NEW ORLEANS —The 2023 Greater New Orleans Startup Report is now available. It was compiled by the Albert Lepage Center for Entrepreneurship and Innovation at Tulane University’s A. B. Freeman School of Business.
According to this year’s report, regional startups are staffing up and attracting more investment funding. This is despite headwinds from higher interest rates, inflation and pessimism over the national economy.
According to the report, 69% of companies surveyed are planning for new hires within the year. In addition, local startups have seen a significant rise in the procurement of angel investments, convertible debt and venture capital since 2019.
The gender gap in access to angel investment has shrunk from 13% in 2022 to 1% in 2023, and the gap for BIPOC founders dropped from 17% to 3% over the same period.
Despite a dip in average revenue, the manufacturing, healthcare, finance, retail, and hospitality sectors are projected to see substantial year-over-year growth heading into 2024.
The report also highlights the resilience of the local economy, with large-scale projects such as Tulane’s renovation of Charity Hospital and the return of the Super Bowl in 2025 contributing to its expansion. Additionally, companies in the region are offering more enticing benefits packages, with health insurance reaching an all-time high of 40.8% and other benefits seeing similar increases.
Looking ahead, the State Small Business Credit Initiative (SSBCI) is expected to allocate over $90 million in capital to organizations and venture funds in the state, providing more funding sources for companies in 2024.
