01-04-2025
American Cities Can Help Propel The U.S. Tech Industry Forward
Innovative public private partnerships in U.S. cities drive more talent into the tech ecosystem and ... More can enable the country to maintain its competitive edge in the global technology race.
The recent rapid success of Deepseek AI was a wake-up call for the U.S. tech industry about the accelerating technological competition between the U.S. and China. But with federal support for universities, research and scholarships increasingly on the chopping block, how can the United States compete in the race for talent against a country with a proven willingness to subsidize scientific research and key industries—and over four times as many people?
One answer is ensuring that every potential tech professional in America has the opportunity to succeed—which means closing a stubborn economic divide in our tech workforce. Aspiring tech entrepreneurs need workforce training, education, and access to venture capital. Here, American cities can play a pivotal role. In fact, innovative programs in numerous cities are already helping people overcome barriers and bring their talents to the tech sector.
In 2024, the percentage of U.S. startup funding allocated to companies with Black founders reached a multiyear low of 0.4%, despite overall funding increasing, according to Crunchbase. Female-only founded startups received less than three percent of venture capital funding in 2023. The U.S. is missing out on valuable innovations and technologies originating from these parts of our population. But cities like Austin, Tulsa, Miami, Atlanta and New York are figuring out how to change that – and their efforts can be a national blueprint for opening opportunity in the tech sector to more qualified Americans.
Miami Tech Works, launched in 2023, aims to develop a sustainable tech talent pipeline that includes underserved residents of Miami-Dade County. This consortium of businesses, educators, and community groups trains people in coordination with local universities and provides reskilling and upskilling education in areas like AI and software development. They also work with businesses to place their trainees in internships, apprenticeships, and other jobs. According to the organization, they've trained over 1,700 participants, many of whom are now in full-time employment or internships in the tech industry. Similarly, the novel Tech Equity Miami funding consortium– including funders like JP Morgan Chase and Miami Dade County - works to remove barriers to entry in the tech industry. The group says they've deployed $63M to train over 257,898 individuals, 68% of whom come from underrepresented communities.
Austin, Texas's Opportunity Austin similarly partnered with Texas State University to create an ambassador program with 50 employers in IT, advanced manufacturing/semiconductors, and other industries to make sure educational offerings provide the skills employers actually need – thereby strengthening the regional talent pipeline.
Female-only founded startups received less than three percent of venture capital funding in 2023
Along the same lines, 'Atlanta's secret sauce is connecting tech startups with the city's many Fortune 500 companies to create partnerships,' said Dr. Eloisa Klementich, president and CEO of Invest Atlanta via email last month. Atlanta has the third largest concentration of Fortune 500 businesses in the U.S. – and the city leverages them to become customers of their tech startups. 'The City also supports disadvantaged and underrepresented tech entrepreneurs through programs such as the Women's Entrepreneurship Initiative,' added Klementich. Olivia Rios, CEO of Cold Mountain Consulting – which provides solutions for legal marketing technology challenges – secured a $250,000 loan through the program, enabling her business to get off the ground and thrive. 'When I started my business, I quickly became aware of my knowledge gaps,' said Rios in an interview with Canvas Rebel in 2023. Atlanta's initiative 'opened so many doors for my small business to continue to scale.'
In the Big Apple, the nonprofit Tech:NYC has helped build a more inclusive tech ecosystem partly by focusing on workforce development. They recently launched a citywide initiative to connect employers with NYC youth underrepresented in tech - including open houses, a micro-internship program for public high school students, and professional skills workshops. Separately, New York City's Economic Development Corporation is addressing the lack of venture capital funding going to underrepresented groups. 'By strengthening talent pipelines and mobilizing public and private investment, we are setting a new standard to ensure that founders, investors, and innovators of all backgrounds can participate and thrive in the tech economy,' Andrew Kimball, NYCEDC's President and CEO, told me via email.
To expand the pool of trained New Yorkers going into the tech and VC ecosystem, NYCEDC is launching a dual-track 890-person internship program, with a consortium led by Supermomos and including the City University of New York and Kauffman Fellows (a group of diverse venture capitalists who participate in a two-year training program). 'We want to help the next generation of diverse young talent break into the space,' said Supermomo's Co-founder, Edwina Yeo. 'Venture capital has always been about seeing potential where others don't.'
View of Tulsa Skyline at dusk from Centennial Park, Oklahoma. (Photo by: Joe Sohm/Visions of ... More America/Universal Images Group via Getty Images)
Innovative programs aren't limited to the largest metropolises. Tulsa, Oklahoma effectively built its tech ecosystem from scratch through organizations like the Tulsa Innovation Labs, which fosters high-tech startups by providing resources and mentorship, and Atento Capital, which helped to fund tech ventures and workforce development in the city. The local government worked with organizations such as the George Kaiser Family Foundation to invest in tech education and infrastructure, including creating co-working spaces. Furthermore, the city launched initiatives like the Tulsa Remote program, attracting remote tech workers to live in the area to infuse new talent into the local economy. And events like Tulsa Tech Fest and the annual Tulsa Startup Series connect entrepreneurs with investors and industry leaders, solidifying Tulsa's reputation as an emerging tech hub.
These city-led initiatives are not without faults – they need to scale and currently reach only a small percentage of the population. However, the success of these programs reveals a powerful blueprint for maintaining the United States' competitive edge in the global technology race: public-private partnerships that break down barriers to entry in the tech sector. These cities are showing that meaningful change happens when local governments, educational institutions, corporations, and community organizations work in concert to create inclusive tech development ecosystems. Each city strategically uses its unique strengths to invest in workforce development, strengthen industry partnerships, and ensure access to capital for more segments of society. Other cities should follow their lead, ensuring that the nation's tech sector benefits from the full potential of its diverse talent pool.
