In formation

In the not too distant past, most new companies would need to invest in their own computer servers even if they were not themselves targeting the technology industry. With the advent of cloud computing, it became easier to start a new business and access a global network of computing power and related services. During the pandemic, driven in part by layoffs, there was a jump in new business formation as budding entrepreneurs made increasing use of this digital infrastructure. The arrival of artificial intelligence and software coding assistants has further lowered the technical bar for many startups. Notably, the US Census Bureau reported earlier this month that based on application data, projected new business formations jumped 17% year on year in June.

Source: US Census Bureau, July 2026