Delaware Defies the 'Dexit' Drama: Corporate Influx Surges Despite High-Profile Exodus
In the high-stakes world of corporate domiciles, Delaware has long reigned supreme. But recently, a chorus of high-profile billionaires and companies declared its reign might be over, launching a campaign dubbed "Dexit" to encourage a corporate exodus. The latest data, however, tells a strikingly different story: not only is Delaware holding firm, but its appeal to new businesses has actually accelerated.
The movement gained momentum in early 2024 after a Delaware court voided Elon Musk's monumental Tesla pay package. Musk, who had incorporated both Tesla and SpaceX in the state, took to X with a blunt directive: "Companies should get the hell out of Delaware." His sentiment was echoed by venture capital firm Andreessen Horowitz and crypto-exchange Coinbase, which relocated their incorporations, citing legal unpredictability and urging others to follow.
Yet, according to the comprehensive Corporate Census—a database tracking entity formations across the U.S.—the feared mass departure failed to materialize. Instead, 2025 marked a period of "monumental growth" for the First State.
"The short answer is that 'Dexit' isn't happening," said Andrew Verstein, author of the Corporate Census and a professor at UCLA School of Law. "There is a clear increase in Delaware's relative popularity beginning in 2025, making it a singular leader in a period otherwise lacking corporate growth."
Verstein's research shows Delaware's share of new corporate formations jumped sharply at the start of 2025, with about 30% more Delaware corporations formed than in 2024. This growth occurred while national incorporation levels remained flat, indicating an "absolute increase" driven by new business choosing Delaware, not a broader national trend.
The precise catalyst for this surge remains unclear. Verstein notes it began before the 2025 announcement of SB 21, a law designed to strengthen managerial authority, and well after the 2024 passage of SB 313, which addressed some shareholder concerns. He also speculates external factors, like the 2024 presidential election outcome, may have played a role. "Perhaps Delaware corporations were expected to be especially useful under [the Trump] administration," he wrote.
Delaware officials remain confident. "The data speaks for itself—Delaware's corporate franchise remains strong thanks in large part to the unmatched expertise and efficiency of the Delaware Division of Corporations," a spokesperson for the Secretary of State's office stated.
Voices from the Business Community:
"This data is a reality check for the hype. Delaware's court system is the most experienced in the world on corporate matters. For every founder scared off by a headline, ten more see the value in that predictability," said Michael Chen, a corporate attorney in Wilmington with over 20 years of experience.
"It's frankly embarrassing. This isn't resilience; it's inertia. Delaware got a wake-up call about being out of touch with modern founder needs, and instead of real reform, they're relying on legacy appeal and regulatory capture," argued Sarah J. Miller, a startup founder who recently incorporated her tech firm in Nevada. Her tone was notably sharp.
"As an investor, my primary concern is minimizing unforeseen legal risk for portfolio companies. The recent legislative tweaks in Delaware, combined with its deep legal precedent, still make it the default safe choice for most serious ventures," noted David Park, a managing partner at a mid-west venture capital fund.
Ultimately, the narrative of Delaware's decline appears premature. While high-profile departures made waves, the foundational appeal of its specialized courts, established legal precedent, and administrative efficiency continues to attract a growing number of new entities, proving that for the corporate world, Delaware's pull remains formidable.