California continues solidifying its reputation as a hub for innovation and entrepreneurship, with eight of its companies making Forbes’ list of the top 10 best startup employers in the U.S. for 2025. The media giant recently unveiled its annual ranking of *America’s Best Startup Employers*, highlighting 500 standout companies nationwide that excel at fostering employee engagement, satisfaction, and growth.
Forbes emphasized the critical role employees play in a startup’s success, stating, “Choosing the right talent can make or break a startup.” Employees are not only the backbone of these emerging businesses but also their largest expense. As such, the best startups prioritize keeping their workforce happy, recognizing that satisfied employees drive both personal fulfillment and business success.
### **Top U.S. Startup Employers**
Leading the pack as the No. 1 startup to work for in the U.S. is **Cribl**, a San Francisco-based software company. Cribl climbed five spots from Forbes’ 2024 rankings, showcasing its commitment to employee satisfaction and innovative workplace culture. Close behind in second place is Boston’s **CodaMetrix**, while **Hightouch**, also based in San Francisco, secured third place.
Of the top 10 U.S. startups on Forbes’ list, eight are headquartered in California, underscoring the state’s dominance in nurturing thriving startup ecosystems.
### **What Makes California Startups Stand Out?**
California’s startup scene thrives on a unique blend of technological innovation, entrepreneurial spirit, and lifestyle appeal. According to a study by print-on-demand company Printful, California ranks among the top states for launching online businesses due to its balance of “technology and lifestyle.”
The state’s robust support system for entrepreneurs is another key factor. Marketing outreach organization Team California highlights that California boasts 141 business startups for every 100,000 residents, fueled by billions of dollars in venture capital and a culture that champions new ventures.
One shining example of this ethos is **Lunar Energy**, a Mountain View-based company specializing in solar energy solutions. Ranked No. 4 on Forbes’ list, Lunar Energy prioritizes thoughtful hiring practices and effective communication. Ed Franklin, the company’s head of people, told Forbes, “A lot of companies look at statistics to fill positions quickly. But we take our time with the people we hire.” This deliberate approach has helped Lunar Energy achieve significant milestones while maintaining high employee satisfaction.
### **Top 10 Startup Employers in California**
Here are the top 10 California-based startups recognized by Forbes as the best places to work in 2025:
1. **Cribl** – San Francisco
2. **Hightouch** – San Francisco
3. **Lunar Energy** – Mountain View
4. **Mercury** – San Francisco
5. **Whatnot** – Marina del Rey
6. **Anthropic** – San Francisco
7. **Mesh** – San Jose
8. **Pacaso** – San Francisco
9. **Mill** – San Bruno
10. **OpenAI** – San Francisco
### **Top 10 U.S. Startup Employers**
Forbes’ broader national ranking includes a mix of California-based companies and standout startups from other regions:
1. **Cribl** – San Francisco
2. **CodaMetrix** – Boston
3. **Hightouch** – San Francisco
4. **Lunar Energy** – Mountain View
5. **Mercury** – San Francisco
6. **Whatnot** – Marina Del Rey
7. **Anthropic** – San Francisco
8. **Wiz** – New York
9. **Mesh** – San Jose
10. **Pacaso** – San Francisco
### **How Forbes Compiled the Rankings**
To create its list, Forbes partnered with market research firm Statista to evaluate 3,000 privately held companies across the U.S. Each startup had to meet specific criteria: more than 50 employees, founded between 2015 and 2022 and operating as an independent entity rather than a spinoff of a larger corporation.
The evaluation focused on three core areas:
1. **Company Reputation**: Analyzing social media sentiment, online reviews, and public perception.
2. **Employee Satisfaction**: Examining employee feedback, workplace culture, and retention rates.
3. **Growth**: Measuring job openings, website traffic growth, and overall business expansion.
The 500 companies with the highest scores across these categories made the final cut for Forbes’ *America’s Best Startup Employers 2025*.
With its unparalleled combination of innovation, investment, and cultural support, California remains a beacon for startups and employees alike. For those seeking dynamic workplaces that value creativity and collaboration, the Golden State’s top startups offer some of the best opportunities in the nation.