Northern California’s Silicon Valley has long established itself as the biggest and most profitable tech sector in the United States, but it’s far from the only region that hosts incredible tech companies and products. Many large U.S. cities are expanding their profiles as tech centers, even in regions where you might not expect it.
Although the largest employers in Colorado Springs are military bases, hospitals, and school districts, the city has put itself on the map of substantial tech presences in the nation. According to new research from the real estate firm CBRE Group, there’s been a 25.5 percent increase of tech startups there between 2016 and 2017.
Tech Jobs Spur Economic Growth
According to the authors of the CBRE study, the rapid tech growth of Colorado Springs will put the city in a strong position as a driver of economic growth throughout the region. “In many cases, when a new business comes to Colorado, it triggers job growth,” Matt Gowler, a CBRE associate told The Colorado Springs Business Journal.
“It can aid in continued immigration bringing fresh talent to our market, and it can help diversify our economy, which sets us up for sustained stability in the years ahead.”
To support this notion further, NerdWallet published a report titled “Best Places for Tech Jobs,” and Colorado Springs was number 13 on the list. It’s one of three cities in the state of Colorado (along with Denver and Boulder) that made the list. Tech giants in the old Silicon Valley have begun to discuss the wisdom of opening corporate offices in this region.
Colorado Primed for Tech Opportunities
According to Sreekar Jasthi, an analyst for NerdWallet, Colorado is a great state for growth in the tech sector. “The salaries and size of the industry (in Colorado cities) all rank pretty comparably with other high-ranking metros, like Seattle and Washington, D.C., but affordability is much lower than in Seattle, D.C. and obviously in San Jose or San Francisco,” Jasthi said.
Gowler also talked about how Colorado Springs is primed for the digital market, thanks to its younger population and constantly growing high-tech sector. “Colorado is attractive to tech companies for many reasons, including our impressive population growth, Millennial in-migration, educated workforce, entrepreneurial business culture and renowned quality of life,” he said.
Tech Businesses Get Their Start in Colorado
According to the CBRE study, more than 40 tech companies expanded their business in Colorado last year, and at this point high-tech companies are using 16 million square feet in the Front Range area.
“Colorado’s profile within the tech industry seems to only be rising,” CBRE Research Analyst Katie Murtaugh said in the report. “From startups just beginning their business to Fortune 500 global companies, we are consistently seeing organizations interested in opening or expanding their presence in Colorado, citing our strong population growth, relatively low cost of living, sustained economic growth and unmatched entrepreneurial spirit.”
Among the list of high-profile tech companies and startups in Colorado Springs you can count the following:
- BombBomb: Centers on delivering high-performing marketing content solutions
- BurtIQ: Introduces new data and tech options for the health field
- PV Ventures: Venture capitalist firm that invests in tech startups
- Bold Technologies: Software for alarm monitoring and physical security
- PeakMed: Medical care on a membership basis, including no co-pays, no deductibles, same-day appointments, and 24/7 medical phone support
- X-IO: Data storage system for healthcare, government, education, retail, manufacturing, and finance
- Root9B: Cybersecurity company that targets vulnerabilities and defends against attacks
- Fusesport: Management platform for sporting events
- Formstack: Creates online forms for business needs
Each of these tech startups has been responsible for maintaining thousands of jobs and new opportunities in the Colorado Springs market. In fact, according to the NerdWallet study, there are 52.58 tech jobs for every 1,000 employees.
Major Tech Companies Move to Colorado
Many high-profile companies have moved or are planning to open new offices in the Rocky Mountains as well. In 2017 alone, 14 major companies opened new offices in Colorado Springs, including Xero and Vertafore.
Colorado Springs isn’t the only city that’s handling an influx of jobs in the Front Range. Denver, Fort Collins, and Boulder are also seeing strong areas of expansion in the tech sector.
Google, HomeAdvisor, and Ibotta all have high-performing operations in the state. They’ve found it more affordable to do business in this region, so economic development has boomed.
Many startups in Colorado are rising stars. They can be tracked leaping up the charts of high-profile tech companies in the US. Denver-based startup Gusto, for example, has nearly quadrupled in size over the last year, because it managed to add 70 new positions.
Colorado is certain to remain visible on the tech radar for decades. It’s admirable what the state has accomplished in the last few years, but it has the potential to spur tech growth across the entire country.
