Starting a Software Business? ...


Starting a Software Business? Silicon Valley of Pennsylvania

Starting a Software Business? Silicon Valley of Pennsylvania
The Silicon Review
04 January, 2022

The software industry is currently one of the fastest-growing and most promising industries, and Silicon Valley is often referred to as the cradle of the modern IT industry. Now, the IT industry is spread far and wide and has burgeoned in every corner of the world. The tech industry in 2020 alone has contributed almost 10% to the US economy. And the pandemic has shown that the world is increasingly dependent on the tech industry- whether it is the healthcare industry, entertainment and gaming industry, financial services, or even the retail industry.

Tech startups are extremely popular and receive the maximum backing from Venture Capitalists. So, if you are looking to start a software business in the USA, then one of the first things you need to decide upon is the location of your business.

Initially, every tech firm- big or small- made a beeline for Silicon Valley, but it has led to a bottle-neck situation, and startups' scalability has become difficult.

Things to consider before starting a software business

  1. Identify a gap in the market
  2. Create a business plan
  3. Obtain funding
  4. Hire the right talent

Now that we have understood that the capacity of Silicon Valley is at its maximum- so, where do we go next from here.

Pennsylvania is the up-and-coming state for the tech industry. But does it have the potential to replace Silicon Valley?

Pennsylvania- Why is starting a business favorable here?

So, why is Pennsylvania becoming the chosen location for budding tech entrepreneurs? We have a list of things that make it a favorite hotspot for many.

Tech support

One of the country's longest-running tech-focused economic development programs is Ben Franklin Technology Partners, and it is based in Pennsylvania and supports early-stage tech startups.

Talent for hire

Pennsylvania has some of the best universities in the country and attracts meritorious students from all over the world. Thus, if you are looking for young talents to join your business, Pennsylvania is one of the best states.

Some of the top Pennsylvania Universities are:

  1. University of Pennsylvania, Philadelphia
  2. Carnegie Mellon, Pittsburgh
  3. University of Pittsburgh, Pittsburgh
  4. Pennsylvania State University, University Park

Popular cities in Pennsylvania


This is one of the most developed cities in America and is home to popular universities; and has a variety of tech-related industries flourishing like robotics, cybersecurity, artificial intelligence, energy, life sciences, and health. The office lease in Pittsburgh is much less than the national average at $23.51 per square foot, and thus the overhead cost is less while you have access to all modern amenities.


This is one of the most popular destinations for tech giants and startups alike. It has a buzzing entrepreneurial ecosystem with fresh talents, amazing social life, affordable spaces, and good connectivity. 


It is one of the largest cities in Pennsylvania, and as a tech entrepreneur, you have easy access to resources. Philadelphia attracts businesspeople from everywhere with vibrant social life and several accelerator and incubator programs that help early-stage startups.


This city might be known for its Amish population and heritage, but there is more to offer than meets the eye. The Cultivate Lancaster Entrepreneurial Coalition is leading the charge, it is a partnership of 20 nonprofit, for-profit, government, and educational organizations dedicated to assisting small businesses and startups. Coworking spaces in Lancaster, such as The Candy Factory, Hingework, and Pubforge, make it easy to form collaborations.

Industries needing tech support


All industries are reliant on technology to flourish and grow. A software business doesn't necessarily have to be about IT- it can be an ally to other sectors like healthcare (telehealth), finance (FinTech), entertainment (OTT platform and gaming), and many more.

For instance, the entertainment industry is today completely aided by technology. The online gaming industry is booming, pa online casinos are legal and regulated, and many established and new brands are making a foray into this niche. There is a selection of games to choose from- slots, poker, roulette, etc. While the audience might enjoy the games, there is a lot of tech functionality that makes this possible.

As a software business specializing in gaming, Pennsylvania might be the best place to start a shop. Filled with new possibilities and challenges, a lot is yet to be explored in the online gaming and online casino industry.

Silicon Valley- the gold spot for tech businesses

There is nothing new that we can say about Silicon Valley, California, and it is the home to some of the biggest tech companies like Apple, Meta, Google, Wells Fargo, Visa, and many more.

The Carnegie Mellon Silicon Valley is one of the finest universities in the state and has courses that prepare the students to excel in the world of technology. Thus, there is always a steady stream of fresh graduates available to join.

The atmosphere is conducive to learning and growing with a vibrant tech scene. Silicon Valley is home to multiple Venture Capital companies who are always looking for new talents to back and nurture. So, there is a much greater chance of landing funding here than anywhere else.

With conferences and seminars being held on a regular basis, startups can mingle with other businesses. 

Silicon Valley vs. Pennsylvania

This is an inconclusive debate- since both places have some amazing merits in their favor. But Pennsylvania might edge past, especially if you are a startup because it provides affordable infrastructure, good support from local bodies, and scope for growth. 

Many established companies are also heading to Pennsylvania- Google, Uber, Meta have chosen Pittsburgh to start their new innovation wing. The idyllic cities are transforming rapidly, and of all the other states, Pennsylvania is racing ahead to win the crown for a tech cauldron after California's Silicon Valley.

Silicon Valley is already at its capacity. For a startup or small business to penetrate the market would be difficult, and you might set yourself up for failure.

The choice of starting a software business and the place where you do it is crucial as it can determine how long and how far you go!