We explore the interaction of capital reallocation and entrepreneurship activities. Across a broad range of equipment types and industries, young firms are the predominant buyers of vintage physical capital previously owned by older local _rms. The pattern is strongest when financial constraints are most likely to bind. We argue that this pattern drives a mutually-beneficial relationship between co-located young and old firms through local used capital markets. The investment choices, growth, and job creation by start-ups depend on vintage capital supplied by older local _rms. Meanwhile incumbents accelerate capital replacement in the presence of young firms.