In just two days, Powderkeg unveils the Cincinnati Tech Census report at Cincinnati Startup Week. With the help of Cintrifuse (and eight leaders representing the #StartupCincy community), we’ll dive into the report on the panel, “Unvalley: New Insights and the Trends Powering Cincinnati’s Startup Success.”
I don’t want to give too much away, but I do want to mention several trends that the Cincinnati tech community should be excited about, particularly looking at Cincinnati’s data relative to that of other heartland tech hubs. (Cincy is the second city in Powderkeg’s National Tech Census project; Indianapolis was first; and reports will publish soon for Boulder, Denver, Nashville, Memphis, Chattanooga and Knoxville).
3 Exciting Trends from the Cincinnati Tech Census
- Businesses and Talent: Who’s Pursuing Who?
For decades, those passionate about an entrepreneurial career in tech had few destinations to pick from. As those destinations concentrated resources and wealth, the barrier to entry became steeper and steeper. San Fransisco’s median home price of $1.61 million is now more than some companies raise for their seed rounds.
For reasons like these, we increasingly see talent from all levels leaving the coasts. Some move seeking cheaper costs of doing business. Some just miss home. Furthermore, we see early-career folks not moving to the coasts at all in favor of heartland cities. That’s influencing not just where startups start up, but where major companies choose to expand.
That’s good news for cities like Cincinnati, whose Tech Census data shows a robust talent presence. There’s a gap at the senior talent level, but that’s not surprising given that hubs like Cincy are still maturing.
“As far as I'm concerned, we've had zero issue with recruiting any style of talent,” says Ry Walker, CEO of Astronomer. “There’s great talent in Cincinnati.”
- Quality of Life Aligning With Quality of Work
The trend of talent migrating away from the coasts reflects the desire for quality of life to match the quality of work opportunity. Just look at the top three reasons respondents said they chose to live in Cincinnati:
- Affordable cost of living
- Social network and/or family
- "I grew up here."
People don’t want to leave where they feel most at home. This isn’t sentimental — it’s practical. Entrepreneurship is a hard road. It’s even harder when you’re hundreds of miles away from your support network, or when you have to live in an overpriced highrise but would prefer a quiet tree-lined street. (Blake Smith, CEO of Cladwell, relies on his family’s support so much, he took his wife kids with him when pitching on the West Coast for six weeks).
“We have really strong colleges and universities, but I think Cincinnati is also doing a great job of becoming an attractive city to people outside of Cincy,” says Fernanda Horner, marketing activator at Cincinnati USA Regional Chamber. “As we do this, we’re getting more and more talent coming to the area, and that’s a big help.”
The movement of talent into heartland cities shows that tech professionals want to live where they can do their best work. That’s one of many reasons Cincinnati made “The Top 10 Rising Cities For Startups,” a list made in collaboration between Rise of the Rest and Forbes.
- Culture Continues Becoming a Priority
Cincinnati’s startup founders recognize the reasons why professionals are moving away from the coasts, and they’re leveraging those motivations to create attractive workplaces. The top three reasons respondents chose their current employer:
- Company culture
- Passion for the product or service
- Leadership team
Another noteworthy stat: 75 percent of companies offer some kind of equity or ownership plan. People want companies that invest in them as much as they invest in their companies, and that goes far beyond compensation. It can’t be understated how much people value the chance to do meaningful work and realize their potential.
“Cincinnati has some of the hardest working people I've ever had the experience of knowing,” says Charlie Key, CEO and co-founder of Losant. “When you get down to it, there are people here that can create products and businesses that compete anywhere in the world.”
Be the First to Read the Full Cincinnati Tech Census Report
The Cincinnati Tech Census report officially releases later this week. To be among the first to see it, you can:
- Come to the panel, “Unvalley: New Insights and the Trends Powering Cincinnati’s Startup Success” this Wednesday from 4:30 p.m. to 5:30p.m.
- Watch the livestream of the panel discussion and census reveal.
- Download the report from TechCensus.org when it publishes this week.
About Matt Hunckler
Matt Hunckler is the CEO of Powderkeg and host of the Igniting Startups podcast. Powderkeg is a community as a service platform for entrepreneurs, investors, and other professionals based in tech hubs between the coasts. This network helps members connect and find the resources they need to scale their companies outside of Silicon Valley. Powderkeg’s members have collectively raised more than $575 million in funding. Learn more at Powderkeg.com.
