Why Arkansas is the Next Big Thing for Tech Startups
Launching a tech startup is challenging no matter where you are. It takes more than just a groundbreaking idea — success demands capital, mentorship, talent, and an environment that nurtures growth. New companies also drive the economy with small business accounting for nearly 63% of net new jobs since 1995 according to the Small Business Administration. The unfortunate reality is that 90% of startups fail nationally, with 21.5% not making it past their first year. Startups need an ecosystem of support to survive.
While traditional, or coastal tech hubs might seem like the go-to for aspiring entrepreneurs, those ecosystems come with their own barriers: relentless competition, astronomical living costs, and a fundraising landscape that’s increasingly crowded. But there’s a hidden gem on the startup map that many founders are turning to — Arkansas. In fact, technology leaders like Acxiom, FIS, Gainwell Technologies, First Orion, not to mention the corporate headquarters of technology-enabled giants like Walmart, Tyson Foods, and JB Hunt have made Arkansas their home for decades.
Arkansas offers something that’s becoming harder to find elsewhere: significant opportunity, a supportive business climate, and a lighter financial burden.
Support That Grows With You
At the forefront of this shift is ARise — Arkansas Innovators, Startups, and Entrepreneurs — a program that’s revolutionizing where tech startups are looking to build their companies. Backed by the Arkansas Economic Development Commission (AEDC) and spearheaded by Startup Junkie, ARise is quickly positioning Arkansas as the next hotbed for tech and tech-enabled entrepreneurship. What makes ARise different is its deeply personalized, ongoing support. It’s much more than a three-month accelerator or a one-off workshop; ARise support grows and evolves with startups. Whether they’re perfecting a product, navigating the go-to-market labyrinth, raising capital, or preparing to scale, ARise offers tailored no-cost coaching and consulting to meet tech companies where they are.
The program’s strength lies in its community of mentors and subject matter experts — seasoned professionals who’ve been in the trenches, building companies from the ground up. ARise’s mentors span industries from biotech to AI, cybersecurity and more, with not just a breadth of knowledge, but depth in a variety of disciplines and verticals.
Capital That Stretches Further
Arkansas attracted nearly $200 million in venture capital in 2022 alone, a testament to the growing confidence investors have in Arkansas’ tech scene. But the benefits of being in Arkansas go beyond access to funding — they extend to how far that funding can go. Lower operating expenses means a startup’s runway is longer, allowing them to invest in the areas that matter most, like product development or team expansion. In cities like San Francisco, where the cost of office space can exceed $80 per square foot annually, Arkansas offers a dramatically different landscape. In Fayetteville, for example, office rent averages just $20 per square foot, making it easier for startups to focus on growth rather than just surviving the next rent bill.
The state is also investing in startup capital through programs designed to provide non-dilutive capital to early-stage startups, such as the AEDC’s Seed Capital Investment Program (SCIP) and Technology Development Program (TDP).
Talent at a Price You Can Afford
Attracting top talent is an ongoing challenge for any company, but Arkansas has an edge that many tech hubs can’t offer — a lower cost of living combined with a high quality of life. In places like Silicon Valley, employees may receive high salaries, but the cost of housing and living consumes much of their income. Arkansas, however, offers a more sustainable balance, where employees can afford to buy homes, enjoy outdoor adventures, and build a life that extends beyond the workplace. As remote work becomes more standard in tech, Arkansas’ affordability and lifestyle make it an increasingly attractive option for top-tier talent from across the country.
A Thriving Ecosystem on the Verge of a Breakthrough
Arkansas has invested considerable resources into the cultivation of a strong technology ecosystem across the entire state. In addition to the tech giants previously mentioned, newer Tech companies like Ozark Integrated Circuits, AcreTrader, Arkana Labs, and Cold Steppe are further proof that Arkansas is capable of nurturing high-growth, scalable companies.
The Bottom Line: Arkansas is Ready for Technology & Innovation
For over 50 years, tech founders serious about growing their companies have looked to Arkansas. For new founders looking to start and/or scale, Arkansas should also be on your radar. It’s a place where resources are abundant, collaboration is king, and innovation is at the heart of everything.
Grace Rains
Executive Director – The Conductor