“The challenge for greater Omaha, like all regions, is that current and past success is no guarantee of a bright future.”

The greater Omaha region’s startup community is wrestling with reality: Despite the city’s strong philanthropic culture and robust industries, it ranks 49th out of 50 states in startup survivability. A newly released report, Silicon Prairie Rising, lays out the challenges in the local entrepreneurial landscape and proposes a solution: A new “backbone organization” that aspires to unify resources, amplify founders’ voices and reshape Omaha’s innovation future.

A fragmented innovation ecosystem

Paul G. Smith Associates (PGSA) led the development of the Silicon Prairie Rising report, which was initially inspired by discussions on whether Omaha needed dedicated innovation districts to attract and retain tech-focused businesses. However, the research uncovered a more systemic problem.

The Silicon Prairie Rising report was compiled based on interviews with more than 40 people in the Omaha startup community and interviews with stakeholders in cities like Atlanta, Austin, Boston and Indianapolis that have experienced greater success with startup funding and longevity.

According to the report findings, Omaha’s innovation ecosystem is poorly organized and disconnected. The city’s innovation economy lags behind peer regions like Kansas City and Des Moines. Key challenges outlined in the report include:

• Low startup survival rate: Nebraska ranks 49th in startup survivability and 34th in new business formation.
• Weak research infrastructure: The state ranks 35th in business R&D spending and 33rd in academic research funding.
• Limited venture capital: Nebraska would need to attract an additional $600 million more annually to match the top 20 states.
• Dispersed resources: More than 40 business support organizations operate in Omaha, yet there is no central convener to coordinate their efforts.

A coordinated regional backbone organization

Rather than funneling resources into isolated tech-centric hubs, the report’s steering committee determined that Omaha needs a central organization to connect founders, universities, corporate partners and philanthropic groups. 

The backbone organization, modeled after successful entities like the Central Indiana Corporate Partnership in Indianapolis and Minneapolis’ Forge North, would take a holistic approach to advancing Omaha’s innovation economy.

The original intent was to create a group to explore innovation districts, said Joe Petsick, a seasoned entrepreneur now serving as Interim CEO of the yet-to-be-named backbone organization. “But as they went down that path, they realized this was a bigger conversation that needed to occur, which was more about how do we advance the entire ecosystem to the next level?”

The report recommends the organization take on key responsibilities, including:

• Entrepreneurial support: Mapping existing resources and filling gaps in funding, mentorship and technical assistance.
• Workforce development: Aligning education and training programs with the needs of high-growth sectors.
• Venture capital expansion: Encouraging early-stage funding and connecting founders with angel investors and venture firms.
• Public policy advocacy: Pushing for greater state support for research funding and economic incentives.

Omaha’s challenges are not unique, and the Silicon Prairie Rising report draws from national best practices. Indianapolis successfully built its innovation economy around the Central Indiana Corporate Partnership (CICP), while Minneapolis leveraged Forge North to connect entrepreneurs and investors across the region.

“When I think broadly about the idea of innovation and entrepreneurship, I think of the concepts of curiosity and passion,” said Stephen Osberg, Vice President at Paul G. Smith Associates. “Just focusing on those areas could have transformative impacts on the region.”

Founder first

Petsick said he sees lack of founder representation as a problem. He said many conversations occur in our ecosystem about how we can improve it, but founders are not a part of the dialog. 

“Some philanthropic groups have told us, ‘We want to support the startup community, but we don’t know how,’” Petsick said. “This organization aims to offer them a clearer pathway.”

Underrepresented entrepreneurs often face higher barriers to entry, including a lack of access to capital and mentorship. Petsick emphasized that equity and inclusion must be at the forefront of the new backbone organization’s strategy.

“There’s a big opportunity for what they’ve done and kind of the research that has come out of that to make an impact in the entrepreneurial ecosystem,” said Laurel Oetken, an interview participant in the report and Tech Nebraska executive director. “I think there’s a good ‘everyone has a voice at the table’ type of approach.”

“We’re trying to get going on this first step, and there’s going to be a lot more to come,” said Osberg, who signaled more announcements in the pipeline. “This backbone organization will bring together resources and coordinate programming to empower entrepreneurs and accelerate growth across Omaha and beyond.”

What’s next for Omaha?

While the backbone organization has not officially launched, Petsick and his team are working to finalize details, including the organization’s name, leadership team and first initiatives.

“The trick in building anything is, first, you have to get everyone pointed in the same cardinal direction,” Petsick explained. “Once that’s done, you need all those people focusing on the same point on that horizon. This is where we’re going.”

For now, the biggest test may be unity. If regional stakeholders like founders, investors, universities, corporations, nonprofits and city leaders rally around the Silicon Prairie Rising blueprint, Omaha could unlock the potential of its innovation assets. If not, the city risks business as usual: well-intended ideas overshadowed by missed opportunities, according to the report. 

For those interested in the full findings and recommendations, the Silicon Prairie Rising report is available here: Read the report.