Photo courtesy of VISIT PHILADELPHIA.
While there’s ample room for increased investment, incentives and infrastructure support, leaders say Philadelphia already possesses many of the essential elements for success.
Danielle Cohn, CEO, Wave Ventures AdvisoryAs someone entrenched in startup ecosystems - as a founder, investor and advisor for over a decade - it was promising to see Philadelphia advance to #25 on Startup Genome’s 2024 Top Global Startup Ecosystems list. This ranking reflects the region’s funding and growth metrics, signaling a burgeoning startup scene.
To really gauge the landscape, I checked in with area startup leaders. The consensus? While there’s ample room for increased investment, incentives and infrastructure support, leaders say Philadelphia already possesses many of the essential elements for success, including a growing pool of global tech talent. Yet, much like Philadelphia’s tourism scene before 2000, our startup sector remains relatively under the radar.
To shift this perception and climb further on lists like Startup Genome’s, both institutions and individuals must create an accelerated flywheel. This involves a concerted effort to provide both initial and follow-on funding, become customers of local products and services, streamline business and government support, encourage corporate spinouts, and invest in amplifying the region’s startup growth narrative.
Growth Incentives
Gloria Bell, President of Philly Startup Leaders, asserts, “The ecosystem needs several things to propel it forward faster, including better policies and processes that make starting, maintaining, and growing a business more intuitive and founder-friendly.”
Austin, Miami, Memphis and even Helsinki, are a few cities from which we could take a page.
Wil Reynolds, Founder and Vice President of Innovation at Seer Interactive, highlights the potential for growth from our universities, “Philly gets so many students here for college, especially with Penn. I've always thought we could do more to incentivize people to start their businesses here.”
Global Talent is Already Here
Seer Interactive celebrated its 20th anniversary in 2022, and Reynolds lauds other local successes like Guru, which has been thriving for over a decade, “As a customer, I’m continually impressed by their product.”
Rick Nucci, Co-Founder and CEO of Guru, adds, “We may not be the ‘tech hub’ we’d like to be in terms of company HQs, but the people are already here. I continue to be blown away by the companies employing people in Philly - Spotify, Etsy, Carta, Slack and Shopify, to name just a few.”
Photo courtesy of VISIT PHILADELPHIA.Investors
While First Round Capital, Ben Franklin Technology Partners, PACT, and Comcast NBCUniversal LIFT Labs are well-known, Chris Cera, CEO of Arcweb Technologies, calls for increased angel investment, “We need more individuals to become active angel investors in our early-stage ecosystem.”
For those interested, check out Robin Hood Ventures and Broad Street Angels.
Tiffany Wilson, President and CEO of the University City Science Center, also notes, “Philadelphia needs to attract and deploy more capital into the region's promising academic research and technology startups.”
As an entrepreneur-in-residence at Yale Ventures and an early supporter of the Pennovation Center, I’ve witnessed firsthand how tech transfer works - turning academic research into products, and in some cases thriving businesses. This process attracts support from angel investors, VCs, government grants and other funding sources. With Drexel’s John Fry now leading Temple University, I’m optimistic to see increased cross-campus innovation collaboration, akin to what’s seen at Triangle Park in North Carolina.
Sector Diversity
Bell notes the growing diversity, “There is a blend of increased diversity, not just in people, but in the types of experiences and industry sectors.”
Wilson adds, “Philadelphia is widely recognized as a hub for cell and gene therapy innovation, and rightly so. However, what many might not realize is the equally exciting surge in med-tech and digital health startups… that can benefit the entire community.”
Strategic Marketing
Nucci suggests leveraging the region’s unique qualities to market itself better, similar to how it attracts conventions and tourists, “Let’s highlight our cultural authenticity, diverse food scene, affordability, walkability and proximity to major cities (New York, New Jersey and Washington, D.C.)”
Wilson concurs, “We need to amplify the successes and breadth of our innovation activities on a national scale.”
Having led marketing efforts for the Philadelphia Convention and Visitors Bureau when the destination was still underappreciated, I’ve seen how targeted campaigns can elevate a region’s profile. Philly Tech Week, Amplify Philly, Philly Startup Leaders, PIDC and area chambers do commendable work to grow the region’s startup brand with limited resources. A focused campaign would not only encourage founders and talent to stay and grow here, but also attract companies from outside the region seeking the best launch pad for U.S. expansion.
Learning from Others
A thriving startup ecosystem relies on intentional momentum: capital, streamlined policies, research, incubators, accelerators, enterprise and strategic promotion. By leveraging our authentic strengths - including our collaborative spirit - and drawing inspiration from other successful ecosystems (some examples below) - we can elevate Greater Philadelphia’s startup economy to shine brightly.
Danielle Cohn is CEO of Wave Ventures Advisory, and Founder of My Inspirement lifestyle community. Prior, she was the Co-Founder and head of Comcast NBCUniversal LIFT Labs.
