Why Austin is the Perfect Place for Entrepreneurs and Startups

With a thriving startup ecosystem and a vibrant community of like-minded individuals, Austin is quickly becoming one of the top destinations for startups in the United States. 

Are you an entrepreneur or startup looking for the perfect place to launch your business? Well, you should look no further than Austin, Texas. 

With a thriving startup ecosystem and a vibrant community of like-minded individuals, Austin is quickly becoming one of the top destinations for startups in the United States. 

Startups in Austin TX benefit from a supportive ecosystem that fosters growth, innovation, and creativity. With a vibrant community of entrepreneurs, investors, and mentors, Austin provides an ideal setting for startups to connect and collaborate.

From an online insurance comparison marketplace to an enterprise platform, the city's startup community spans a wide range of industries. This diversity makes it easier for startups to find the right resources and expertise they need to succeed.

We'll explore why Austin is such a great place for startups, highlighting the unique combination of factors that make it an ideal location to launch and grow a new business. From the strong and diverse economy to the supportive business community, we'll take a closer look at what sets Austin apart and why it's a city worth considering for your next startup venture.

Show me the numbers!


Startups in Austin TX were able to raise a total of $5 billion in funding during the year 2022. This represents a small decrease in funding compared to the previous year's all-time high. While the total amount of funding raised by Austin-based startups in 2022 was slightly lower than the previous year, it is still a very significant amount and points out that the startup scene in Austin is thriving.

Also, the city's startup ecosystem has achieved a significant milestone. The combined valuation of startups in Austin has reached a new record high of over $128 billion and it suggests that there is a strong and growing base of successful companies in the area.

“The Austin region is home to a vibrant tech ecosystem, with a large cohort of rising stars and more than 25 unicorns born across the region.” - Roland Peña, Senior VP for Global Technology and Innovation for the Austin Chamber.

This fact is a testament to the city's vibrant and supportive startup ecosystem. In recent years, Austin has emerged as a hotbed for innovation, with a growing number of startups in a variety of industries, including technology, healthcare, and energy. The city has also seen a significant influx of talent, including top-tier entrepreneurs, engineers, and other professionals, drawn to the city's quality of life, strong business climate, and supportive community.


Are you looking for VCs? Austin says hello!

There are several venture capital firms with a presence in Austin, just to name a few:

  • S3 Ventures: A Texas-based VC firm that invests in early-stage startups across a range of industries, with a focus on technology and healthcare.

  • Silverton Partners: An early-stage VC firm that invests in startups across a variety of industries, including software, consumer internet, and digital media.

  • LiveOak Venture Partners: A venture capital firm that invests in early-stage startups in Texas, with a particular focus on enterprise software, cloud infrastructure, and cybersecurity.

  • Next Coast Ventures: VC firm that invests in early-stage startups in a variety of industries, including consumer technology, software, and healthcare.

  • Capital Factory: An incubator and accelerator that provides funding, mentorship, and other resources to startups in Austin and beyond.


The presence of these firms provides entrepreneurs and startups with access to the capital and resources they need to succeed and helps to foster innovation and growth in the city's economy.

What about the advantages?

One of the biggest advantages of launching a startup in Austin is its affordable cost of living. Compared to other tech hubs like San Francisco and New York, Austin is a much more cost-effective place to start and grow a business. This is particularly important for early-stage startups that need to stretch their budgets further and can benefit from lower overhead costs.

The logistics industry is also thriving in Austin, with major companies like Amazon, FedEx, and UPS operating in the area. This presents significant opportunities for startups that operate in the logistics space. By tapping into the resources and expertise of these larger companies, startups in Austin can accelerate their growth and expand their reach.


We saw a few insights into why Austin is one of the places that startup founders and VCs should pay attention to. Undoubtedly, this incredible growth that the city had this last time was possible by the combination of community, talented people, and the growing number of angel investors, venture capitalists, and private equity firms who are actively looking to invest in the city’s technology startups.

Develative is part of the Argentina-Texas Chamber of Commerce which is actively working with the Austin Chamber of Commerce, this combination of efforts gives the opportunity to promote innovation and generates ethical, productive, and fruitful business relationships.

About the author

Lucas Ocon

Lucas is the Chief Executive Officer of Develative. He's in charge of the strategic direction and handling the growth at the company; also he serves as the performance coach of the on-site team, making sure the team has a career path tailored to each team member's expectations and goals. He enjoys spending time with his dogs and music venues.

Follow Lucas Ocon on LinkedIn

Share this post: