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6 Reasons to Startup in Gainesville

6 Reasons to Startup in Gainesville

It might be surprising to know that Gainesville has flourishing technology and biotechnology industries, considering the city’s relatively small size and rural location in the heart of Florida. Dig a little deeper into the local tech scene, however, and Gainesville’s little-known secret becomes hard to overlook.

More than 160 startups have sprung up in Gainesville, according to the Alachua County Startup Database. Of these, Admiral, Arranta Bio, Rapid Genomics and Feathr were honored as GrowFL’s Companies to Watch in 2020. That same year, three Gainesville-based startups –– Shadow Health, ITPro.TV and Altavian –– were all acquired, elevating Gainesville products to national and international recognition. The rapidly growing, thriving community is primed for expansion. The Gainesville Innovation District is now home to more than 80 businesses, a food truck park and a revitalized city park with a lit jogging path. The GID added more beautiful commercial spaces where startups can take advantage of the live, work and play community.

“In the past five years, the number of startups in our program has tripled, and we currently have a waiting list,” said Jennifer Harrell, Interim Director of UF Innovate –– The Hub, a business incubator operated by the University of Florida.

More and more new businesses are choosing to start, stay or return to the Greater Gainesville region, and here is why.

Abundant talent

Gainesville’s University of Florida is ranked in the top six public universities in the nation, and the Aspen Institute is the No. 1 ranked college in the country –– so it is no surprise that Gainesville has the dynamic intellectual capital that any burgeoning tech or startup company could need. UF churns out top-notch talent in engineering, biology, medical research, business, communications and other fields.

“Our graduates are equipped with the knowledge, skills, and abilities needed to thrive after graduation. During their time at the university, UF students have the opportunity to gain experience and develop proficiencies in the competencies that employers desire from new talent, which are also ideal for startup environments.”

Santa Fe College’s Perry Center of Emerging Technologies offers premiere opportunities for talent development.

“Students can earn a B.A.S. in Industrial Biotechnology, or an A.S. in Biotechnology Laboratory Technology programs and get a job just across the street at competitive biotech companies. It’s a win for business and talent” said Alejandra G. Maruniak, Ph.D., associate professor in the Biotechnology Laboratory Technician Program.

After only two years of training, the average starting salary for an A.S. graduate of this Santa Fe program is $45,860. Startups in the UF Hub had an average salary of $80,000 a year in 2020, significantly higher than the state average of $53,000.

World-class resources

Renowned biotech business incubator, UF Innovate: Sid Martin Biotech, is located in the City of Alachua, amid beautiful countryside and some of Florida’s best mountain-biking trails a mere 20 minutes from downtown Gainesville. The 40,000-square-foot biotechnology incubator offers wet laboratory space, $2 million worth of specialized scientific equipment, climate-controlled greenhouses and executive offices.

The incubator is a three-time winner of the prestigious Randall M. Waley Incubator of the Year award, an accolade no other facility in the world has achieved. Sid Martin Biotech’s counterpart, UF Innovate | The Hub, was InBia’s 2018 Global Mixed-Use Incubator of the Year. It offers a 106,000-square-foot incubation, office and light manufacturing space for 360 startup and university employees. The Hub also houses Starterspace, a curated community of talented founders, students, mentors, angel investors and venture capitalists.

“As the lasting impacts of the global pandemic reshape the startup ecosystem, the Hub is committed to providing resources and support, but doing so in a manner that elevates equitable opportunities for everyone,” said Dr. Wanda Eugene, head of the Collaboratory for Inclusive Entrepreneurship. “I’m proud to be a part of a team making real strides to bridge the gap of inclusion in entrepreneurship in our community and across the state.”

Hub serves as an anchor in the up-and-coming GID, nestled between downtown Gainesville and UF. Thanks to the work of several local developers, the area also offers prime real estate for coworking, expanding businesses and dozens of technology-oriented vendors.

“You can find almost any resource you need as a startup within walking distance of your office,” said Matthew Luedecke, director of Commercial Properties at Trimark Properties, one of the primary developers of the GID region. “We house attorneys, financial advisors, technology licensing offices and a tight-knit network of businesses willing to provide mentorship to fledgling companies.”

Luedecke said the long-term vision for the GID is to create a dynamic ecosystem of talent, resources and amenities that encourage the pioneering companies outgrowing The Hub incubator to stay in Gainesville and keep contributing to the city’s economic and social vitality.

“The district is an ideal place to start a company, and it’s our goal to provide growing companies with adaptable office space that will accommodate their needs as they increase their footprint in the market,” Luedecke said. “The location also helps companies recruit top-level employees by tapping into the talent pool at the University of Florida.”

The Santa Fe College Innovative Product Development Center is another valuable resource to product-based startup companies and entrepreneurs. The center services more than 60 client companies by providing weekly webinars, access to a virtual pitch portal and Just-in-Time Training, which provides entrepreneurs mentoring and coaching right when they need it. They also have access to more than 70 service partners for consultations and assistance. Gainesville loves to celebrate its entrepreneurs with exceptional funding opportunities. Every year, the Cade Prize, UF’s Big Idea Competition, the startGNV Onward and Upward Grant Award and startGNV Startup sprint competition offer substantial equity-free seed funding to early-stage companies.

An atmosphere of support

Gainesville offers a small-town support system unparalleled in many larger metropolitan areas. Locals attribute the innovation ecosystem’s humble and helpful spirit largely to the late Josh Greenberg, founder of the 35-million user music streaming platform, Grooveshark. Greenberg’s success landed him on the Forbes list for best entrepreneurs by age 21. Even with his national reputation, he is best known locally for his commitment to Gainesville and helping fellow founders succeed.

After his death in 2015, the City of Gainesville designated April 17 as Josh Greenberg Day to honor the young founder’s transformative contributions to the Gainesville tech scene. Locals proudly pay forward Greenber’s generous spirit of giving, an underrated selling point for starting and staying in Gainesville.

“Gainesville has all the right ingredients to be the most startup-friendly city in Florida,” said Will Richardson, founder of Admiral the Visitor Relationship Management Company and former front-end engineer at Grooveshark. “Not only do we have a rich entrepreneurial history, but we have a thriving community of founders, mentors, serial entrepreneurs, educators, students, scientists and organizers actively investing their time and money.”

The many business founders in Gainesville not only share Richardson’s sentiment, they also readily pay it forward. Victoria Liu, CEO and founder of food delivery app Byppo, remembers having five mentors in her early business development stages because so many people were willing to help.

“Now, my company has expanded to Miami and Texas,” she said. “But I want to stay in Gainesville because I’m a part of this ecosystem, and I want to give back and encourage entrepreneurs.”

Culture cultivates creativity

Gainesville’s rich culture that embraces diversity and the arts helps propel the city’s growth in innovation. The abundance of creative minds in Gainesville means that new entrepreneurial ideas are always blooming. Osubi Craig, director of UF’s Center for Arts, Migration and Entrepreneurship, said the connection between the city’s cultural and innovation spheres is not random at all. They are deeply reliant on one another.

“Creativity is at the heart of innovation,” Osubi said. “Artists’ communities historically have attracted entrepreneurs and innovators looking to connect, develop, code or dream the next big idea. The energy, diversity of thought, collaboration and ingenuity that are found at the intersection of art, entrepreneurship and innovation are driving a bright future for our growing community.”

In addition to the incredible museums, local art markets, menagerie of public art and the Downtown Concert Series, Gainesville’s approach to the arts has a unique flair. For example, Gainesville is home to FEST, one of the punk scene’s most beloved underground music festivals.

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“This is a place you can feel free to try something different,” said Atticus Steinmetz, CEO and founder of Luciferase. “‘It’s a special part of the Gainesville culture that draws in innovative people and lets them thrive.”

High quality of life, low cost of living

Florida’s tax climate is already incredibly friendly to businesses and workers. In addition, Gainesville’s average annual salary outweighs the costs of goods and services. The overall cost of living in the Gainesville metropolitan statistical area is 12% lower than the rest of Florida and 12.2% lower than the U.S. average. Because of this, Laundr On-Demand Co-founder Michael Behfar said the company was fortunate to start in Gainesville.

“Between the relatively low cost of living and the community’s support for startup companies, we have been able to accomplish so much with so little. I just don’t think we would’ve had that same experience where we grew up in Miami,” he said.

Laundr Co-founder Kyle Lampkin moved to Gainesville to attend the University of Florida. Instead of returning home, he recruited Behfar to come to Gainesville.

“Things are inexpensive in Gainesville, so cash goes a lot further,” Lampkin said. “You can get in your car and drive five minutes to any meeting, so a day goes further. The difference can make or break you.”

Gainesville offers a 19.1-minute commute average, much lower than state and national rates. The city’s North Central Florida location also gives it quick and easy access to cultural opportunities and amenities normally found in larger cities. Within two hours in almost any direction from Gainesville, there are pristine springs, world-class mountain biking, white sand beaches, access to international airports, cruise ports, theme parks and national forests.

A fun place to be

Thanks to the Gainesville’s talent, resources, collaborative nature, creative spirit and affordability, those who settle find few reasons to leave and many reasons to stay. A pair of UF students founded Feathr, a fast-growing marketing technology company with more than 100 employees, in 2012. A startup accelerator moved Feathr to Austin in 2014, but after the year-long program was complete, the company promptly came back home to Gainesville.

“The recruiting advantages of Gainesville were a huge draw for our return,” said Aidan Augustin, president and founder of Feathr. “Add in the affordable cost of living, and we were confident that we could scale a world-class company here that attracts top talent and offers employees an incredibly high quality of life.”

SharpSpring, a global provider of affordable sales and marketing automation, launched in 2014 and has quickly risen to over 230 employees. Founder and CEO Rick Carlson is a UF alum committed to fueling SharpSpring’s growth in Gainesville and deepening its roots in its hometown.

“SharpSpring is proud to be part of Gainesville’s emerging tech center, fueled by a deep talent pool from the university,” Carlson said.

SharpSpring is excited to bring back its bimonthly Buzz networking events at local bars and restaurants, where local tech professionals get to know each other in a laid-back environment. The innovation community is also looking forward to these and many similar events and continue to collaboratively grow and foster Gainesville’s unique innovation ecosystem.

 

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