Investment Climate in Utah
Utah’s tech industry continues to be a strong driver for startup activity and employment growth in the state.
Utah has emerged as one of the top states in the nation for investment. Over the past several years, the state has consistently ranked among the best labor markets for strong employment growth and low unemployment. The robust labor market, relatively low cost of living, and access to outdoor recreation, has attracted economic migrants from around the country and has turned Utah into one of the fastest growing states. From 2016 to 2017, three of Utah’s counties, Wasatch, Tooele, and Morgan were ranked among the top ten fastest growing counties in the nation.
A major contributor to Utah’s impressive growth has been the expansion of its tech sector. According to the Computer Technology Industry Association, Utah had the fastest growing tech workforce in the nation in 2017.
Utah’s tech sector has also been a driving force in the enormous increase in venture capital investment into the state over the past ten years. When companies receive venture capital funding, they often use it to construct new buildings, purchase equipment, and expand their operational footprint. These capital investments then flow back into the Utah economy, giving the tech sector an outsized presence.
As the tech sector has expanded over the years, it has spurred growth in Utah-based venture capital firms. Typically only seen in the major financial hubs of the U.S., locally-based venture capital funds have been increasingly popping-up in Utah looking to capitalize on their unique perspective of the state’s economic environment and workforce. This relationship between Utah’s tech industry and burgeoning venture capitalists, will be of significant importance as Utah’s “Silicon Slopes” look to challenge other tech meccas like Silicon Valley in California.