Insights Animation: Why Integrated Cities Produce More Startups

When you’re launching a startup, being in the right city—a place where you can find investors, scientists, and other entrepreneurs—can make a big difference. Research by Yale SOM’s Olav Sorenson and Sampsa Samila of IESE Business School identified another important factor in entrepreneurial success: being in a racially integrated city.

Sorenson and Samila found that in cities that are more integrated, venture capital investments are more effective in producing innovation and economic growth. There are more startups and those startups are more successful.