Jacksonville, Florida, may not be the first city that comes to mind for startups, but its thriving ecosystem, diverse industries, and affordable living make it a rising contender on the entrepreneurial map. Backed by strategic investments and robust support programs, the city offers a promising future for startups to scale and succeed.
Jacksonville’s Startup Scene: An Overview
Though not as widely touted as some other startup hubs, Jacksonville, Florida, offers a vibrant ecosystem for entrepreneurs and startups to thrive.
According to StartupBlink, Jacksonville ranks 199th globally (out of 1,000+) and 56th nationally (out of 250) in the Global Startup Ecosystem Index. This places the city in the top 20% of startup hotspots on both scales.
The city’s startup scene is a significant contributor to the US economy — it contributed over $2.6 billion to the economy and created more than 15,000 jobs in the last decade. This includes critical industries such as fintech, aerospace, and logistics. Plus, tech employment is forecast to grow by another 22% by 2027.
There are a few reasons for this:
- Jacksonville is situated in northeast Florida along the Eastern Seaboard. This places it within reach of key markets like Atlanta, Miami, and Orlando.
- Jacksonville’s 871,000-strong workforce is fueled by around 3,000 annual military separations and a steady influx of college graduates from local institutions such as the University of North Florida. Additionally, a median age of 36.7 makes it one of Florida’s youngest demographics.
- Jacksonville’s cost of living is 5% lower than Florida's average and 7% lower than the national average. Housing costs in Jacksonville are also 10% cheaper than the state average.
- Established companies like Nymbus and Black Knight are perpetuating a fintech wave in the space, which also includes dynamic logistics and aerospace sectors.
All of this contributes to a predicted $1.8 billion in industry output from the city for the next 5 years.
Financing, Support, and Government Channels for Startups in Jacksonville
Jacksonville-based startups can take advantage of a wide variety of funding and support mechanisms. These range from private venture capital to government-backed grants and loans to mentorship programs and incubators.
At the heart is the Jacksonville City Council, which has allocated $1 million in the 2023-24 budget for small business development.
Local and Federal Financing Options |
Small Business Capital Access Programs |
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U.S. Small Business Administration (SBA) Loans |
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Industrial Revenue Bonds (IRBs): Issued by the City of Jacksonville's Office of Economic Development (OED), these loans assist companies with expansion or relocation in Jacksonville. |
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Support and Mentorship Programs |
Local Initiatives Support Corporation (LISC): A community development organization that administers Jacksonville’s financial programs.Florida Venture Forum: Offers networking opportunities, education, and access to venture capital for startups across the state. |
Jacksonville Startup Success Stories
Let's see how the robust foundations of Jacksonville’s ecosystem have culminated in the success of two startups to emerge from the city:
Black Knight, Inc.
Founded by Bill Foley, Black Knight (recently acquired by Intercontinental Exchange) was a leading fintech company providing mortgage software and analytics. Supported by local internship programs and the "Black Knight Cares" initiative, it collaborated with Jacksonville universities to develop local tech talent.
On top of having over 93% of top mortgage lenders nationwide using its services, Black Knight has also received awards like the Mortgage Technology Stratosphere Award. The company raised an impressive $441 million at its IPO on October 2, 2017.
Fanatics Inc.
Fanatics, founded by Michael Rubin, is a dominant player in the e-commerce sports merchandise industry with a 65% market share. The company has thrived in Jacksonville's business-friendly environment, creating 2,500 local jobs and raising over $5 billion across at least 11 funding rounds.
Benefitting from workforce development programs, Fanatics has also invested over $5 million in youth sports and education initiatives in the region. The company has achieved an annual revenue of $850 million annually.
Conclusion
Although Jacksonville’s startup scene is still healthy, the news is not good. The city has slipped 86 spots in StartupBlink’s rankings, continuing its downward momentum for a second year.
The city has been hit particularly hard by pressures on the global startup industry, such as high interest rates, the rise of AI, and regulatory red tape.
However, the fundamentals are still there for the city to hopefully make a comeback and catch up with the startup giants of the US, like San Fransisco, New York, and Los Angeles.