Las Vegas entrepreneurs say the valley now has a real startup ecosystem, but funding and research gaps still hold it back

What happened

Several of the valley's leading entrepreneurs and investors told the Las Vegas Review-Journal that Las Vegas has built a true tech startup ecosystem. The Review-Journal described it as a step toward Nevada's long-running goal of diversifying an economy driven by tourism.

The same report showed real limits. One local investor said the capital for very large funding rounds does not yet exist here, and state data ranks Nevada near the bottom nationally in academic research and science talent. You can follow more local business and growth coverage in our development section.

Signs of growth in the local startup scene

A record raise and new rankings

TensorWave, a Las Vegas-based artificial intelligence cloud platform, raised a state-record $350 million in Series B funding this year at a post-money valuation of $1.55 billion, the Review-Journal reported. Co-founder Piotr Tomasik, a UNLV graduate, said the community has come a long way.

Startup research platform StartupBlink ranked Las Vegas No. 2 in the world in startup community activity earlier this year and No. 23 in its U.S. startup ecosystem rankings. A CompTIA report projected that technology employment in the valley would grow at the highest rate in the country this year.

Local investment funds

Former UNLV President Len Jessup said a 2024 Lincy Institute report inspired him to start Desert Forge Ventures. That report found total local startup valuations rose from $1.9 billion in 2014 to $19 billion in 2024. The firm, affiliated with UNLV, launched in 2025, and its Fund 1 closed at $10 million and invested in 23 companies, all but one local.

StartUpNV, launched in 2017 by Jeff Saling, has invested $37 million in 32 startups, and its funds are worth a little more than $100 million, according to the Review-Journal. Battle Born Growth, the state-sponsored venture program, had deployed $36 million across 57 companies as of August.

The funding and research gaps

Competing with California

The state's Office of Entrepreneurship counted 139 venture deals into Nevada companies last year, totaling $1.31 billion. By comparison, California has attracted $366 billion in venture funding this year, according to data provider PitchBook. Jessup noted that TensorWave had to go to the Bay Area and other places to raise its $350 million.

Saling described the local scene as young. "Ours is probably like eighth graders, or maybe we just got into high school," he told the Review-Journal.

A thin research base

According to the Governor's Office of Economic Development, the biggest gap is the research base and the technical talent it produces. Its data shows research and development services make up 0.26 percent of employment in Las Vegas, compared with 2.27 percent in San Jose.

The data also ranks Nevada 50th of 50 states in academic R&D performed, 50th in patents awarded to academic institutions and 48th in science and engineering bachelor's degrees. GOED said it is working on the problem through the Knowledge Fund, which turns research at UNLV, UNR and the Desert Research Institute into market opportunities.

What the valley has going for it

The Review-Journal reported that the Las Vegas ecosystem has several competitive advantages, including no corporate or personal income tax. Tomasik pointed to a connected airport, good infrastructure and a relatively low cost of living compared with the coast. He also said major conferences such as CES and G2E bring tech professionals through the city, which helps build relationships.

Tomasik said the missing piece is a cycle in which big exits create wealthy founders who reinvest locally. "We need a couple more big wins and tech exits," he said.

What to watch next

• Desert Forge Ventures has targeted $25 million for its Fund 2, with fundraising planned to start later this year or in early 2027.
• GOED says strengthening Nevada's research base is a focus, including through the Knowledge Fund at UNLV, UNR and the Desert Research Institute.
• Local founders say more large startup exits are needed to help fund new Las Vegas companies.