Is Philadelphia a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Philadelphia has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Philadelphia gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Philadelphia

Funding is one of the most critical ingredients in building a successful startup – and Philadelphia offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Philadelphia's early-stage funding scene is active, supported by various players. Notable VC firms like First Round Capital and Dreamit Ventures are active in seed and early-stage investments, alongside BioAdvance which focuses on life sciences. Angel networks such as Robin Hood Ventures and Broad Street Angels also provide crucial capital and mentorship. Government initiatives like the StartupPHL Seed Fund, a partnership with PIDC and Ben Franklin Technology Partners, aim to bridge early-stage funding gaps. The city also offers grants like the Philadelphia Small Business Catalyst Fund and SBIR/STTR matching grants. Despite positive activity, including increased early-stage deals in recent years, challenges remain. Some reports indicate a historical seed-stage funding gap compared to other hubs, and founders can face pressure to relocate for later-stage investment. While overall investment saw a notable increase in 2024, the number of deals slightly declined, suggesting investors are focusing on fewer, larger bets.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Philadelphia has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Philadelphia has a vibrant startup and innovation ecosystem, recognized as a leading emerging hub. It boasts numerous coworking spaces catering to various needs, from national chains to local options. The city hosts a diverse range of tech and entrepreneurial events, including networking sessions, pitch nights, and larger conferences like Philly Tech Week and the Mid-Atlantic Capital Conference. Entrepreneurial activity is strong, with a growing number of startups, particularly in sectors like life sciences, AI, and technology. The ecosystem offers various support structures, including government initiatives, non-profits, and a multitude of accelerators and incubators. While many structured programs exist, there are also resources providing more personalized coaching and guidance for early-stage founders, emphasizing understanding individual needs and navigating obstacles. The ecosystem supports startups at different stages, with funding available from seed to later-stage investments, and a focus on fostering connections and collaboration.

For many entrepreneurs, the energy and resources available in Philadelphia can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Philadelphia, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Philadelphia is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Philadelphia offers a strong talent pool for startups, fueled by numerous universities like the University of Pennsylvania and Drexel University. The region excels in industry-specific skills, particularly in life sciences, biotech, cell and gene therapy, and technology sectors like AI and advanced manufacturing. Local talent supports entrepreneurial growth through a collaborative ecosystem, a high percentage of graduates staying in the area, and a network of incubators and accelerators. This environment fosters innovation and provides startups with access to skilled workers and experienced mentors.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Philadelphia can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Philadelphia boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Philadelphia offers a robust ecosystem for startups, featuring numerous incubators and accelerators like Ben Franklin Technology Partners, University City Science Center, and Comcast NBCUniversal LIFT Labs. These provide mentorship, resources, and networking opportunities. Co-working spaces also foster collaboration. Funding is available through various sources, including venture capital firms and initiatives like the StartupPHL Seed Fund. In 2024, Philadelphia startups raised $3.3 billion in venture capital. Government initiatives play a key role. The City of Philadelphia offers programs like the Small Business Catalyst Fund and tax credits such as the Keystone Innovation Zone tax credit and the Sustainable Jump Start program, which provides a 0% tax rate for the first three years for qualifying businesses. These resources collectively help startups access capital, expertise, and a supportive community to thrive.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Philadelphia. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Philadelphia Be Considered the Best Place to Launch a Startup?

There’s no doubt that Philadelphia provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Philadelphia presents entrepreneurs with several challenges. Competition exists across various sectors, though the city's ecosystem is growing and has seen significant early-stage funding. While Philadelphia's cost of living is lower than major hubs like New York or Boston, it is still above the national average, which can impact startup costs and talent attraction, particularly for more mature companies. Regulatory hurdles are a notable barrier, with reports indicating a complex and time-consuming process to start a business, involving multiple steps, forms, fees, and agencies. The city is working on initiatives to streamline these regulations.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Philadelphia or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Philadelphia offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash