Is San Jose 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.

San Jose 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 San Jose 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 San Jose

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

San Jose's early-stage funding scene is active, benefiting from its Silicon Valley location. The city is home to numerous venture capital firms and angel investors, though specific notable early-stage focused San Jose VCs weren't prominently listed in the results beyond general mentions and firms located nearby in Silicon Valley like Sequoia Capital or Accel that invest across the region. Angel networks are present, and the city government has offered grants, such as the AI Incentive Program providing up to $50,000 for early-stage AI startups. While Silicon Valley as a whole sees significant VC and angel investment, challenges include high competition and the broader regional issues of high cost of living and commercial real estate shifts. Despite a slight dip in overall employment, startup employment has seen growth.

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  

San Jose 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.

San Jose, a central part of Silicon Valley, boasts a dynamic startup and innovation culture. The city is a hub for entrepreneurial activity, hosting numerous tech companies and attracting significant venture capital. Coworking spaces are readily available, offering flexible workspaces and networking opportunities.,,, San Jose also features a variety of tech events, conferences, and meetups throughout the year.,,,,,, While the ecosystem is competitive and home to established giants, there are resources for early-stage founders, including accelerators, incubators, and targeted grant programs like those for AI startups.,,,, Support exists for both early-stage and more mature companies, with initiatives aimed at fostering growth across different stages.,

For many entrepreneurs, the energy and resources available in San Jose 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 San Jose, 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 San Jose 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.

San Jose offers startups access to a deep and diverse talent pool, crucial for entrepreneurial growth. Proximity to institutions like San Jose State University, Stanford, and UC Berkeley provides a steady stream of graduates, particularly in STEM fields. The region boasts high concentrations of professionals skilled in in-demand areas like cloud computing, AI, cybersecurity, and data science. This educated workforce, including a significant foreign-born population, fuels innovation and supports the development of new technologies. Local talent, combined with a strong ecosystem of investors and mentors, makes San Jose a fertile ground for launching and scaling ventures.

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 San Jose 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

San Jose 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.

San Jose offers a robust ecosystem for startups, featuring numerous accelerators and incubators that provide crucial funding, mentorship, resources, and networking opportunities. These programs help founders gain early-stage capital, access valuable tools, and build essential connections. The city also boasts a diverse talent pool due to its proximity to universities and tech companies. Government initiatives, particularly through the City of San José's Office of Economic Development and Cultural Affairs, offer significant support. They provide technical assistance, help with permitting processes, and offer grants like the Storefront Activation Grants. The city actively works to attract investment and foster innovation, including recent initiatives like grants for AI startups. Organizations like the Silicon Valley SBDC, a partner of the city, offer free advising on various business topics. This comprehensive support system helps startups navigate challenges and accelerate growth in the competitive Silicon Valley landscape.

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 San Jose. 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 San Jose Be Considered the Best Place to Launch a Startup?

There’s no doubt that San Jose 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 San Jose face significant challenges. Competition is intense due to the concentration of tech giants and numerous other startups vying for talent and funding. The high cost of living in the Bay Area makes attracting and retaining employees difficult, as salaries need to be competitive to afford housing and daily expenses. Additionally, navigating complex California and local regulations, including labor laws and permitting processes, can be time-consuming and costly for new businesses.

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

So, while San Jose 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