As economies globalize and technology becomes a central force of change, Nevada is adapting. The tourism-centered state was hit hard by COVID-19 and is still trying to recover.
But its post-pandemic commitment to nurturing a healthy tech ecosystem has proven to be a very smart economic move. Over the last decade, a concerted push toward inviting and incubating tech startups has been evident in Nevada’s economic strategies.
The state is rapidly emerging as a powerful force in innovation – even Silicon Valley is taking notice. Tesla built one of its Gigafactories just outside Reno, and Google announced plans to invest $400 million in data infrastructure.
Nevada has created an accessible tech hub known for its emphasis on collaboration, strategic location and low cost of living – making it a prime choice for startup development.
Nevada Hearts Entrepreneurs
The State’s leadership has a vision to mold the state into a technological powerhouse. It is bringing this to fruition by making major investments in crucial infrastructure, workforce development, as well as research and development.
To cement its future in tech, the governor created the Governor’s Office of Economic Development (GOED) in 2011. Tasked with transforming the state into a tech destination, the department prioritized tech hubs in Las Vegas and Reno, as well as expanding public-private partnerships (PPP).
From prototype development to scaling operations, Nevada offers resources specifically designed to attract and retain new founders.
State and Tax Incentives
Nevada is looking to entice entrepreneurs with savings, and it started by having no state income tax. Deregulation has been a standing priority, which includes the passage of the “Right to Start” legislation, making it easier for citizens to become certified investors.
These are some of the programs available.
SBA 7(a) Loan: The Small Business Association (SBA) 7(a) Loan Program offers loan guarantees to lenders to financially assist small businesses, including services like refinancing existing debts.
SSBCI: The State Small Business Credit Initiative, which complements the 7(a) Loan Program, helps businesses secure the capital while remaining committed to their local communities. It offers founders accessible financing options and loans up to $250,000.
NSDC: The mission of the Nevada State Development Corporation (NSDC) is to facilitate the growth of small businesses by providing lending solutions and advocacy services.
Modified Business Tax Credits: The Modified Business Tax (MBT) is levied on businesses based on their gross revenue, but it offers specific credits to reduce tax rates.
Funds and Accelerators
GOED has assured a rise in the number of initiatives aimed at empowering tech startups – offering capital and mentorship.
Knowledge Fund: The Knowledge Fund is GOED’s key economic development tool for advancing the budding innovation economy. Partnerships with the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs give funding opportunities to organizations like the Sierra Accelerator for Growth and Entrepreneurship (SAGE) program.
StartUpNV: StartUpNV, this is a statewide nonprofit startup accelerator and incubator, was established in 2016 to facilitate early-stage venture development. Since 2021, its partner funds and syndicates (AccelerateNV and AngelNV) have deployed funds exceeding $29.7 million.
FundNV: FundNV is a for-profit pre-seed venture capital fund for StartUpNV accelerator companies, providing exclusive access to investment opportunities. Investments from FundNV also receive a 1:1 investment match through the state’s SSBCI program.
Black Fire Innovation Fund: The Black Fire Innovation Fund, a partnership with UNLV, accelerates innovation in gaming, hospitality, and entertainment, bridging academic research and private-sector capital.
Battle Born Venture Fund: a state venture capital program, the Battle Born Venture Fund, was established to financially support startups that choose to stay in the state as they scale. Additionally, the Battle Born Growth Microloan Program (BBGMP) offers working capital loans for high-potential small businesses.
2-for-1
Nevada’s vision is to be recognized as a pioneering force in the tech sector. GOED has placed special priority on accelerating growth in the Las Vegas and Reno tech scenes – the latter of which was recognized by the Biden administration as one of the nation’s Designated Tech Hubs. Both have boundless potential for founders, but which one is right for you?
Reno
Reno is the little city that could, earning a reputation as an up-and-coming “Energy Tech Hub.” Its emergence as a leader in lithium battery lifecycle came through its partnership with University of Nevada, Reno (UNR).
UNR is leading innovation in the Nevada Lithium Batteries and Other EV Material Loop, or simply the Nevada Tech Hub.
State and local funds have heavily invested in industry infrastructure, creating a system that assists in every development step, turning Reno into an all-in-one battery development destination.
Vegas
Even Silicon Valley leaders are starting to take notice, earning it the 2023 title of best city for startups.
The sectors at the forefront of the the city’s economy are gaming, finance, and e-commerce, with standouts being sports tech and fintech. The city even hosts companies like DraftKings, Zappos, SightLine Payments, and Shift4.
Additionally, Innovate Vegas and its Innovation District were created as hubs to inspire innovation with smart infrastructure. This district was designed to cater to tech professionals – from public WiFi to office space.
The convergence of emerging technologies, from blockchain to batteries, demonstrates how the state is prioritizing its innovation hubs – embracing its new tech-centered identity.
About the Author: Tess Danielson is a journalist and writer focusing on the intersection of technology and society.
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