With low taxes, sunny weather, a vibrant cultural scene, and comparatively low cost of living, Austin is quickly becoming one of the leading startup ecosystems in the U.S. Austin ranked first in CompTIA’s 2020 Tech Town USA index, which praised Austin as a “favorable alternative” to the Bay Area and New York for startups. The city is also cemented as a tech hub, with Tesla among the 10 tech companies that relocated to the city in 2021 alone.  

Venture funding boomed in Austin in 2021, with local startups closing 387 deals valued at a record-setting $4.9 billion, according to PitchBook data. That represents 211% growth compared to 2020. Austin had five of the top 10 venture capital funding deals in Texas in that year, with notable funding rounds including ICON Technology’s $207 million Series B in August and Elligo Health Research’s $135 million Series E in September. LiveOak Venture Partners, which makes early-stage investments in technology and technology-driven services, raised its largest fund to date, $210 million, in late 2021.