Why Austin is tops for startups

Why Austin is the top place for startups

Austin, Texas, has seen a large influx of tech workers and startup companies. It’s not just newly founded companies that are heading to Austin. Tech giant Elon Musk has stirred up quite the buzz regarding his announcement that he is relocating to Texas. In this article, we will dive deeper into why Austin is the top place for startups. It has been a popular destination for starting a business for a few years now. Additionally, we have seen major tech companies like Facebook, Google, and Oracle move their corporate headquarters to Austin.


Just in case you were wondering what startups are, let’s have a quick breakdown. A startup is a term used for companies or ventures that are mostly newly founded. They are usually focused on a single product or service and are intended to scale and grow quickly. The product or service they are developing or offering is frequently based on new technology and online services. Many of today’s largest tech companies began as startups. Sometimes the business model isn’t fully developed, or the company might be lacking the capital they need to go forward. Besides looking for funds and investors, startups also need affordable locations to house their offices. Now that that’s out of the way let’s look into why Austin is the top place for startups.

How Austin became a tech capital

Startups and tech companies in Austin didn’t multiply overnight. Austin’s rise to tech fame began more than ten years ago. During that time, most other American cities were still struggling to recover from the recent economic recession. On the other hand, Austin already had companies like Google, Apple, and Amazon, that were working on expanding their presence. And it’s not just startups that are setting up in the city; it seems like everyone is moving to Austin. The population continued to grow over the years, and Austin ranked first among 50 U.S. metro areas with the largest percentual net population gain. By the year 2040, Austin’s population is supposed to exceed 4 million people.

What’s so great about Austin?

We learned many things from the past year and the COVID-19 outbreak. One of them is that it’s possible for a bunch of people to work from home. Anyone who spends their time working in front of a computer could work from more or less any location. So, if anyone can work from anywhere – why are tech companies and startups moving to Texas? The post-corona atmosphere has many large companies turning to Austin as the new Silicon Valley. In many ways, Austin has already superseded this notion. After all, the city was named CompTIA’s top 2019 Tech Town.

Reasons why Austin is the top place for startups

  • Talent tends to congregate – we already mentioned that there is a well-established presence of big IT companies in Austin. Those companies continue to grow and attract more similar talent. What better place to establish a business based on new technologies than right next to the people developing them?
  • Low crime rate – Austin ranked as the fourth lowest in the nation among cities with a population larger than 500,000. This makes Austin a safe place for family life.
  • Tax structure – Texas has no personal income tax, and the state also has no corporate tax. This combination is very lucrative for growing businesses. Company founders can easily invest profits into their future ventures.
  • Innovate Austin – thelocal Chamber of Commerce is pushing for economic development and is very supportive of new businesses. The Innovate Austin program aims to provide job opportunities through leadership and strategy. They are primarily focused on innovation and technology-based companies making Austin the ideal place for startups.
  • Low cost of living – the cost of living in Austin is 15% below the national average. Being able to stretch the dollar is essential to everyone, especially those who are just starting their businesses. This is another driving factor that is pushing young tech-educated people to seek job opportunities in Austin.
  • Warm weather – summers in Austin are typically long and warm, while winters are short and mild. During winter, there is the occasional burst of cold weather called a Blue Norther. Snowfall is, for the most part, very rare.

Moving to Austin

Now that you have made up your mind about setting up your business in Austin, there are still a few more things to cover. One of the main issues is getting there. Relocation can be a bit complicated if you already have an established business. If that is the case, you will probably be traveling with some inventory. We recommend finding reputable long distance Texas movers who can provide easy transfer from all over the state. Business inventory for tech startups can include many fragile and expensive pieces. You will want those to be handled with the utmost care by professionals.

Another thing you will need to consider is finding a suitable office space for your business. Austin has numerous commercial properties that are available. With the help of an experienced agent, you will easily find offices or shared spaces. Cutting down on the costs is especially important for any growing business. Besides saving money, a good agent will help you find the right space for your business quickly. Saving time is vital for any startup that plans to hit the ground running.

Final thoughts

We have gone through the reasons why Austin is the top place for startups and how it became the United States tech Mecca. Most of those reasons are appealing to any business, whether it’s already established or just starting out. Who could say no to low living costs, a welcoming tax policy, and warm weather all year round? Businesses and individuals from many different fields are relocating to Austin. Perhaps it’s time you joined them.


Author bio: Perry Benson is a freelance blogger whose main interests are the tech and IT scene. Writing for Verified Movers, a reputable moving broker, lets Perry keep his ear to the ground and successfully inform people on current information in the moving industry

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