shows Seattle’s strength in software-related innovation. Seattle came in third in the software-as-a-service category among cities ranked by seed and Series A funding data from companies that use Carta’s equity management platform. This ranking is a reflection of Seattle’s software clout, which is being boosted by the AI boom. Seattle is home to Microsoft and Amazon, which power much of the cloud computing infrastructure supporting AI development. The region also boasts a wealth of AI talent, with Seattle being home to 23% of all AI engineers in the U.S.
GeekWire’s fundings list reveals that a number of AI-related companies in Seattle have raised significant capital over the past year. Some AI startups have also been acquired, indicating the growing interest in AI technology in the region. In terms of total funding, Seattle ranked fifth overall, capturing 3.9% of all capital raised. This is an improvement from previous years when Seattle ranked lower on the same list. The Bay Area leads in SaaS funding, capturing 43.6% of all funding, followed by New York, Seattle, Boston, and Los Angeles.
In addition to software-related innovation, Seattle also ranked in the top 10 for biotech, healthtech, and fintech funding over the past 12 months. However, Seattle did not make the top 10 for hardware or consumer funding. This diversity of funding across different sectors showcases the range of innovative companies in the Seattle ecosystem. The ranking provides a snapshot of the entrepreneurial landscape in Seattle and highlights the city’s position as a hub for technology and innovation.
It’s important to note that the ranking is based on startups that use Carta’s equity management platform, so it may not capture the entire startup ecosystem in Seattle. However, it serves as a useful indicator of the city’s strength in software innovation and its growing prominence in AI technology. Seattle’s strong showing in the SaaS category, as well as its overall ranking in total funding, reflects the city’s continued growth as a technology hub. With major tech players like Microsoft and Amazon driving innovation, alongside a talented pool of AI engineers, Seattle is poised to remain a key player in the tech industry.
Overall, Seattle’s performance in the ranking highlights its position as a major player in the U.S. startup ecosystem. The city’s strength in software innovation, particularly in the SaaS and AI sectors, is evident in the funding data. Seattle’s improving ranking in total funding, as well as its presence in various tech sectors, underscores its reputation as a hub for technology and innovation. As the tech industry continues to evolve, Seattle’s ecosystem is well-positioned to lead the way in driving innovation and fostering the growth of groundbreaking startups.
