Forget Silicon Valley, head to cheaper waters

There's a new phenomenon in the world of startups. Plenty of states and local governments want IT business and these places are willing to offer grant money and tax breaks as a way to entice startups to settle in their jurisdiction.

Former venture-capital hot spots like Silicon Valley and Boston are seeing a decline in new businesses. Instead, cities not usually on the high-tech list, such as Kalamazoo, Mich., and Toledo, Ohio, are clued into the value of attracting new startups and giving them extra help, reports an article in the Wall Street Journal.

Firms also like the lower cost of doing business in cities that are away from the front line. And as they grow, they find it's not hard to attract talented IT personnel to their business, no matter where they are located.

Ron Kitchens, chief executive of Southwest Michigan First, a privately funded economic-development company tells the WSJ that "In the last 90 days, we've seen 50 or 60" startups that are willing to relocate in order to secure funding. He adds that even companies in major, tech-heavy cities are showing interest. The financial carrots are certainly out there for new companies.

For more on the changing tech landscape:
- check out this online.wsj.com article

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