There’s been plenty of splashy headlines in Orlando’s tech scene this year.
From fintech startup Stax becoming a unicorn to the launch of Central Florida’s bid to become the center of the metaverse, it’s been a jam-packed six months. Beyond the headlines, however, how is the region’s technology industry performing in key areas such as job growth, pay and fundraising?
Well, Orlando Inno looked into the numbers and produced this mid-year 2022 tech report card. Here’s what we found:
Jobs: B+
Orlando’s job growth in this sector outpaces the nation as a whole. While the U.S. Bureau of Labor Statistics does not define “technology” as an industry, its professional, scientific and technical services industry encompasses important fields such as computer systems, engineering and scientific research.
Metro Orlando’s employment in professional, scientific and technical services grew 8.8% from May 2021 to this May, per the latest data available from the BLS. That’s more than the 5.7% job growth that happened in that industry across the U.S.
Meanwhile, Orlando companies are posting tech jobs at a quicker rate than the nationwide tech sector. Between Jan. 1-April 30, metro Orlando firms posted 12,404 tech jobs, up 60% compared to the same timeframe in 2021, according to the latest data from the Computing Technology Industry Association. That’s a faster growth rate than the 40% bump in new tech postings that happened across the U.S.
Plus, tech and startup layoffs tracker Layoffs.fyi hasn’t recorded any major layoffs in Orlando, even as thousands of employees have been let go this year in Silicon Valley.
Wages: B
Common sources for metro-level tech wage data, such as the BLS and CBRE Group Inc., don’t update their data throughout the year, so they don’t provide a good snapshot of local tech pay past 2021.
However, a June report from Carta Inc. gives an up-to-date idea of how competitive Orlando’s startup sector wages are compared to top-paying market San Francisco. Jobs at local startups pay 80% of what they do in the Bay Area, the report found.
The good news is the report lumps Orlando in the same tier as other hot tech markets like Atlanta (84%); Durham/Chapel Hill, North Carolina (81%) and Nashville, Tennessee (80%). Also, Carta found Orlando’s wages are more competitive with San Francisco than Tampa (75%) and Jacksonville (61%).
However, Orlando is nowhere near the front of the pack. Among 49 U.S. metros, 30 were ranked ahead of Orlando.
Fundraising: A
It’s been a big year for venture capital investment in local companies. Actually, that’s an understatement; it’s a banner year.
Metro Orlando companies in the first half of 2022 raised $357.7 million, according to PitchBook and the National Venture Capital Association. If Orlando companies this year eclipse 2020’s total of $378.4 million raised, then 2022 will be the best year for startup investment since at least 2013, the oldest data available from PitchBook and the NVCA.
What’s more impressive is that the region enjoyed a historic Q2 for investment activity even as record inflation and concerns of a looming recession dogged the U.S economy. Across the nation, companies raised $62.3 billion in Q2, down 24% from Q1 and a 23% drop from Q2 2021.
Exits: C
PitchBook and NVCA tracked one notable tech acquisition in Orlando this year: the $135 million purchase of property tech firm SightPlan Inc. by Scottsdale, Arizona-based SmartRent Inc. (NYSE: SMRT). It’s a sizable deal, but it’s the only exit activity the two firms have tracked in Orlando so far this year.
Takeaway
The numbers point to a strong year so far for Orlando’s tech ecosystem, with job growth and investment activity trending ahead of the rest of the country. Of course, there’s room for improvement when it comes to wages, and a few more notable exits may raise the profile of the region.
The big question is if the industry can sustain or pick up its momentum as an economic recession threatens to slow the economy further in 2022. Future tech job loss in Florida may not be recession-driven, but part of an “overcorrection” after the explosion of tech jobs during the pandemic, University of Central Florida economist Sean Snaith previously told Orlando Business Journal.
The trajectory of the local tech industry is important to the broader economy. That’s because it can generate high-wage jobs. Also, more high-tech work can diversify and strengthen Central Florida’s hospitality-dominated economy, making it more resilient to economic downturns and pandemics that affect travel to the region.
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