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Hot for spring? Iowa startups.

March 9, 2016

Iowa is proving to be fertile ground for new businesses. Just last month Jack Henry & Associates (JHA), an IT provider for financial institutions, announced it would be adding a new office and hiring 50 new skilled workers in Iowa. The new employees will be working on the Banno Platform, a product created by an Iowa startup and sold to JHA in 2014. Let's break down a few reasons why startups are successful in Iowa:

Affordability

Iowa businesses enjoy construction costs, electricity rates, payroll costs and industrial lease rates below the national average. Our housing costs are some of the lowest in the country and Iowa consistently places near the top in quality of life rankings.

Access to Capital

Iowa’s three public universities leverage more than $600 million in R&D funding annually and Iowa has a growing venture capital community. For example, River Glen Venture Partners in West Des Moines, an Iowa Economic Development Authority (IEDA) certified innovation fund, recently announced its intentions to invest $25 million in early-stage, Iowa-based companies, and Next Level Ventures in Des Moines has been investing millions in Iowa companies since 2014.

Mentorship and a Network of Peers

We have a supportive business community, university partners, accelerators and incubators across the state, and a close-knit network of entrepreneurs. Here’s what TJ Tollakson, founder and CEO of Rüster Sports had to say about the startup community in Iowa:

“We have high tech startups, we have manufacturing startups, we have a lot of bioscience and a lot of agriculture startups and all of these combine to make a really, really vibrant community.”

Want more information on starting a business in Iowa? Visit IEDA’s entrepreneurial assistance page for more information on resources for startups in Iowa.

 

 

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Iowa Economic Development Authority
200 East Grand Avenue
Des Moines, Iowa 50309
Phone: 1.515.348.6200
email: Email Us

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