Startups are a major driver for economic growth. But recessions tend to make people more averse to investing money in the inherently risky world of startups. According to the Dallas Business Journal, national startup activity has finally returned to pre-recession levels. Dallas ranks No. 11 for startup growth.

The Kauffman Index of Growth Entrepreneurship measures the growth of startups in 40 metro areas. For the first time since the recession, startup activity is up in all of the areas nationwide. 

On the metro level, Washington, D.C. ranked No. 1 for the second year in a row. Austin ranked No. 2. Other cities in the top five included Columbus, Nashville, and Atlanta.

Texas performed well on the ranking of states for startup activity, coming in at the number five spot. Ranking ahead of Texas were Virginia, Georgia, Maryland, and Massachusetts.

At the opposite end of the spectrum, Iowa, Wyoming, and Mississippi had the slowest startup growth rates of all states.

The Kauffman Index measures not only the number of startups, but also high-growth company density and the share of scale-ups. In general, startups are growing faster in their first five years than before.

Although startup activity is back to pre-recession levels, it still has not yet returned to the stronger levels of the 1980s and 90s.