No. 49

Virginia Beach-NorfolkNewport News, VA-NC

With defense contracting, shipbuilding, and Langley Research Center all in the region, about 40 percent of the economy here is directly tied to the federal government. Maritime logistics and tourism are big as well, but business leaders are eager to diversify the economy. 757 Angels is a major player in the percolating startup ecosystem, investing in firms like Embody (cutting-edge treatment provider for tendon and ligament injuries) and Psionic (creator of lidar technology for autonomous vehicles). Reaktor Business Technology Innovation Center, which recently raised nearly $10 million, is busy nurturing aerospace startups. And colleges are doing their part: Old Dominion started an entrepreneurship program two years ago, and an incubator is coming soon to Norfolk State.