The Complete Guide to Silicon Hills' Startup Ecosystem
Dell, IBM, and Motorola establish major operations. UT Austin becomes research powerhouse.
SXSW Interactive launches. Twitter, Foursquare break out at SXSW. Local VCs emerge.
Indeed, HomeAway exits. Google, Facebook, Apple expand. "Silicon Hills" brand solidifies.
Tesla, Oracle move HQs. Elon Musk relocates. California exodus accelerates. VC funding triples.
0% state income tax vs 13.3% in California. Founders keep $133K more per $1M income.
Exit Bonus:
No capital gains tax on stock sales
UT Austin (#10 CS program) graduates 2,000+ engineers annually. 60% stay in Austin.
Cost Savings:
Engineers 20% cheaper than Bay Area
300 days of sunshine. Live music capital. Amazing food. 30-minute airport commute.
Culture:
"Keep Austin Weird" = innovation friendly
| Company | Employees | Type | Location |
|---|---|---|---|
| Tesla | 10,000+ | Gigafactory + HQ2 | Southeast Austin |
| Oracle | 2,500+ | HQ Campus | Lake Austin |
| Apple | 7,000+ | Campus | Northwest Austin |
| 2,000+ | Office | Downtown | |
| Meta | 1,500+ | Office | Domain |
| Amazon | 5,000+ | Tech Hub | Downtown |
| Indeed | 3,000+ | HQ | Domain |
| Dell | 13,000+ | HQ | Round Rock |
| IBM | 6,000+ | Office | Northwest |
| PayPal | 1,000+ | Tech Center | Downtown |
B2B SaaS, Consumer
Deep Tech, Space Tech, Defense
Privacy Tech, Security, Web3
Social Impact, B2B, Consumer
B2B Software, Marketplaces
Texas' largest angel group. $50K-$500K checks. Monthly pitch events.
Women-led companies focus. $25K-$250K checks. Quarterly meetings.
UT Austin affiliated. Deep tech focus. $25K-$100K + mentorship.
UT alumni network. All sectors. $100K-$1M rounds.
Focus: B2B SaaS, Marketplaces
Investment:
$120K for 6%
Benefits: Global network, mentorship, demo day
Focus: All industries
Investment:
$100K convertible note
Benefits: Coworking for life, Texas network
Focus: High-impact startups
Investment:
Up to $500K in prizes
Benefits: No equity taken, global network
Focus: Consumer products
Investment:
$0 (mentorship only)
Benefits: Whole Foods connection, retail focus
Focus: Enterprise, SaaS
Investment:
$100K for 5-8%
Benefits: Enterprise customer intros
Where the big tech companies are. Walking distance to everything. Most expensive but most connected.
Hipster central. Best food, bars, coffee. Gentrifying rapidly. Where the cool startups are.
Austin's "second downtown." Amazon, Meta, Indeed here. Shopping, dining, living all in one.
Iconic Austin. Great for meetings and entertaining. Expensive but impressive address.
Where successful founders live. Best schools. 15 min to downtown. Need a car.
Former airport turned mixed-use. Dell Children's Medical nearby. Family-friendly, walkable.
Every March, Austin hosts the world's premier tech, film, and music festival. 400,000+ attendees, 5,000+ speakers, infinite networking.
Hotels sell out. Airbnbs 5x normal price.
Best networking at unofficial parties and day events.
Have a booth on Rainey Street. Give away swag. Host a party.
Capital Factory, Austin Convention Center, East 6th Street.
Jasper.ai - $1.5B Valuation
AI content platform. Fastest to $100M ARR.
Bumble - $8B IPO
Dating app. Rare female-founded unicorn.
SailPoint - $6.9B Exit
Identity security. Acquired by Thoma Bravo.
Outdoor Voices - Unicorn
Athletic apparel. Austin's lifestyle brand.
The Zebra - $1B+ Valuation
Insurance marketplace. Profitable growth.
HomeAway - $3.9B to Expedia
Vacation rentals. Austin's first mega-exit.
RetailMeNot - $630M IPO
Coupon platform. Later acquired for $2B.
Bazaarvoice - $400M IPO
Review platform. Enterprise SaaS pioneer.
WP Engine - $250M PE
WordPress hosting. Silver Lake investment.
Indeed - Recruit Holdings
Job platform. Stayed in Austin post-acquisition.
Apply for their accelerator or just get a membership. It's Austin's startup HQ. Free coworking if accepted. Access to 150+ mentors and investors.
Pro Tip:
Attend their Wednesday "Office Hours" - free 15-min sessions with VCs.
Emphasize:
Downplay:
Even if you didn't go there, connect with UT's ecosystem:
Better for: B2B SaaS, marketplaces, enterprise software, consumer brands. The tax savings alone extend runway by 20-30%. Quality of life is superior. Cost per employee is 30% lower.
Not better for: Deep tech requiring specialized PhDs, companies needing $50M+ Series B rounds, or those targeting Fortune 100 enterprises (they're still mostly coastal).
Strong and growing. UT Austin graduates 2,000+ CS students annually. Big tech offices (Google, Meta, Apple) have trained thousands of engineers.
The reality: Senior engineers (10+ years) are harder to find and often require competing with FAANG salaries. Junior talent is plentiful and eager.
Salary ranges: Junior: $80-100K, Mid: $120-150K, Senior: $160-220K, Staff: $250K+ (all 20-30% below Bay Area).
Yes, it's brutal. June-September sees 100°F+ regularly. August is unbearable. Everything is air-conditioned, but outdoor activities are limited to early morning.
The upside: October-May is absolutely perfect weather. No winter depression. Swimming year-round. After 2 years, you adapt (sort of).
Critical for B2C, helpful for B2B. It's 10 days when every VC, journalist, and influencer is in town. Launches get massive attention.
Strategy: Book everything by November. Budget $10-20K for presence (booth, parties, swag). Have a launch or major announcement ready.
Yes, but options are limited. ~10 firms can lead $3M+ rounds. Most Austin startups raising Series A get coastal leads with local participation.
Best approach: Raise seed locally, build relationships with coastal VCs early, leverage Austin VCs for warm intros to their coastal network.
It's real and valuable. Austin embraces unconventional thinking, creative approaches, and work-life balance. Wearing a suit to meetings marks you as an outsider.
In practice: Meetings at coffee shops or bars. Live music at company events. Dogs in offices. Flexible hours. Emphasis on culture over credentials.
Warning: The "old Austin" vs "new Austin" tension is real. Locals are tired of California transplants driving up prices.
Connect with 150+ Austin VCs, find your perfect neighborhood, and tap into the best work-life balance in tech.
Last updated: September 2025 | Data sources: PitchBook, Crunchbase, Austin Chamber of Commerce