Silicon Valley is still the Holy Grail for tech business, but Austin is now emerging as a new destination of choice for tech startups as well as larger enterprise companies and for several reasons. Austin now hosts a healthy mix of larger companies and savvy entrepreneurs coming in droves from California, New York and other tech hotbeds. Private investors are often surprised at the number of seasoned executives operating here, but the truth is that Austin has grown into one of the nation’s go-to spots for startups and large players alike, and a market for high-growth companies to thrive.
One of the most unique draws for companies is the incentives structure propagated by the State of Texas. The State offers companies about $19 billion per year in incentives, the highest amount of any state in the union. The Emerging Technology Fund in particular reflects Texas’s commitment to growth within the tech sector. This fund awards grants that help product development, public-private partnerships and the recruitment of research talent. So far, more than $410 million in awards have been given, with an estimated 54,000 jobs created.
In addition to a favorable funding, regulatory and legal environment for businesses, Austin boasts housing costs, utility expenses and tax burdens that are lower than most of the rest of the country. Texans don’t have to pay corporate or personal income tax. It is 47th of the 50 states in terms of taxes paid per $1,000 of personal income, according to the Austin Chamber of Commerce.
Like Austin, Silicon Valley started organically. Back in the 1980s, the Valley struggled to eclipse Boston, which it managed to do because of its casual culture, freedom to experiment, and collaborative environment. People flocked from the Midwest and elsewhere to pursue their entrepreneurship and innovation dreams.
Now it seems to be Austin's turn to lead the world to new innovation and entrepreneurship. What are your thoughts?
