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The Ecosystem Builder's Edge

Why Mid-Size Cities Are Redefining Innovation Success

Published 4 months ago • 3 min read
"Cities have the capability of providing something for everybody, only because, and only when, they are created by everybody."
— Jane Jacobs

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Welcome to The Ecosystem Builder's Edge!

We deliver battle-tested strategies, hidden trends, and actionable insights for innovation ecosystem builders. Every month, get new strategies and relationship building ideas for strengthening your region's innovation capacity. We cut through the fluff, theories, and tech-bro bias to bring you what truly works.

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Dear Ecosystem Builders,

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Mid-sized cities are transforming the innovation landscape, proving that thriving ecosystems aren’t exclusive to major metros. This month, we explore how cost efficiency, accessible leaders, and loyal talent are making these cities hotspots for startups and partnerships. Let’s reimagine innovation together!
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A surprising truth about emerging ecosystems?

Mid-size cities are outpacing major metros in innovation and it's not by chance.
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While Silicon Valley and Boston dominate the headlines, cities like these are quietly leading the charge:

  • Chattanooga, TN: 124% startup growth YoY, thanks to strategic public-private partnerships and a citywide gigabit internet initiative.
  • Des Moines, IA: 3x venture capital growth, especially in fintech and ag tech, punching well above it's weight.
  • Raleigh-Durham, NC: A life sciences powerhouse with exit valuations growing 5x, fueled by top-tier research institutions.
  • Madison,WI: 92% talent retention rate, bolstered by community-driven culture and innovation-focused infrastructure.

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Why are they winning?

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Here are five reasons mid-size cities dominate:

  1. Cost Arbitrage: Major metros got greedy. With rent at $3K+/month, talent is fleeing. Mid-size cities offer a 60% lower cost of living with 85% of the amenities, stretching startup budgets, without sacrificing lifestyle.
  2. Stakeholder Accessibility: Good luck influencing policy in NYC. But in places like Tulsa, OK, founders sit down with the mayor over coffee. Mid-size cities foster collaborative, accessible relationships between policymakers, funders, and entrepreneurs, accelerating impact.
  3. Talent Loyalty: Big-city burnout is real, with average job tenure of just 1.2 years! Mid-size cities like Madison, see 3+ years on average thanks to affordability, strong community ties, and a healthier work-life integration.
  4. Resource Density: In major metros like NYC, 100,000 startups compete for the same resources. In places like Cincinnati, per capita resources are abundant, and support networks are more concentrated. Making resources for growth more attainable.
  5. Community Over Competition: Major metros breed cutthroat cultures; mid-size cities cultivate collaborative ecosystems where everyone wins together. This synergy fosters growth and innovation for all stakeholders involved.

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The kicker?

Remote work shattered geographic constraints. Talent follows opportunity, not zip codes.

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The next great innovation ecosystems aren't being built where you would expect.
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They will be in places we’ve overlooked. Until now.

Highlighted Events

The Ecosystem Building Leadership Network (EBLN) curates a list of upcoming events for ecosystem builders. Add an event you are attending here.
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Don’t miss the new round of C-Cube roundtables. I participated in the last cohort and it was great for peer-learning and having some accountability and support for key ecosystem conversations.
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The first 5 registrants to use code AMYVIP get 50% off!

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Funding Opportunities

Here are three impactful funding opportunities to explore especially if your work relates to resilience, energy or conservation:
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Timely Reads

Engage in insightful conversations on ecosystem building from around the web this week:

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Until next time, keep building the future 🌟!

P.S. A quick note of thanks to our affiliates Airtable and Amazon who help keep this newsletter free.

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