Home to the likes of Zoom and Salesforce, Denver is fast becoming a magnet for Northern tech firms looking to scale in the US thanks to a tempting melting pot of financial incentives and a pro-growth mindset that some founders believe the UK lacks.
Take Northern success story Bet365. The online gambling giant settled on the ‘Mile High City’ in Colorado for its new US headquarters in 2024, setting out ambitious plans to hire nearly 1,000 people in the US city – with over 300 planned over the next year.
The company has since transformed 120,000 sq ft of downtown office space, with the new HQ set to raise Bet365’s brand awareness across the US.
“Unveiling our US headquarters in beautiful downtown Denver represents a watershed moment in Bet365’s North American journey,” a Bet365 spokesperson said at the time.
“The Mile High City and its thriving business community is the ideal location to launch the next chapter in our company’s future, and we’re excited to create an industry-leading, innovative workplace in our new home.”
So what’s tempting Northern tech firms to expand to Denver? Aside from rubbing shoulders with fast-paced tech giants, it all boils down to those lucrative incentives on offer.
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Colorado offers a Job Growth Incentive Tax Credit, supporting companies with a state income tax credit equal to 50% of the FICA tax paid per net new job each year. Add to that the Strategic Fund Job Growth Incentive, which are direct cash payments for firms that create and maintain new permanent jobs, and the appeal is clear.
Taking advantage of the opportunities on offer, Bet365 secured over $14 million in performance-based tax credits from the Colorado Economic Development Commission to support its expansion over the next eight years.
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“We’re thrilled to welcome Bet365 and their US headquarters to Downtown Denver, marking a significant milestone in our region’s economic growth,” said Raymond H. Gonzales, president of the Metro Denver Economic Development Corporation (EDC), when the news was first revealed.
“With the aid of OEDIT’s incentives investment, this project will not only create up to 1,000 high-quality jobs but also solidify Denver’s reputation as a hub for innovation and business. We look forward to the lasting impact this partnership will have on our community, driving both economic opportunity and vibrancy for Denver’s downtown for years to come.”
Dual-headquartered between Denver and Manchester, the co-founder behind leading tech firm Matillion, hails Manchester as a “good place to do business” but there are a number of key reasons why some tech firms head over to US states like Colorado.
“It’s where a lot of the market is,” says Matthew Scullion, co-founder of Matillion. “Most late-stage software companies will have around 60% of their revenues coming from that one single country, in the millions. It’s also where the skills are. You can hire great software engineers here in Manchester but in the US, you can hire people that have repeatedly built software companies.”
Reflecting on Matillion’s own growth at £100m in revenues, he adds: “We’ve not yet moved to the US. Maybe we should, maybe we should have done it already. Maybe we will.”
Beyond expansion for the big tech players, founders behind smaller Northern start-ups are now eyeing potential moves to the likes of Denver to supercharge their growth too.
READ MORE: Northern tech firms consider moves to US as funding frustrations mount in the UK
Green Bean Studios recently launched in the US after securing IP in a lengthy two-year process. Frustrated by the lack of ‘risk appetite’ in the UK, founder Anita Frost admits she has considered moving across the Atlantic. Not just for expansion, but for good.
“We recently were approached by a launchpad in Denver and they offered us such a great opportunity. I would love to remain a Northern business that’s founded and invested in here but ultimately, the US is making it more attractive,” she explains.
“We need a policy change for investment. There’s a lack of investors’ appetite here. Why? Because investing is not attractive, and it’s only attractive in some sectors.”
Her stark warning? Founders are now making the “tough decision” of whether the UK can support them – or if they need to “jump ship somewhere else”.
The rise of Denver as a magnet for Northern tech firms shines a spotlight on a deeper issue: does the UK have the right tools and incentives for companies to grow, scale, and reinvest back into the economy?
At Prolific North’s GRAFT event on 21 May, as part of Digital City Festival, we’ll bring the debate to life with inspirational leaders confronting challenges like this head-on.
