Las Vegas Emerges as a New Tech Startup Hub

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Las Vegas is transforming into a thriving hub for technology startups, attracting investments and innovation.

News Summary

Las Vegas is gaining recognition as a significant tech startup hub, challenging traditional powerhouses like Silicon Valley. New venture capital firm Desert Forge Ventures aims to boost local tech and biotech investments, including a major backing for WAVR Technologies. Meanwhile, TensorWave sets a record with $100 million Series A funding, specializing in AI GPU cloud computing. Alongside FundNV, these initiatives signal a promising shift towards a technology-driven economy in Las Vegas, fostering innovation and attracting talent.

Las Vegas is emerging as a promising new hub for tech startups, akin to Silicon Valley, with several major investments and innovations shaping the landscape. The city has been recognized as one of the top five in the United States for startup activity, despite its struggle with underfunding in the tech sector.

Desert Forge Ventures (DFV), a new venture capital firm founded by former UNLV President Len Jessup, aims to diversify and enhance the economy of the Las Vegas Valley through investments in tech and biotech companies. The initiative is set to kick off with the funding of WAVR Technologies, Inc., which specializes in atmospheric water harvesting and is a product of UNLV’s Da Kine Lab. The startup is led by Dr. Jeremy Cho, a mechanical engineering professor, alongside former UNLV students.

DFV plans to fund between five and ten local startups in its initial funding round, with an investment minimum set at $200,000. It has garnered support from more than a dozen initial investors predominantly from the Las Vegas Valley. The Nevada Governor’s Office of Economic Development has recognized DFV’s potential, partnering with the firm to match investments up to $10 million.

In a noteworthy development, TensorWave, a Las Vegas-based startup that was founded in December 2023, has recently raised $100 million in Series A funding—the largest of its kind in Nevada’s history. Specializing in AI GPU cloud computing, TensorWave aims to make artificial intelligence more accessible through its platform. The founders, including CEO Darrick Horton, chief growth officer Jeff Tatarchuk, and president/COO Piotr Tomasik, previously raised $43 million in seed funding, marking a significant milestone for the state’s startup ecosystem. Overall, TensorWave has raised a total of $145 million in capital and reports annual revenue exceeding $100 million. The company operates within a coworking space at Town Square, employing approximately 43 individuals, 35 of whom are based in Las Vegas.

TensorWave separates itself from competitors by using AMD GPUs instead of the major market player Nvidia GPUs, offering cost-effective solutions to users. The startup currently runs data centers in Arizona, Pennsylvania, and Florida and is seeking additional funding to continue its growth trajectory.

Supporting the rising startup scene, FundNV has emerged as a venture capital fund focused on pre-seed funding for local entrepreneurs. Led by Las Vegas natives Kristin Tomasik and Vicki Zhou, FundNV has successfully doubled its funding to $2 million in its second round of investment, with plans to support 20 startups. Prior investments have been made in companies such as SurgiStream, which provides surgical scheduling services, and Flawless AI, a dubbing service provider for films. Both Tomasik and Zhou bring significant experience within the startup ecosystem, aiming to foster and strengthen the community following years of funding challenges.

The increasing number of local investments and the rise of influential firms like DFV and FundNV signify a shift in the economic paradigm of Las Vegas, steering it towards a more technology-focused future. As innovation continues to flourish, the city is positioned to become a competitive player in the tech industry, recruiting talent and supporting businesses that aim to make their mark. This evolution is critical not only for the future prosperity of the local economy but also for establishing Las Vegas as a legitimate competitor on the national tech stage.