Technology
Des Moines Startups Weigh Growth Against Risks and Ethical Questions
A 25 percent rise in new tech companies last year has spotlighted both opportunity and the harder questions that come with scaling in the local ecosystem.
How we reported this
The Des Moines startup ecosystem recorded a 25 percent surge in new tech companies in 2024, fueled by lower operating costs and backing from groups such as Start DSM and Plains Angels. That expansion now sits beside questions about long-term sustainability and the ethical choices that accompany rapid scaling.
The timing matters because the Greater Des Moines Partnership just wrapped its first Summer Startup Tour in July 2026, a month of free events meant to showcase entrepreneur resilience. At the same time, nine companies were highlighted as raising capital ahead of the Iowa Angel Investor Summit in downtown Des Moines, while Iowa Startup Week is set for September 28 to October 1 with its Best of the Midwest pitch competition.
Local programs and one company’s reach
Emily Steele, a Des Moines native, runs Hummingbirds, an influencer marketing firm that matches brands with local residents for hyperlocal campaigns. The company now operates in 22 cities nationwide, illustrating how a single Des Moines-based venture can extend far beyond Iowa while still drawing on the city’s community networks.
Those networks include the organizations credited in the 2024 growth numbers. Start DSM and Plains Angels are repeatedly named in local reporting as anchors that help new founders find mentors and early funding without the overhead common in larger coastal hubs.
Numbers on the ground
The 25 percent increase in new tech startups is the clearest recent statistic tied directly to Des Moines conditions. Nine of the companies selected for the Best of the Midwest showcase are actively seeking investors through the Iowa Angel Investor Summit, according to event organizers. Iowa Startup Week’s four-day schedule and pitch competition add concrete dates that local founders are now preparing for.
With those milestones approaching, founders and support organizations face the standard pressures that accompany any fast-growing sector: questions of capital access, talent retention, and responsible data use in marketing platforms like Hummingbirds. Local events such as the Summer Startup Tour and the upcoming pitch competition offer venues where those issues can be examined alongside the next round of funding announcements.