It is a great time to invest in Sioux Falls. Venture capitalists seeking a a low-cost place to do research into medical devices, real estate investors looking for a growing market, and wind energy and bio-fuel investors looking for a base of operations can all find unique opportunities in Sioux Falls.
The entrepreneurial environment is healthy in Sioux Falls. There capital flowing and the the government generally has a pro-business, anti-taxation stance. The growing population makes it a great place for local businesses, while the low cost business environment provides a haven for national or global industries.
The recent announcement of Linn Grove Ventures, a venture capitalist fund, should come as no surprise. Sioux Falls has long had a healthy flow of capital. What might strike business leaders as new, however, is the level on which Sioux Falls now competes for medical device venture funds. Minnesota, used to be one of the major players in this industry. As they have lost venture funds, South Dakota has gained. This most recent development underlines the fact that Sioux Falls is pulling big bucks.
The main draw for venture capital investment is low costs, combined with high skills. The medical research facilities at Sanford and Avera Hospitals, as well as Sanford School of Medicine at the University of South Dakota are some of the most advanced in the country, yet all costs, labor, real estate, infrastructure, and taxes, are lower in South Dakota than they are almost any where else in the country. That includes neighboring Minnesota, but especially includes the two traditional powerhouses, Massachusetts and California.
The second industry to gather investment momentum is energy. With turmoil in the Middle East pushing oil prices higher, look for a surge in investment in Middle Western energy. Bio-fuels have grown up and are looking more attractive than ever. The are more efficient than their crude ancestors and increasingly are being made from non-food stock.
Wind energy is one energy source that cannot be outsourced. South Dakota, western Minnesota, and North Dakota all have huge reserves of energetic wind. This mighty wind is drawing investment from around the world. Turbines are getting larger, more efficient, and returning profits to investors faster. An initial investment can pay for itself in as few as six years. After that, windustry analysts will tell you, the wind is free.
While the recent bust in real estate should make any investor cautious, Sioux Falls benefits from a growing population. As that population grows and business investment increases, the demand for housing and commercial real estate grows with them. So while Sioux Falls is not Miami Beach, real estate prices are a lot more stable than, say, Miami Beach.
Restauranteurs find success in Sioux Falls because it has a growing population and many families find themselves with disposable income for dining out. While the hotspots for dining have traditionally been on Minnesota Ave. and downtown. The area around Sioux Empire Mall features new local and chain restaurants.
For those with an entrepreneurial spirit, there are few places better for local investment than Sioux Falls, SD. It has a local economy that continues to grow and is at the crossroads of two industries that will form the backbone US economy in the future: biomedical research and domestic alternative energy.