Seattle, the home city of corporate giants including Microsoft, Starbucks, Expedia, and Amazon, has seen a dramatic decline in a new ranking of the best US cities for attracting foreign businesses and investment. According to the fifth annual list compiled by the British newspaper Financial Times and the stock market index Nikkei, Seattle now ranks 13th among 95 US cities — a significant drop of 11 places from its second-place position last year.
Ranking Methodology and Scores
The Financial Times ranking evaluates cities across more than three dozen metrics deemed important to foreign investors. These include energy resilience, trade war resilience, workforce and talent, openness, business environment, foreign business needs, quality of life, and investment trends. Seattle achieved an average score of 62 out of 100. In contrast, the top-ranked city, Boston, jumped 10 spots to claim the number one position with a score of 73.
Impact of Washington's 'Millionaire's Tax'
Earlier this year, Washington state passed a 'Millionaire's tax' applicable to individuals with annual incomes exceeding $1 million. This policy has been cited as a potential factor in Seattle's declining attractiveness to foreign investors. Several Seattle residents expressed shock and dismay on LinkedIn regarding the report. Many in the tech community have voiced concerns about Seattle's 'perceived' anti-business image.
Kirby Winfield, founder of Seattle venture capital firm Ascend, shared the ranking graphics on LinkedIn, noting Seattle's slide. "As a Seattle native it kills me to see reports like this," he wrote. Startup founder Curtis Crimmins lamented in a LinkedIn post, "Seattle's innovation changed the world. From the devices we use daily, to how we shop, and communicate. The kneecapping of this culture has been swift and cruel. I'm obsessed with how we get it back, and I'll do anything to help us get there."
Entrepreneur Exodus from Seattle
Some comments highlighted a trend of prominent entrepreneurs leaving Seattle for other states. Notable departures include Amazon founder Jeff Bezos to Miami, former Starbucks CEO Howard Schultz also to Miami, and Expedia and Zillow co-founder Rich Barton to Las Vegas. Jeff Bezos, who left Seattle in November 2023, wrote in his farewell note that he wanted to be closer to his parents. "Seattle, you will always have a piece of my heart," Bezos stated. However, many have linked his move to Washington's economic policies.
Microsoft President Brad Smith has also been critical of the state's taxation policy. Smith warned that Washington risks taking its tech sector for granted and urged lawmakers to focus on economic development rather than just revenue extraction.
