Key startup industries in Delaware
There has been a steady rise in the use of technology and innovation to provide a wide variety of products and services that is changing the existing business and consumer landscape. The startup environment is rich with many opportunities including funding competitions, entrepreneurship venture support and commercialization programs, startup one-on-one consultations, Hen Hatch startup funding competitions, gap funding and training programs etc. Whether it is deep learning, and big data or innovations in environmental biotechnology products and health care services, you can incorporate in Delaware in any of the following key startup industries in Delaware.
Delaware is home to some of the largest financial sector companies like Capital One, Citibank Delaware, JPMorgan Chase, Fair Square Financial, WSFS Bank, PayPal, M&T Bank, and SoFi. The state is gradually moving towards becoming a nationwide leader in fintech and one of the reasons driving the fintech industry in Delaware is the Financial Management Act of 1981. There has been a steady rise in the fintech industry wherein there is a higher use of technology and innovation for providing financial products and services. Innovations and new ideas are being introduced within the financial services industry and they are actually changing the way a company deploys their financial services and products and how users interact with it. This has transformed the financial services landscape and created a long-term growth opportunity for startups keen to incorporate in Delaware. Some of the major highlights of the Delaware fintech industry are:
- Delaware has been one of the top locations for traditional banking but now even international fintech companies have started looking at this state as a favorable destination
- The fintech industry in Delaware ranks quite high on different measures of innovation in this industry. In the year between 2009 and 2018, almost 199 fintech patents were assigned to several Delaware based companies, entrepreneurs and individuals.
- Delaware is known to have the highest relative concentration of fintech industry services jobs as compared to any U.S. state and this is because of the high number of companies opting to incorporate in Delaware in this sector.
- Nearly one-fifth of Delaware’s GDP is driven by finance making it the largest contribution by any single sector.
- The investment by the U.S in 2018 was $52.5 billion in the fintech industry with the fintech industry in Delaware accounting for approximately $50 million in investments.
Delaware’s rapidly changing regulatory landscape offers Delaware tech startups a unique advantage for developing innovative financial solutions.
The Biotechnology (biotech) industry is considered as one of the top startup industries in Delaware and it comprises companies that derive their products through extraction of living organisms. The fact is that we have been employing biotechnology since the ancient times mainly in improving crops and breeding animals. Biotech as it is known comprises research, development, and production of different types of commercial products and a majority focuses on agricultural or medical applications. According to expert projections, the medical biotechnology industry is slated to reach revenue potential of $500 billion and one of the reasons for this is the proximity Delaware shares with New York, Philadelphia, and Washington D.C. This is one industry you can incorporate in Delaware as some of the biotech companies that have shown excellent growth include Incyte, Adesis, W. L. Gore & Associates, Prelude Therapeutics, and Agilent.
Biotech is now being seriously considered as the future of the state of Delaware and is one of the top catalysts in the existing vibrant science economy. Let us look at some of the salient highlights with respect to the Delaware biotech industry.
- The Delaware Biotechnology Institute is targeting an expansion of 70,000 square feet of space that will house offices, labs, Delaware tech startups, shared research instrumentation facilities, and collaborative space. This $160 million Biopharmaceutical Innovation Building will be the home to National Institute for Innovation in Manufacturing Biopharmaceuticals (NIIMBL).
- The University of Delaware’s Science, Technology and Advanced Research (STAR) Campus is working towards creating a biotech ecosystem that will support and feed the future startup industries in Delaware especially in the biotech industry. The STAR campus is replete with incubators and labs, health innovation design lab, CHS demonstration kitchen, and health care simulation lab.
- Bioscience-Related Patent Distributions are among the highest in the state of Delaware at 249 per 1 million populations. There were 193 bioscience-related patents assigned to Delaware based companies, entrepreneurs, and individuals between 2016 and 2019
The Edtech Industry is one of the fairly new startup industries in Delaware. Edtech stands for “education technology”, and entails the use of IT tools as well as educational practices to enhance and facilitate learning. The concept of Edtech had started as an experimental method of education initially but now it is being transformed completely by modern day entrepreneurs so much so that it is not anymore about reformatting training manuals and books but about using digital technology effectively for delivering a brand new form of educational or learning architecture. In the current scenario, Edtech is in its nascent stages and is being used for teaching and learning, as assistive technology. A State Educational Technology Plan has been created by the task force on Delaware state educational technology, Delaware Department of Education. There are five important components of this plan and they are learning, teaching, leadership, assessment, and infrastructure. The Edtech industry is slowly coming into prominence as more Delaware tech startups are registering in this industry but it still does have a long way to go.
The U.S. News & World Report revealed that Delaware is ranked 6th for quality of Healthcare and is ranked 15 in the list of the best states for Healthcare. The ranking is driven by the healthcare policy and the rise of a new age of digital healthcare research. It is one of the first states to launch the first standardized, operational, interoperable, real-time statewide health information exchange in the country in 2007 opening the door for startup industries in Delaware healthcare. The primary objective of this health exchange is to connect hospitals, physicians, and reference laboratories across the state. You can incorporate in Delaware in the healthcare industry as it is considered a keystone growth industry.
Delaware healthcare services along with educational services contributed $5.53 billion to the Gross Domestic Product (GDP) of Delaware in 2019. Some of the top healthcare companies in the state include Beebe Healthcare, Psychotherapeutic Services, Prelude Therapeutics, Intervet, Inc., and Nanticoke Health Services among others. The Delaware Department of Health and Social Services (DHSS) is trying to implement a State Health Care Innovation plan relying on state specific Innovation Models to bring about a change in the current healthcare system and to create a platform that will enable startup industries in Delaware to grow within this system while adding value to the system.
Start a tech startup in the Delaware pro-business environment!