A recent study conducted by webacquisition.com found that California is the premier state in the U.S. for tech startups, scoring a 88 out of 100. At the other end of the spectrum, Mississippi is ranked as the least conducive state for tech startups, scoring just 35.

This conclusion was drawn based on various parameters, including the number of Bachelor’s in Science & Engineering (S&E) degrees among 18-24 year-olds, the percentage of S&E occupants in the workforce, the number of venture capital deals in technology and knowledge sectors, venture capital investments relative to GDP, average business applications over the past five years, the business survival rate, tax rates, average weekly wages, and the Quality of Life (QOL) index in each state.

“The top ten states for tech startups in the USA prioritize education and Science and Engineering (S&E) skills,” said Mushfiqur Sarker, co-founder and merger and acquisition advisor at webacquisition.com. They attract a lot of venture capital for tech and create a supportive startup environment. These states see many business applications and startups that survive, proving their tech ecosystems are thriving.”

“Some states are known for low taxes, while others provide high wages and good living conditions. These states are vibrant innovation hubs with various factors contributing to their success in the tech startup world,” Sarker added.

According to the report, the bottom 10 states for tech startups in the U.S. face several challenges that make them less attractive to entrepreneurs. They generally have lower education levels in Science and Engineering (S&E), fewer workers in the S&E field, limited venture capital, and a less friendly business environment. These issues hinder their ability to support tech startups.

webacquisition.com evaluated all 50 states in the U.S. using these distinct criteria, assigning a score out of 100 for each criterion. These individual scores were then combined and weighted to generate a final score out of 100. The data for this exhaustive study was sourced from the Tax Foundation, the Bureau of Labor Statistics, the National Center for Science and Engineering Statistics, and the United States Census Bureau. To view the complete study and methodologies, click here.