How to Start a Business in Des Moines

Des Moines is to insurance what Nashville is to healthcare: the industry's undisputed American capital. The city and its suburbs are home to more than 80 insurance companies including Principal Financial Group, EMC Insurance, FBL Financial Group, CUNA Mutual Group, and the Iowa operations of Nationwide, Wellmark Blue Cross Blue Shield, and dozens of others. Together, these companies employ tens of thousands of people with deep expertise in underwriting, claims processing, actuarial science, and risk management. For insurtech startups — companies building technology for the insurance industry — Des Moines provides a concentration of potential customers, domain experts, and pilot partners that no other city can match.

The Global Insurance Accelerator, located in downtown Des Moines, is the only major accelerator in the US focused exclusively on insurance technology. It connects startups directly with insurance company mentors and executives, creating a fast path from product demo to pilot program to enterprise contract. This access is invaluable for early-stage insurtech companies that might spend months or years trying to get meetings with insurance executives from a base in San Francisco or New York. Des Moines puts you in the same building.

Beyond insurance, Des Moines has growing strength in agtech (Iowa is the top agricultural state in the country for corn and soybeans), data center infrastructure (Microsoft, Facebook, and Google have built major facilities nearby), and general tech. The cost advantages are extreme: office space runs $12-$18 per square foot annually, housing is among the most affordable of any metro, and a 10-person startup can operate for under $60K per month in total costs. The limitations are equally clear: the tech talent pool is small, the VC ecosystem is minimal, the city lacks the cultural and nightlife attractions that help recruit young talent from coastal cities, and winters are harsh. Des Moines is ideal for focused, cost-conscious startups in insurance, agriculture, or financial services — and a harder sell for consumer tech or companies needing large engineering teams.

Iowa's business climate is moderate with some startup-specific advantages. The Iowa Innovation Fund provides seed and venture capital to Iowa-based startups. The Iowa Economic Development Authority offers various tax credits and incentive programs. Drake University and Iowa State University (in nearby Ames) contribute to the talent pipeline. The Greater Des Moines Partnership is an effective business development organization that coordinates corporate-startup connections.

Des Moines has invested in its downtown and the East Village neighborhood as tech and startup-friendly areas. The cost of starting and operating a business here is among the lowest of any city with meaningful startup infrastructure. The main challenge is the same one facing all smaller Midwest cities: attracting and retaining talent, especially senior technical and executive talent who have options to live in larger, more cosmopolitan cities. For founders who are targeting the insurance industry specifically, these trade-offs are well worth it — the customer access alone justifies the location.

Des Moines's startup community is centered in the downtown East Village and Court Avenue areas, with the Global Insurance Accelerator serving as the ecosystem's flagship institution. The community is small, supportive, and deeply connected to the insurance and agricultural industries. Des Moines Startup Week, Iowa Startup Accelerator events, and regular meetups provide networking opportunities. The investor landscape includes Next Level Ventures, VentureNet Iowa, and the Iowa Innovation Fund. The culture is Midwestern practical — Des Moines founders build businesses that solve real problems for real industries, with less emphasis on hype and more on revenue.

Des Moines benefits from a massive insurance industry (Principal Financial, Nationwide, EMC Insurance, FBL Financial), growing tech employers like Microsoft, Facebook, Google (data centers), and a supportive business community. The Global Insurance Accelerator is the city's flagship program.

• InsurTech
• Fintech
• AgTech
• Enterprise software
• Health tech
• Cybersecurity

• Global Insurance Accelerator
• Iowa Startup Accelerator
• Greater Des Moines Partnership
• ISU Startup Factory (Iowa State)
• Iowa SBDC

Very low. Average rent for a 1-bedroom is $900-$1,200/month. Iowa has a graduated state income tax. Des Moines offers some of the lowest startup costs of any US metro.

Iowa has moderate business regulations with a graduated income tax. LLC formation is straightforward. The state offers various tax credits for startups and the Iowa Innovation Fund provides seed and venture capital.