Despite federal funding cuts and policy changes threatening startup financing, Philadelphia founders continue to grow their companies locally, even as investors pressure them to relocate, writes Sarah Huffman for Technical.ly.
During a recent dinner celebrating the 2025 Philly RealLIST Startups, several entrepreneurs noted that many factors influence the decision to leave or expand outside a home region, including funding, presence in the local ecosystem, and the opportunities and challenges of having a physical space in the area.
While Philadelphia is considered to be a great place to raise an early round, investors often suggest moving the business to places like New York or San Francisco as the company grows.
“I’m really scared if and when I do raise outside capital, that they’re going to make me go somewhere else,” said Nick Ashburn, founder and CEO of financial wellness platform Personawealth.
Despite its relative affordability, Philadelphia startups still face many of the same macroeconomic challenges as the rest of the country. The current issue is whether Congress will renew the crucial Small Business Innovation Research and Small Business Technology Transfer programs, also known as the US government’s “seed fund.”
While some startups choose to remain remote, others, like FSH Technologies, have opened an in-person workspace, which keeps them positively connected to Philadelphia.
Read more about the local startup founders and their commitment to Philly in Technical.ly.
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