INSIDE RURAL COLORADO'S TECH STARTUP SCENE
HOW SUCCESSFUL TECH STARTUPS ARE LAUNCHING IN RURAL COLORADO
Did you know that Colorado is one of the top states for the tech industry? Over 11,000 tech companies are headquartered here, from niche firms to global juggernauts like IBM and AT&T. Silicon Valley has taken notice of talent pool and quality of life, too, with 60 of the biggest tech companies establishing Colorado-based offices (as of 2020). Amazon, Apple, Google, and more have teams in the state.
While the Front Range is home to a large percentage of our tech companies and offices, there is a thriving tech scene emerging in the state’s rural communities.
Tech founders and employees are venturing out of the Denver/Boulder metropolis to discover they can find success and a fantastic lifestyle in small towns.
“Rural communities in Colorado have shown time and again that they have the complete package: determined entrepreneurs, scalable ideas, supportive mentors, and active investors.”
– Elizabeth Marsh, Executive Director of SCAPE (Durango)
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COLORADO'S GROWING REPUTATION FOR RURAL TECH INNOVATION
Like so many other aspects of life, the pandemic accelerated a trend of technology founders and workers moving to rural Colorado communities.
Verified, growth data for rural communities doesn’t exist, so that trend spotting is anecdotal. We do, however, have statewide statistics that substantiate the assertion.
First is the growth of the tech sector in the State. According to the 2022 Colorado Tech Industry Report (published February 2023), the tech sector:
- Accounts for 18% of the State’s gross state product,
- Accounts for 9% overall State employment,
- Added 9,680 jobs since 2019 (through end of 2022), which is a 19% increase and the 7th fastest growth rate for tech jobs in the country, and
- Is predicted to grow by 11% over the next five years, which would be the 6th fastest growth rate among all 50 states.
Second is the persistence and resilience of remote work in the State. At 37%, Colorado has the highest partial to full-time remote work rate in the U.S. Admittedly, the high rates of remote work in Denver and Boulder skew this statistic toward the Front Range. At 32%, Boulder, Colorado, has the country’s highest work-from-home rate (source: Axios).
Add to those statistics the increasing number of founders who’ve chosen to live and work in rural areas, and it’s fair to extrapolate that rural areas are indeed experiencing growth in tech sector opportunities.
Traditional, common economic drivers in rural Colorado communities are tourism, agriculture, and service and retail jobs. With little physical infrastructure needed beyond a fast internet connection, the tech sector is adding a diversity of opportunities to these economies.
Bottom line: Rural communities have long been home to technology founders and high-level staff who had the freedom to work remotely. The pandemic expanded this opportunity to most tech-related workers–at first by necessity, then with intention.
Many rural Colorado towns have capitalized on the statewide tech boom and are working to build a supportive ecosystem for tech companies and their teams.
“Getting involved in tech-based economic development helps to level the playing field for people in rural America. Technology is a field where so much innovation, creativity and wealth is being created, it’s only right that people everywhere–not just in major metro cities–have the opportunity to participate and be creators of the products, and the kind of future that they want to see and interact with.”
– Molly Pyle, Head of Entrepreneurship, Center on Rural Innovation
ADVANTAGES OF RURAL COLORADO FOR TECH STARTUPS
“The ingredients for innovation are an ambitious network, access to unique ideas, and space – to play, think, recharge, reflect, and execute. Rural Colorado has all of these in spades, making for an impressive breeding ground for business and innovation.”
– Jamie Finney, Partner at Greater Colorado Venture Fund
Rural Colorado can challenge any urban area for lifestyle and caliber of remote workers. Together with accelerators, mentors and investors, organizations like Startup Colorado are helping build the ecosystem for success. A few advantages to setting up shop in Rural Colorado:
Lifestyle
Lifestyle can’t be overstated when it comes to the advantages and opportunities of launching a tech startup in rural Colorado.
Smaller towns can be fantastic, active places to raise a family. They are often vibrant communities populated by people from diverse backgrounds who make an active choice to live where they do. And, of course, access to outdoor recreation is a massive advantage to balance the demands of working in the tech industry.
Remote Work
Despite a push to return to the office in some companies, remote work isn’t going anywhere. There is a wealth of talented individuals who are prioritizing lifestyle on equal par with career growth. Thanks to remote opportunities, those two objectives can now be fulfilled anywhere and at the same time. And that requires remote work opportunities.
The tech industry paved the way for remote work in other industries. But as the tides shift, companies seeking top quality talent need to continue to post remote-compatible job listings. It may require a shifting mindset for operations, but the results can be lower capital investment, higher productivity, and happier employees. It also opens the door to founders staying in the communities they love.
Cloud-based marketplace company Pax8 set up its first remote work hub at the Emergent Campus in Florence, Colo., and continues to hire largely for remote jobs. In doing so, it accesses a larger pool of qualified applicants and provides equal access to career growth for rural Coloradans and beyond.
Companies interested in hiring remotely can be proactive about helping their remote employees integrate into the local community.
Cloud-based marketplace company Pax8 set up its first remote work hub at the Emergent Campus in Florence, Colo., and continues to hire largely for remote jobs. In doing so, it accesses a larger pool of qualified applicants and provides equal access to career growth for rural Coloradans and beyond.
Companies interested in hiring remotely can be proactive about helping their remote employees integrate into the local community.
“Rural Colorado offers tech founders and remote workers a lower cost of living, easy access to the outdoors, and high speed internet connectivity. In addition, the remote economy allows for founders to recruit talent anywhere, while pulling from resources (funding, mentorship, etc) available in larger cities.”
– Leif Ullman, President of Ullman Technologies (Colorado Springs)
Networking
Colorado as a whole has been a tech magnet and incubator for well over a decade. More than 272,000 Colorado-based workers are employed by the tech sector (as of 2021), and that number is growing. This shows that there is already a vast network of highly skilled, Colorado-based candidates.
One such networking opportunity exists with West Slope Technologists, Founded by tech executive and coder, Justin Lewis, in 2017, the group exists to network, to share opportunities, and to “…support the sustainability and growth of the local economy by ensuring that organizations have access to diverse technical knowledge and skills.”
It should be acknowledged that the autonomy of remote work can feel socially isolating to some people. Companies can be proactive about helping their remote employees network professionally and integrate into the local community. That may include sharing lists of local business roundtables, niche groups (like West Slope Technologists), and professional organizations based in the community. It may also include providing benefits, like: paid volunteer days, gym memberships, gift cards to local restaurants, or other experience-based bonuses that support a healthy social network.
Co-Working Spaces
Some people prefer to conduct their remote work outside of their home office. Many rural Colorado communities have coworking spaces that provide reliable, high-speed internet, a professional setting, and social opportunities for those who miss the social aspects of working in an office. For the rare, very rural areas in Colorado with unreliable internet speeds, co-working spaces are usually more affordable than a Starlink subscription.
As part of this remote tech evolution, these co-working spaces are moving beyond the “rent-a-desk” approach and becoming networking hubs that can range from virtual offices and events spaces (JXN Station, Grand Junction) to comprehensive mentoring and incubators (CoVenture, Carbondale).
The Emergent Campus, located in an historic building in Florence, envisions a complete “live, work, play” environment. The founders are working toward a collaborative culture of growth for all businesses, with offerings of: consultation, incubation and shared fixed-cost services.
“Small businesses are big economic drivers across all of Colorado, regularly employing more than 50% of local workers, particularly in rural Colorado."
Jeff Kraft, Deputy Director and Director of Business Funding and Incentives at OEDIT
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Government Initiatives and Support Resources for Rural Colorado Tech Startups
The Colorado Office of Economic Development and International Trade (OEDIT) exists to foster dynamic economic development and sustainable job growth. Through OEDIT, Colorado is unique in how it supports rural entrepreneurship specifically.
“Small businesses are big economic drivers across all of Colorado, regularly employing more than 50% of local workers, particularly in rural Colorado,” said Jeff Kraft, Deputy Director and Director of Business Funding and Incentives at OEDIT. “The State created the Rural Opportunity Office to connect rural communities to state support and to build partnerships.
Among the many reasons rural Colorado is a desirable place to live and build a business, the top three are: access to outdoor recreation, engaged communities, and an educated workforce. In turn, OEDIT supports rural economic development with a host of tangible options.
Kraft explained, “Rural startups may qualify for State economic development programs tailored to rural communities. There are grants, tax incentive programs, small business support and a wide range of training programs geared to support these companies as they grow.”
THE ROLE OF SKILLED, REMOTE WORKERS
In a trend that shows no sign of slowing down, tech workers continue to flock to Colorado’s rural mountain communities.
While we don’t have data specific to remote workers, the Colorado State Demography Office identifies the following regions for having a high number of technology-related jobs:
- The Roaring Fork Valley (including adjacent counties: Pitkin, Eagle, Garfield and Gunnison) is emerging as a major hub for remote tech workers.
- The San Juan Mountain region, including La Plata, San Miguel, and Ouray counties, ranks in the top 10 regions of Colorado for tech jobs.
- Steamboat Springs, including Routt and Jackson counties, also ranks in the top 10.
In these regions and other emerging hubs, rural Colorado has an educated, highly skilled labor pool.
Even for tech leaders, remote work can pose a management challenge. So a company in Montrose stepped up to make managing a remote workforce more effective and efficient.
Proximity didn’t set out to be a tech company. It initially launched as a coworking space. When they couldn’t find a platform for managing coworking spaces, they developed their own. Now, the company provides an office management platform for three types of organizations: coworking spaces, commercial real estate, and companies managing remote workers and flexible workplaces.
Proximity remains grounded in rural Montrose, and is happy to report that over 65% of its clients are also based in rural areas.
PROMINENT TECH SECTORS AND SUCCESS STORIES
Rural Colorado has been the launching ground for many tech success stories.
Mercury Payment Systems was launched in Durango as a credit card processor in 2001. In 2014, Vantiv purchased the company for $1.65 billion and most recently reported $2.1 billion in income.
GitPrime (now PluralSight Flow) also was founded in Durango, in 2014, as a cloud-based productivity and analytics platform. In 2019, PluralSight acquired the company for $170 million.
AppOmni is a security solution for SaaS data. Founded in 2018, in Basalt, the company is now based in San Francisco. Its valuation has not been disclosed, though TechCrunch reports it has raised over $123 million.
Congratulations are in order to those rural Colorado tech startups that have demonstrated financial success and influence. As we celebrate these massive success stories, we also advocate for acquiring brands to continue operations in the original Colorado-based headquarters. Rural Colorado has the talent and capability to continue to deliver premium performance and operations.
Case in point: Don’t be surprised if more of the following rural-Colorado-based brands make a sizable impression on the world, too.
Cloud-Based Services and SaaS
- GitPrime (now PluralSight), Mercury, Proximity, and Munirevs (now GovOS), Knome (AI-powered app for homeowners, based in Frisco) and Verra AI (AI-powered platform for ecommerce, based in Durango)
Advanced Industries and Information Tech
- Orion Labs (applied robotics, based in Nunn), Paper Airplane (unmanned aerial systems data analytics, based in Durango), Pando Telecom (indoor wireless telecom, based in Crested Butte), and GeekPack (coding school, based in Durango)
Outdoor Tech
- TripOutside (online booking for outdoor experience, based in Durango), Rever (app for tracking motorcycle and powersport adventures, based in Eagle), Harvest Hosts (a booking site for unique RV stays, based in Vail), and Fast G8 (soon to be SmartMedia Technologies, data-based digital growth strategies, based in Carbondale)
Climate and Earth Sciences Tech
- Sustaio (data-driven app to track energy and water use, based in Telluride), ChronoCards (GIS management software, based in Grand Junction), and Bedrock Labs (climate-oriented data infrastructure and analytics, based in Marble)
Agri Tech
Barn Owl Precision Agriculture (drone and autonomous mini-tractors, based in La Junta) and Anywhere Cam (remote surveillance and security, based in Fort Morgan)
“Greater Colorado Venture Fund invests in any type of tech that has high growth potential. Rural Colorado is most obviously talented in outdoor products and software. We’ve also seen and supported space tech, hardware, consumer apps, ag-tech, telcomm and everything else in between. If it is early and ambitious, it’s our type of tech.”
– Jamie Finney, Partner at Greater Colorado Venture Fund
RURAL TECH HUBS IN COLORADO
We travel all over the state and communicate daily with founders, prospective founders, venture capitalists, incubators, accelerators, and other individuals that build rural Colorado’s viable startup ecosystem. Innovation is truly happening everywhere.
These are rural Colorado tech hubs where we’re seeing a lot of energy.
Florence/Cañon City
This area is home to the Emergent Campus, where Pax8 maintains a remote hub as does Barn Owl Precision Agriculture. It’s also a mini-hotbed for remote tech workers, thanks to a host of large governmental organizations and agencies in the vicinity.
Durango
It’s the outdoor lifestyle here that has attracted numerous tech remote workers and founders. Fort Lewis College produces plenty of new talent, too. Success stories like Mercury Payment Systems and GitPrime were founded here. Currently, there’s a new wave of tech brands beginning to thrive, including: MuniRevs/GovOs, TripOutside, GeekPack, and User Co-op.
Grand Junction
Colorado Biz Mag recently named Grand Junction the state’s next tech hub. Denverites and other city dwellers have been attracted by the open space, the low cost of living, mountain biking, and proximity to skiing and to the desert. COVID accelerated that migration. Colorado Mesa College has strong STEM programs for training, and companies like Cloudrise, Aspen Technology Group, and Kaart are already settled here.
Emergent Tech Communities in Rural Colorado
We’re watching for increased activity in Sterling (northeast corner of the State), where the Annex co-working space is gathering a community of tech-minded pros.
“Colorado has made incredible strides in becoming a top state for innovation and tech entrepreneurship."
Molly Pyle, Head of Entrepreneurship, Center on Rural Innovation
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RESOURCES AND FUNDING FOR TECH STARTUPS IN RURAL COLORADO
“Rural Coloradans can be—and already are in many cases—innovators, inventors, tech founders, and CEOs. Without access to the kinds of support and networks available to startups in bigger cities, their dreams may never make it beyond the rural community where they were born.
Startup Colorado and organizations like it are key to changing this and unleashing the full potential of Colorado’s rural change-makers, allowing them to stay in the small community they love while benefiting from the state and country’s powerful tech entrepreneurial landscape.”
– Molly Pyle, Head of Entrepreneurship, Center on Rural Innovation
To get started, here’s a select collection of resources, programs, and organizations that support rural tech startups in Colorado:
- SUCO Funding Database: Search for venture capital, loans, grants and other forms of funding in one location.
- Rural tech incubators and accelerators: SCAPE, XI Accelerator, CoVenture, and ICELab
- Coworking spaces (selected): JXN Station (Grand Junction), Fort Lewis College Center for Innovation (Durango), Emergent Campus (Florence), ALT Space (several locations along Western Slope), Tribune Suites (Fowler), ICELab (Gunnison)
- Tech-focused events, conferences, and meetups in rural areas: West Slope Startup Week!, Emergent Campus Events, CoVenture Events, TPI Aspen Forum, Telluride Venture Accelerator events (varied)
- Government grants, funding opportunities, and tax credits (rural tech specific or open call): Advanced Industry Grants, ComCast Rise, NASE Grants, Strategic Fund Incentive, Colorado Job Growth Incentive Tax Credit, Skill Advance Colorado Job Training Grant, Rural JumpStart Tax Credit
- Rural tech-specific mentorship programs and networks: Join the Startup Colorado Community to gain access to networking!
Tech-focused entrepreneurs, investors and job seekers are discovering increasingly more reasons to invest in Rural Colorado. Let Startup Colorado help you navigate the options and opportunities!
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FURTHER READING
A RURAL STARTUP COMMUNITY
Think you have to live in the big city to find a startup community? Think again. At Startup Colorado, we’re building a statewide startup ecosystem that breaks down geographic boundaries and ensures you’re not starting up alone. Expand your professional network through peer-to-peer networking, curated business resources, and events. Anyone with a vested interest in the success of Rural Colorado’s startup scene is welcome to join: founders, ecosystem builders, mentors, and funders.