Indianapolis has become the seat of tech in the midwest. Read this blog post to discover how Indianapolis startups grew and why the city is excellent for techies.
Way back, California, New York, Boston, and San Francisco were the front-liners of tech in the United States. In other words, these places focused on the tech industry and excelled. In 2018, they generated 77% of the funds invested into startups that needed venture capital. Before this time, nobody had heard of Indianapolis startups as the city centered on other industries – agriculture and manufacturing.
For some years, the narrative has changed as there are now Indianapolis tech jobs and startups. Unbelievably, the midwestern city now leads in the tech world. Find out in this blog post how this happened and how the city thrives in the tech scene. As a cherry on top, we shall discuss five reasons Indianapolis is a great place for tech workers.
How Did Indianapolis Become a Major Tech Hub?
To begin with, we must establish that startups didn’t spring up magically in Indianapolis. It took years. Starting in the 1970’s, the Japanese auto industry encroached on the United States market. This negatively affected Indianapolis – a significant player in the auto and manufacturing industries.
After the encroachment left Indianapolis’ economy paralyzed, there had to be a way out – business leaders’ decision. The transition of Indianapolis from the past to the present rides on the willingness of top business leaders who saw the potential for a big tech economy in the city.
These leaders strived to raise Indianapolis from its economic dust. According to Bob Compton, an Indianapolis venture capitalist, the business leaders all served in the Second World War. It was after the war they built their companies. Likewise, the business leaders believed that Indianapolis’ growth hinged on the rise of a new generation of entrepreneurs and growth stories. Even though these leaders knew the way forward, they needed help raising capital to bring their plans to life.
To further pursue the growth of startups in Indianapolis, John Fisher (the CEO of Ball Corporation) and Marion Dietrich (the sales head at Cummins Engine Company) spoke with Bob Orr, the governor of Indiana at the time. The duo pitched to the governor a venture capital firm that would invest only in rising tech companies in Indiana.
The Indiana state legislature approved the pitch and passed an act that anyone who invested in the venture capital firm would get a 20% tax slash. The tax slash made little difference as many people were uninterested in tech. Following a long wait, 53 investors showed up and invested $11 million in the proposed tech firm. Finally, in 1981, the tech firm was founded and called the Corporation for Innovation and Development (CID). The creation of CID marked the beginning of the springing of other tech firms in Indianapolis.
How Does the Tech Scene in Indianapolis Continue to Thrive?
After several years of creating the CID, there have been many more startups and Indianapolis tech jobs. The city has also witnessed the rise of tech companies like Salesforce, Genesys, etc.
The most important aspect of Indiana’s tech growth is how every entity – investors, the legislature, and tech companies – contributed to tech development in Indianapolis. While entrepreneurs continue investing in tech, tech companies set up offices in Indianapolis and hire talents.
To begin with, Colliers International invested a considerable sum in Salesforce, a cloud-based software company. In 2021, it planned to hire over 800 personnel. This shows that a city is on the verge of development when there is a big workforce.
In addition, business leaders in the city didn’t replicate the same steps other companies took. For instance, business leaders didn’t repeat what Silicon Valley was doing. Instead, they focused on what Silicon Valley wasn’t doing (and did it). Likewise, the business leaders studied the Midwest’s strengths and dwelled on them.
Indianapolis also welcomed Kronos and Appirio from other parts of the United States. These companies occupied a large expanse of workspaces in the city and hired talents from universities in Indiana and neighboring states.
For increased tech growth, TechPoint supported the educational system by setting up a program, Xtern. Xtern gathers 200+ college graduates from different places in the U.S. for internships/jobs in companies/startups in Indianapolis. During the summer of 2020, the company received applications from 1900 students. Upon selection, 80% of the students would work in tech companies as cybersecurity/IT personnel, software engineers, and data scientists. TechPoint didn’t slow down on tech as it used a software application to match students to the right jobs/companies.
Furthermore, the legislature invested $250 million into startups and early-stage companies in Indiana. The legislature’s aim for this action was to support the creation of new venture capital (VC) firms in Indiana and welcome more VC firms from other parts of the U.S.
5 Reasons Why Indianapolis is a Great Place to Live for Tech Workers
If you’ve been asking, “Is Indianapolis good for tech?” You’ll get your answers here. We shall discuss why Indianapolis is an excellent choice for you as a techie.
- Minimal Cost of Living
Making a six-figure salary might seem like a piece of cake in tech. The downside is that the salary almost seems like nothing when there is a high cost of living. Unlike other tech hubs – Boston, New York, and Chicago – Indianapolis is cheaper. Statistics show that the cost of living in Indianapolis is 28% more affordable than in Chicago, 42% cheaper than in New York, and 94% less affordable than in Boston.
- Green Pastures for Fresh Graduates
Fresh graduates do not have to wait forever to get jobs upon leaving college. Companies and startups in Indianapolis have their arms always open for college graduates to work with them. Graduates will find matching jobs and attractive salaries in Indianapolis.
- Available Tech Roles
It might take longer to find available jobs in other U.S. tech hubs. However, tech job openings exist in companies like Cummins and Raytheon in Indianapolis. Also, as a tech giant in Indianapolis, TechPoint helps applicants to speed up their application process.
- Easy Commuting
Commuting can be frustrating when there are transportation issues like heavy traffic. Indianapolis has found a way to beat this issue through its shorter-than-average commute times and BRT (Bus Rapid Transit) system. So, you do not have to worry about getting to work or important events late due to traffic issues.
- Access to Tech Leaders
Though Indianapolis is the 17th largest U.S. city, it’s still small enough for techies to connect and collaborate. Techies new to the tech world can always access experts for advice and guidance.
- Indianapolis was initially famous for manufacturing and agriculture.
- The city generated 77% of the funds invested into startups that needed venture capital in 2018.
- Business leaders, legislature, and tech companies contributed to tech growth in Indianapolis.
- For tech workers, Indianapolis is more affordable when compared to other tech-dominated cities like Boston and New York.
Startups and tech companies play a huge role in developing a place. With the help of insightful business leaders and a willing government, a place can go from having nearly nothing to do with tech to being one of the most populous tech hubs – just like Indianapolis. If you are keen on bringing tech to your locality but need more capital, our company can help you. We will give you the capital to bring your tech company dreams to life. Our process is short and simple. You only need to send us files to inform us about your company, and we’ll get you started. Ready? Schedule a call or chat now.