Is Sacramento 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.

Sacramento 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 Sacramento 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 Sacramento

Funding is one of the most critical ingredients in building a successful startup – and Sacramento 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.

Sacramento's early-stage funding scene is developing, with several local players supporting nascent companies. Notable angel networks like the Sacramento Angels and Sierra Angels actively invest in early-stage tech firms. Venture capital firms such as Moneta Ventures and Impact Venture Capital also focus on early-stage and seed investments, often in sectors like technology, software, and AI. Government support exists, with the City of Sacramento offering Innovation Incubator and Accelerator Grants aimed at early-stage businesses. However, challenges remain, including limited access to capital for startups, a concern highlighted by a Sacramento Entrepreneurship Forum survey where 62% of local startups reported struggling with this. While efforts like the Growth Factory and NorCal AngelCon aim to address seed-stage funding gaps and educate new angel investors, securing that crucial initial capital can still be a hurdle for founders in the region.

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  

Sacramento 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.

Sacramento has a growing startup and innovation ecosystem with a collaborative and inclusive culture. The city offers numerous coworking spaces, such as Spaces R Street and The Urban Hive, providing flexible workspaces and networking opportunities. Tech and entrepreneurial events are frequent, including Global Entrepreneurship Week, various tech meetups, and workshops. The ecosystem actively supports early-stage founders through various programs. Accelerators and incubators like Growth Factory, Founder Institute, and StartupSac's FastTrac program offer mentorship, training, and resources. Some programs, like Roseville Rising and StartupSac's FastTrac, specifically target early-stage entrepreneurs and provide personalized insights and support, indicating a focus on nurturing new ventures rather than solely favoring mature startups or standardized programs. The city also provides funding opportunities and resources for startups, including those in specific sectors like the creative economy.

For many entrepreneurs, the energy and resources available in Sacramento 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 Sacramento, 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 Sacramento 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.

Sacramento has a growing and diverse talent pool for startups, partly due to its educational institutions like California State University, Sacramento and the Los Rios Community College District, which supply skilled graduates. The region has seen significant growth in tech jobs, with key sectors including healthcare, agri-tech, clean energy, and cybersecurity. There's a demand for technical skills like coding, data analysis, and cybersecurity, as well as soft skills. Local talent supports entrepreneurial growth through a collaborative environment, bolstered by incubators, accelerators, and networking opportunities. The presence of a shared workforce with the Bay Area also contributes to the talent pool.

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 Sacramento 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

Sacramento 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.

Sacramento offers a robust ecosystem for startups, featuring numerous incubators and accelerators like the Carlsen Center, Growth Factory, and industry-specific programs such as CleanStart and FourthWave. These provide vital mentorship, education, resources, and networking opportunities. Co-working spaces also support collaboration. Government initiatives play a significant role. The City of Sacramento offers Innovation Incubator and Accelerator Grants to fund organizations supporting early-stage businesses with services like pitch training and investor introductions. Programs like "EveryDay Creative" also provide mentorship, training, and financial support, particularly for underrepresented entrepreneurs. Access to various funding opportunities, including grants and loan programs, further helps businesses 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 Sacramento. 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 Sacramento Be Considered the Best Place to Launch a Startup?

There’s no doubt that Sacramento 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.

Entrepreneurs launching startups in Sacramento may encounter several challenges. While Sacramento offers a lower cost of living compared to other California tech hubs like the Bay Area, it still presents cost considerations for businesses and employees. The regulatory environment in California, including state and local regulations, can be complex and burdensome for small businesses, impacting areas like hiring and compliance. Additionally, while Sacramento's startup ecosystem is growing and becoming more competitive, new businesses will face existing companies and the need to differentiate themselves in the market. Navigating these factors requires careful planning and understanding of the local landscape.

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 Sacramento or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Sacramento 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