Dallas, and the entire DFW area (an acronym that stands for “Dallas-Fort Worth,” not “down for what,” for those wondering), holds plenty of signs of a healthy startup world: The area is home to over 40 colleges, which means plenty of talent to choose from. 25 of the world’s billionaires live in the area, from Mark Cuban to a Walmart heiress. In fact, you should go ahead and get out your startup city checklist, because the Dallas area hits all the marks fairly well: diverse workforce, growing economy, pro-business community, central location, and an affordable cost of living. However, the venture capital funds can be limited, and the area’s still getting used to startups, so you won’t be coddled. In short, Dallas hosts a startup ecosystem that’s more fresh than anything the massive hubs on the east or west coast offer. Since all those pros and cons deserve a closer look, here’s a list of CEOs and startup founders who spoke with Tech.Co on the variety of challenges and benefits to life in the Metroplex.
You’re Kinda Under the Radar
Here’s Will Rosellini, CEO of Nexeon Medsystems:
Dallas Is a Melting Pot, Offering Plenty of Perspectives
Any region that welcomes different perspectives will remain a healthy, intelligent community, so I’m happy to report on two founders who have opened a window into a few Dallas demographics worth mentioning. First up: Blake Burris is the CEO of Flux, a company figuring out how to craft an AI-based robot to help people grow food — even on Mars. Co-founder and CEO Paula Marie Jones runs Memories Alive, a web-based memory care app. She offers insight on Dallas’ older inhabitants:
Venture Capital Is Lacking
Kristina Libby, CEO of the solutions agency the Social Works Co, spoke on the VC situation: Therefore we’ve seen a great business opportunity in the growing need for personalized senior care and engagement, and the community’s unique culture has allowed us to build a company which is for-purpose, as well as for-profit.”
Dallas Has a Great Cooperative Nature
When Victor Montalvo went through the process of co-founding drone service company HiFly Photography, he learned firsthand what the startup community was like:
Communities to Watch: Gaming, Sports
Cole Egger, CEO and co-founder of Cosmunity, has been an entrepreneur in the Texas city for the last 13 years, creating a dozen companies from the ground up as well. My experience was not the cutthroat startup world that the average layperson talks about; Instead it was an extra resource I could rely on besides the Google searches that helped us build our startup to where it was before coming to Dallas. From my experiences here and based on the people I have met and the projects they are working on I don’t think it is too long before the Dallas startup community is recognized as established as opposed to up and coming.” Meanwhile, Greg Bobolo, CEO at Immerss, puts in a good word for the sports community:
Classic “Texas” Communities Are Still On the Top
This note is a little more sobering: No matter how great the community is, it still relies on the familiar industry trends: oil and real estate are still popular. From Cassidy Fischer, Founder of Circle Seven Five, a subscription service company for millennial women in Dallas:
The Local Talent Is Awesome
From Marshall Hudes, who’s a co-founder of Truss, a leasing platform that helps businesses find office spaces in Dallas. Pros: Being self-funded and starting Circle Seven Five as a young person was definitely easier in Dallas than in someplace like Silicon Valley or New York City because the cost of living and operating your business is relatively low. Texas is business friendly. The start-up community in Dallas is growing with companies like We-Work and Common Desk promoting co-working space and entrepreneurship, making it seem more ‘trendy’ than playing it safe at a ‘normal job.’ I’m excited to see what the start-up culture looks like in five years.”
It Lacks a History of Incubating Early-Stage Startups
Tim Houlne, CEO of Dallas-based startup Humach, lists a few of the positives I’ve already covered — resources, talent — but also reveals a challenge that any would-be Dallas entrepreneurs should definitely be aware of: Once I hired someone from New York to sell to local tech companies, and he simply could not get the meetings booked. The most successful sales people by far were the ones who truly understood the fiber of the city and those they were selling to. Too often, workers from other cities can’t quite grasp the culture and uniqueness that make Dallas Dallas, and that is why I will continue to hire locally as my startups grow.”
It’s Getting There
Houlne continues with a little good news: And he’s backed up by Neil Smiley, CEO and founder of Dallas-based Loopback Analytics, a care transitions management platform:
The Area Is Large Enough to Let You Scale Up
Here’s a tidbit of startup knowledge: A small, friendly ecosystem is great at first, but can easily become too constraining. Luckily, the DFW area won’t give you any such growing pains. At least, not according to Smiley, who had this to say (in addition to backing up that earlier statement on the limited VC interest):
It’s a Great U.S. Travel Hub
Following up on Smiley’s words on air travel comes similar advice from Charissa Thornton Fitch, the founder of a Dallas startup launching early this summer:
Small Businesses Have Untapped Potential
I know all entrepreneurial types love hearing about anything “disruptive,” so perk up your ears for this word of wisdom from Dr. Lucas Lu, CEO and founder of online mobile marketplace 5miles:
Mentors Are Friendly, Too
Reach out to a potential mentor in the Dallas area, and you likely won’t be disappointed. Here’s Jo Trizila, President and CEO of TrizCom PR and Pitch PR, on what the DFW region has to offer: One thing everyone appears to agree on: The region is currently on the upswing, and there’s no telling what the startup ecosystem will look like in another five years. Check out our Dallas tag for more articles detailing the technology trends and greater startup community life in the region.
Startup of the Year
Apply to be one of the Top 100 semifinalist startups of Tech.Co’s Startup of the Year Competition that heads to Innovate! and Celebrate in Silicon Valley for the chance to win $250K in prizes. Get noticed by investors, tech leaders and influencers. Apply here!
