Welcome to State of Startups in the Southeast 2024
The State of StartupsSM in the Southeast 2024 report shows a snapshot of five years of volatility in valuations and capital deployment and signs that the pendulum swing is gradually settling. This year's core narrative is balance. Capital and valuations are coming back into equilibrium. New sources of private capital are equipping investors and founders with flexibility and options for aligning their goals. AI is evolving from a product to a tool, finding its place inside startups as a resource.
In the Southeast, we continue to see investors judiciously prioritizing business quality over hype. The competitive landscape is strengthening, contributing to a healthier and more mature startup ecosystem. While the volatility of the past five years still echoes, the 2024 State of Startups in the Southeast trend report offers a good reason to believe that we have come through the trenches and are stabilizing in preparation for an exciting road ahead.
Highlights
5%
$6.0B was deployed across the Southeast 1H 2024 – up about 5% from $5.7B in 2H 2023, but down slightly from $6.3B in 1H 2023.
$11.97 B
Total capital projected for FY2024 in the Southeast is down slightly from the $12.1B deployed in the region in FY2023.
23%
Capital deployed annually in the Southeast increased approximately 23% between FY2018 and (projected) FY2024.
$250,000
The average check size increased 5% (about $250,000) from $4.69M in FY2018 to $4.94M in 1H 2024.
The Context
The amount of capital deployed so far in 2024 is down slightly from this time last year and is projected to be slightly less than in 2023 overall. Nonetheless, funding is up notably, and check sizes have increased since 2018.
The trend reinforces that the private market was in the midst of an overcorrection in 2023 after funding and valuation spikes between 2020 and 2022. So far, 2024 offers good reasons to believe that the startup economy appears to have come through the trenches and is resuming pre-pandemic trends. Invested capital has stabilized year over year, valuations are showing signs of growth, and the ecosystem has adjusted to operating in the current environment.
The Southeast and the U.S. seem to be settling into the paradigms that defined the startup economy before the wild ride of 2020, 2021, and 2022.
Deal Count and Capital Invested in the Southeast ($ Millions by Quarter)
Through the Trough
After the up-and-down bell curve of capital deployed in 2021 and 2022, private market investment data is starting to reveal signs of recovery to a pre-pandemic equilibrium. Between 2020 and 2022, low interest rates, abundant capital, and a booming technology market caused funding amounts to skyrocket. The amount invested declined in 2023 due to factors like rising interest rates, geopolitical tensions, and concerns about economic growth.
Many businesses that raised money at historically high valuations during the 2020-2022 peak have struggled to survive as the market shifted back to earth. At the end of Q2 2024, 30% of VC deals over the previous six months were flat or down rounds—the highest number in a decade. While painful, we can view a flat/down-round cycle as a normal part of the recovery process.
Interestingly, the median valuation projected for 2024 for the Southeast and the U.S. shows median post-money valuations increasing to record highs. The trend shows a tilt toward investing in more mature businesses, most likely through follow-ons. The willingness to deploy capital while moving up in value is the first sign of recovery we've seen in years.
At the same time, capital is being deployed cautiously in amounts that are appropriate to the startup's maturity, size, sector, and business model. This is a tangible, data-driven sign of the pendulum swinging back to historical VC norms. After a period of economic volatility, investors may be more comfortable putting money into follow-on rounds in later-stage companies that have shown traction and signs of endurance.
This trend is not specific to the Southeast, though average check sizes generally remained more consistent in the region than in the U.S., even during the 2020-2022 spike. Across the board, it's a good sign that things are looking up. We expect investors to come off the sidelines and begin putting money to work again in the coming months. More capital will be invested, allowing more deals to be completed.
Average Check Size Compared to Median Post Valuation
Key Takeaway
The startup ecosystem shows clear signs of recovery from the aggressive run-up that led many startups to raise capital at unreasonably high valuations, only to be saddled with them after (multiple) crashes over the past two-and-a-half years. Investment managers who took a disciplined approach to capital deployment, making small initial investments and doing careful follow-on rounds for proven companies, have fared better than those who aggressively invested at higher and higher multiples. However, there is hope for investors and startups as healthy signs of growth have appeared.
Activity in 2024 seems to confirm that we are returning to a funding environment where capital invested aligns more closely with the company's performance to date rather than risky, inflated deal sizes. A well-considered, diligent approach to capital deployment and valuation will support a more sustainable startup investment ecosystem. Less capital deployed signals a more competitive fundraising environment where those seeking investment will have to lean heavily on their traction because the fundamentals of business matter now more than ever.
Implication for Innovators
As funding remains tight relative to 2020-2022 levels, early-stage companies must focus on demonstrating clear value propositions and sustainable business models to attract capital. Established companies that have weathered economic challenges may find more opportunities for follow-on rounds in the coming quarters.
Implication for Investors
The return to historical norms coupled with rising valuations indicates a more balanced risk-reward environment. Investors should be prepared to resume deploying capital, with a particular focus on later-stage startups that have demonstrated resilience and still have the potential for growth. From a regional standpoint, the Southeast remains consistent and attractive, still showing less volatility in check sizes than the broader U.S. market.
The Southeast is Ahead. (That's Fantastic.)
Examining the time between funding rounds shows an interesting, possibly unexpected trend.
As the startup investment environment has begun to stabilize, the time between venture rounds is shortening in the Southeast while rising dramatically in the U.S. overall. This converse trend, which started in 2022 and has continued to date, reinforces the Southeast region's maturation as a competitive startup market.
Historically, investors in the Southeast have taken an extended amount of time between funding rounds. Some have pointed to a lack of reliable capital as the reason for being slower than the national average. Without considerable, dedicated funds covering the Southeast, entrepreneurs had to risk going unfunded or move their company to a larger innovation hub.
As the Southeast has matured, a new explanation has emerged: the region's distinct approach to investing, making smaller, more measured checks into promising companies. This approach provided resilience during the startup economy swings. By contrast, the time between rounds for investors in other areas of the U.S. has moved with the accessibility of money. When money was 'free,' time between rounds was short. As capital has become more expensive, the time between rounds has extended. This corollary exposes how tied the startup ecosystem is to the capital markets.
Looking at the investment style in the Southeast, you see little to no variance in time between investment rounds, except for in 2019. The region is consistent, regardless of the multiples used for investment or capital availability. In 2024, the Southeast is investing in follow-on rounds faster than the U.S. This difference can't be attributed to an influx of capital in the Southeast that needs to be deployed. Rather, it is because the regional investment philosophy has stayed the same.
It's been said that business fundamentals never go out of style. The time-tested (and proven) approach to investing in the Southeast proves the maxim is right.
Time Between VC Rounds Mean by Year and Region
Key Takeaway
The 2023 State of Startups report introduced the notion that the Southeast tends to invest in its own way. Investors in the region tend to be cautious, waiting a few months behind other innovation markets before deploying capital. They also tend to make smaller initial investments and follow up with companies demonstrating value and sustainability. This year’s report has shown that these differentiated, thoughtful investment strategies have defined the Southeast. As the venture environment has returned to pre-pandemic levels, these strategies have positioned the region as a healthy startup investment environment.
Implication for Innovators
For innovators in the Southeast, the quicker reinvestment cycles in 2023 and 2024 present opportunities for earlier-stage companies to secure follow-on funding. As the region's ecosystem has matured, startups with strong fundamentals and sustainable growth can now more reliably attract capital, offering a more supportive environment for scaling businesses.
Implication for Investors
The shortening time between funding rounds in the Southeast signals that the region has matured into a competitive and attractive market for venture capital. Investors who adopt a thoughtful, measured approach—aligned with the Southeast's historical discipline—are well-positioned to capitalize on resilient startups that have persevered through the recent headwinds.
Private Credit is a Big Fish in the Capital Pool.
Over the past few years, private equity checks tightened (and in some cases disappeared). Bank lending scaled back (and in some cases ceased) due to regulations and economic volatility. The collapse that began with Silicon Valley Bank in March 2023 hit other bank lenders like a line of dominoes. While these challenges have played into the evolution of private capital, there also has been a growing recognition that traditional VC and PE funding sources are not the only ways for founders and investors to participate financially in the innovation economy.
Private credit (direct lending) activity has grown 400% over the past few years. Approximately 4,000 private credit funds were launched in the U.S. between 2010 and the start of 2024. The velocity and variety of the funds are evidence of the growing demand for alternative investment vehicles and non-bank sources of capital. This alternative private market asset is gaining traction faster than any other as a source of capital for entrepreneurs and a high-liquidity portfolio addition for private market investors.
As more investors have added the asset to their portfolios, more private credit funding has become available to entrepreneurs. Mid-sized private market firms ($1B-$10B AUM) have actively launched these vehicles. This activity has fueled the growth of this asset class and has been used, rightly or wrongly, to fill a gap left by a lag in equity deals.
For private companies experiencing rapid traction and scale, private credit can be a viable alternative to equity investments. Debt-based capital does not dilute ownership. It can be a more efficient funding source than equity and is inherently flexible. However, as is the case with any lending source, private debt brings real risk. If the borrowing company underperforms, debt holders can assume ownership of the business. As with any funding consideration, private credit warrants a careful cost-benefit analysis.
Private Debt Invested ($Millions)
Key Takeaway
The private market has changed dramatically since 2017, when we introduced the State of Startups in the Southeast report. Founders have more ways to fund their businesses via private equity and credit (debt) options, enabling them to capture growth opportunities using capital structures that align with their tolerance for dilution and risk. Investors have more asset choices available to build diversified portfolios that align with their wealth management goals.
Although the startup investment environment has endured volatility over the past couple of years, the dramatic emergence of this asset class signals that we are still in a golden age of private market investing.
Implication for Innovators
Private credit lenders are becoming increasingly willing to tailor deals to a company's specific needs, enabling more early-stage companies to scale efficiently without giving up equity. Founders with strong growth and traction should at least consider the growing abundance of private credit as a promising strategic funding alternative.
Implication for Investors
The rise of private credit presents a valuable addition to a diversified portfolio. As this non-correlated asset class continues to expand, it can offer steady income streams and liquidity options, making it an attractive source of regular returns, particularly in volatile market conditions.
AI is the Tool, Not the Toolbelt.
The blistering pace of AI innovation has impacted every sector across the U.S. Therefore, the data pulled for this trend focuses on companies that integrate AI rather than AI as a separate vertical.
As mentioned earlier in the report, during the spike between 2020 and 2022, many startups raised at heightened valuations that they could not grow out of in the suppressed funding environment. However, with the valuation crash impacting nearly every sector, heightened valuations are still evident among companies within the AI sector classification. Perhaps because there is money to be raised, but more likely because it’s necessary for survival, a growing majority of companies in traditional sectors (such as SaaS, Fintech, and Healthcare) are now co-classified as AI because they are integrating the technology into the solutions they bring to the market.
The trend here is clear. AI is no longer just a new category. It has become a vital (and expected) tool in the toolbox. Massive amounts of money have gone into building the tools, as is seen in funding anomalies over the past five years. Major players like OpenAI have closed multi-billion dollar deals in the private market, which has skewed aggregate data. In the Southeast, two deals (Epic Games and OneTrust) drove up the capital invested in 2020. Both investments fell under ‘traditional’ sectors (Gaming and Fintech, respectively) and AI in the dataset.
From a capital deployed and post-money valuation standpoint, the AI trend shows promising signs of maturity. After more than doubling between 2019 and 2022, capital and valuations began to find some balance in 2023. In the first half of 2024, this trend seems to be continuing. Valuations have continued to climb but funding appears to be steady. The proliferation of AI throughout all industries and segments is starting to make the datasets match. Soon, there will be no difference between “companies that integrate AI” and “traditional” companies. They will be one and the same. The AI ‘wave’ has not crashed, but rather, the market has shifted from AI hype to AI saturation, with the technology functioning as a part of almost all startups.
Considering that investors are focusing on how companies are integrating AI, it is worthwhile noting which industries are benefiting most. SaaS growth has continued to outpace other sectors on measures of median value, deal count, capital invested, and check size. Nationally, SaaS businesses with AI integration are capturing almost three times more capital than startups in other verticals. The progress is a testament to the logical and successful use of AI technologies in the sector.
Median Post Valuation and Capital Invested
Key Takeaway
For most startups, the important takeaway is that building a pure AI company is not a path to success. In fact, across the board, most check sizes in traditional categories remain larger than those going to pure AI plays (mega deals excluded). Instead of trying to drive funding with AI innovation, businesses—across all stages of maturity—should consider AI a core business function and a tool in the toolbox.
The AI hype cycle is not dead, but the market is settling. Investors still want to see high-growth startups with solid business models solving real problems in fundamental sectors. Companies can differentiate themselves by integrating an AI strategy and resource set in the same way that they build and execute their other core functions (e.g., go-to-market) to make their business more efficient and effective.
Implication for Innovators
AI has the potential to be a core component of innovation and a powerful tool for growth. Strategically integrating AI to complement operations, improve customer experiences, and develop innovative offerings will do more for the business than trying to compete against pure AI companies that have access to massive datasets.
Implication for Investors
It’s important to avoid hype cycles around new technology, and AI is no different. Focus on companies that demonstrate a deep understanding of how AI can enhance their core business strategies and use the technology to solve real, complex problems.
State-by-State Comparisons
The Southeastern startup and investment landscape in 2024 reveals a region settling back into pre-pandemic growth trends with levels of recovery and traction varying by state. Alabama and Georgia continue to deploy slightly smaller amounts of capital than in recent years as they stabilize and return to deal activity that resembles pre-2020 levels. Florida and South Carolina stand out as growth stories, continuing to match or surpass pre-pandemic figures. States like Kentucky, Mississippi, and Tennessee demonstrate that capital deployment may fluctuate, yet deal activity remains strong, especially for early-stage startups.
Each state shows distinct startup and investor dynamics driven by their dominant sectors and capital sources. Across every state, incubators and accelerators have become integral resources, and in many states, we see new partnerships and syndicates forming.
This data reinforces what we've seen in the State of Startups report for years: the Southeast is a resilient investment environment where startups can launch and scale. Collectively, these trends signal that even through economic headwinds and capital spikes, the Southeastern startup ecosystem is adaptive, collaborative, and steady.
Click on a state to review its corresponding data
State: Georgia
State: Alabama
State: Florida
State: Mississippi
State: Kentucky
State: Tennessee
State: Virginia
State: South Carolina
State: North Carolina
2,293
number of investments since 2019
$14B
dollars invested since 2019
170
Number of investments YTD 2024
$675M
Dollars invested YTD 2024
Georgia has remained a generally steady startup environment from a deal flow standpoint, though it is recovering slightly slower than some other states in the Southeast. Deal count rebounded in 2023 (373) to pre-pandemic levels (365 in 2019), but invested capital ($1.6B in 2023) did not entirely rebound ($2.5B in 2019). At the halfway point of 2024, Georgia looks much like it did in 2023, with more deals happening during the second half of the year. SaaS remains the predominant sector focus, capturing more than twice the number of deals than Healthcare or Fintech. Nonetheless, Fintech companies continue to capture the largest deals ($2B invested across 184 companies).
465
number of investments since 2019
$1.37B
dollars invested since 2019
36
Number of investments YTD 2024
$55M
Dollars invested YTD 2024
Deal activity in Alabama is settling into pre-pandemic trends. Halfway through 2024, the 36 deals totaling $55M in capital is a fraction of the activity in 2023 (101 deals valuing $394M). Looking at the years before the pandemic spike, however, deals and capital deployed are on track to look a lot like 2019. The top sectors in the state remain SaaS and Healthcare, and both are on track to do well in 2024. Alabama is a more moderate startup environment than most other states in the Southeast. Still, its funding sources look much the same, with most deal activity happening in incubators and accelerators.
4,853
number of investments since 2019
$28B
dollars invested since 2019
426
Number of investments YTD 2024
$1.8B
Dollars invested YTD 2024
At midway in 2024, Florida is on track to match 2023 and surpass pre-pandemic numbers. Deal count has remained relatively steady, but the amount of capital invested is a fraction of what it was during the 2021 and 2022 surges. SaaS has held strong as the top sector in the state from the standpoint of dollars invested ($6.3B) and deal counts (1,616). Fintech is also holding steady ($5.2B via 564 deals) and capturing larger deal sizes than other sectors. The VC category in Florida remains an incredibly robust deal channel, almost matching the number of investments made by incubators and accelerators.
540
number of investments since 2019
$1.35B
dollars invested since 2019
54
Number of investments YTD 2024
$72M
Dollars invested YTD 2024
Deal activity in Kentucky has been relatively steady since 2022. The first half of the year (54 deals) puts the state precisely on track with 2023 (110) and 2022 (98). From a capital-invested standpoint, however, the state is on a notable upward trend. In 2022, Kentucky startups took in $86M in investments. That number grew to $118M in 2023. The rate is on track to reach approximately $150M in 2024 if current year activity holds. Kentucky VC activity almost parallels the deals happening in incubators and accelerators, primarily due to a unique partnership between Keyhorse Capital (VC), the Kentucky Science and Technology Corporation, and the Kentucky Cabinet for Economic Development.
96
number of investments since 2019
$136M
dollars invested since 2019
9
Number of investments YTD 2024
$1M
Dollars invested YTD 2024
Based on the first half of 2024, Mississippi appears to be on track to do more deals than in 2023, a 'dry' year following blistering levels of startup funding activity in 2022. Most of the funding appears to be pre- and seed-stage, as capital invested YTD is only $1M. Deal activity is happening mainly in incubators and accelerator programs from the Mississippi State University Entrepreneurship Center and CoBuilders – which support more startups than all the leading VCs, Angels, and State-level Government and Non-profit VC grants combined.
2,319
number of investments since 2019
$17.7B
dollars invested since 2019
198
Number of investments YTD 2024
$1.8B
Dollars invested YTD 2024
North Carolina remains a healthy and steady startup and investment environment. Except for a capital downswing in 2023, the state has supported its startup ecosystem consistently. In the first half of 2024, North Carolina startup funding has almost matched the FY2023 amount ($1.8B), signaling a rebound to more and larger deals. SaaS and Biotech/Pharma continue to capture the majority of funding, showing the state's focus on growing stable, non-cyclical industry businesses. Triangle Tweener Fund, launched in 2022, has dominated VC activity in the state. It appears to have impacted the state's deal count with its model focused on providing a small amount of capital to 10 late-seed startups per quarter.
480
number of investments since 2019
$1.5B
dollars invested since 2019
45
Number of investments YTD 2024
$129M
Dollars invested YTD 2024
2024 appears to be a growth year for South Carolina. Since 2019, deal counts have fluctuated up and down by approximately 13-15% each year. If the state continues to make deals at the rate it has in the first half of 2024, it could reach closer to a 20-25% increase over 2023 – a more considerable increase than the state saw between the funding highs of 2021 and 2022. Similarly, capital invested thus far in 2024 ($129M) is almost equal to all of 2023 ($137M). Much of the activity is driven by a few entities and collectives, most notably SC Launch, a member-based investment organization that is part of the South Carolina Research Authority. SaaS companies continue to generate the most capital, and deals appear to be getting larger.
1,153
number of investments since 2019
$6.3B
dollars invested since 2019
110
Number of investments YTD 2024
$340M
Dollars invested YTD 2024
Tennessee has two notable storylines in 2024. The first is the heft of the Healthcare sector, with $3.3B invested in 217 deals, which far exceeds the size of deals in any other industry, including SaaS ($854M into 335 deals). The second is the precipitous drop in capital invested in the first half of 2024—almost 60% less than in the first half of 2023. While investments held steady at around $1.3B annually between 2019 and 2023, the first half of 2024 has only seen $340M deployed. The drop is attributed to economic headwinds primarily attributed to a general slowdown in spending by organizations in the state due to new tax policies. Nonetheless, deal counts are on track to remain steady, indicating that money is being deployed, but in smaller amounts, which tracks with the outsized amount of pre-seed- and seed-stage activity coming from incubators and accelerators.
2,048
number of investments since 2019
$11.8B
dollars invested since 2019
163
Number of investments YTD 2024
$1.1B
Dollars invested YTD 2024
Virginia is an exemplar of a steadfast startup and investment environment. The state had a slight increase in deals and a small increase in the amount of capital invested per deal during the 2021-2022 spikes, then continued to increase its deal count in 2023. The first half of 2024 indicates a slight slowdown in deal activity and funding, but the state's activity ($1.1B into 163 deals) remains within the range held since 2019. As was the case in 2023, most deals are going to SaaS businesses, and the most significant deal sizes are going to Healthcare companies. Notably, Virginia Venture Partners has made more investments (162) than all leading VCs combined. The entity is capitalized by the Commonwealth of Virginia and the US Treasury Department's SSBCI Program and operates direct and fund-of-fund investments.
Top Industries
SaaS | $4,316M
Fintech | $2,150M
Healthcare | $1,647M
SaaS | 848
Consumer | 315
Healthcare | 279
Total Deals and Investments
Investment Leaders by Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
Government & Non-Profit VC-Backed Funds
Top Industries
SaaS | $364M
Healthcare | $245M
Biotech / Pharma | $120M
SaaS | 130
Healthcare | 79
Consumer | 58
Total Deals and Investments
Investment Leaders by Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
Government & Non-Profit VC-Backed Funds
Top Industries
SaaS | $6,315M
Fintech | $5,205M
Healthcare | $2,632M
SaaS | 1,616
Consumer | 794
Fintech | 564
Total Deals and Investments
Investment Leaders by Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
Government & Non-Profit VC-Backed Funds
Top Industries
SaaS | $280M
Biotech / Pharma | $269M
Healthcare | $172M
SaaS | 163
Consumer | 121
Healthcare | 86
Total Deals and Investments
Investment Leaders by Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
Government & Non-Profit VC-Backed Funds
Top Industries
Biotech / Pharma | $26M
Cybersecurity | $10M
SaaS | $6M
Consumer | 30
SaaS | 18
Healthcare | 13
Total Deals and Investments
Investment Leaders by Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
Government & Non-Profit VC-Backed Funds
Top Industries
SaaS | $7,696M
Biotech / Pharma | $3,505M
Fintech | $1,449M
SaaS | 628
Consumer | 391
Biotech / Pharma | 321
Total Deals and Investments
Investment Leaders by Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
Government & Non-Profit VC-Backed Funds
Top Industries
SaaS | $294M
Fintech | $283M
Healthcare | $138M
SaaS | 146
Consumer | 91
Healthcare | 61
Total Deals and Investments
Investment Leaders by Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
Government & Non-Profit VC-Backed Funds
Top Industries
Healthcare | $3,286 M
SaaS | $854M
Fintech | $596M
SaaS | 335
Healthcare | 217
Consumer | 165
Total Deals and Investments
Investment Leaders by Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
Government & Non-Profit VC-Backed Funds
Top Industries
SaaS | $2,844M
Healthcare | $1,706M
Biotech / Pharma | $1,044M
SaaS | 623
Consumer | 253
Healthcare | 209
Total Deals and Investments
Investment Leaders by Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
Government & Non-Profit VC-Backed Funds
Conclusion and Methodology
The Southeast appears to be at an inflection point in a journey toward equilibrium following five years of volatility in valuations and capital deployment. This year’s core narrative centers on balance, as deployed capital and valuations begin to realign, private credit becomes an even stronger option for founders and investors, and AI becomes a vital operational tool instead of a source of frothy hype.
As this narrative takes hold, the Southeast is positioned as a healthy startup ecosystem poised to continue competing for high-quality startups. State-by-state, the progress remains somewhat uneven, but each state showcases unique dynamics influenced by its dominant sectors and capital sources.
In all, the report confirms what we began to see in 2023: the Southeastern startup landscape is resilient and adaptable, and ready to lead as an innovation economy.
Summary Tables and Graphs
Top 10s
These rankings are based on firms that did deals with a startup headquartered in the Southeast.
| VC Funds | Deal Count | |
|---|---|---|
| 1 | Virginia Venture Partners | 163 |
| 2 | Keyhorse Capital | 129 |
| 3 | Triangle Tweener Fund | 117 |
| 4 | Gaingels | 106 |
| 5 | Alumni Ventures | 79 |
| 6 | Florida Funders | 76 |
| 7 | Right Side Capital Management | 69 |
| 8 | Service Provider Capital | 64 |
| 9 | Tech Square Ventures | 64 |
| 10 | Keiretsu Forum | 59 |
| Angels | Deal Count | |
|---|---|---|
| 1 | VentureSouth | 71 |
| 2 | Charlottesville Angel Network | 42 |
| 3 | Miami Angels | 31 |
| 4 | Atlanta Technology Angels | 30 |
| 5 | CAV Angels | 26 |
| 6 | Bluegrass Angels | 24 |
| 7 | 757 Angels | 23 |
| 8 | Mark Cuban | 19 |
| 9 | IrishAngels | 18 |
| 10 | Sand Hill Angels | 17 |
| Incubators / Accelerators | Deal Count | |
|---|---|---|
| 1 | Techstars | 348 |
| 2 | Plug and Play Tech Center | 156 |
| 3 | NC Idea | 132 |
| 4 | Y Combinator | 119 |
| 5 | Google for Startups | 95 |
| 6 | Astralabs | 86 |
| 7 | gBETA | 80 |
| 8 | National Science Foundation Innovation Corps Program | 78 |
| 9 | Nashville Entrepreneur Center | 72 |
| 10 | FAU Tech Runway | 71 |
| Government-Backed Venture Investments | Deal Count | |
|---|---|---|
| 1 | National Science Foundation | 86 |
| 2 | SC Launch | 53 |
| 3 | Georgia Research Alliance | 48 |
| 4 | Launch Tennessee | 37 |
| 5 | National Institutes of Health | 25 |
| 6 | Institute for Commercialization of Florida Technology | 14 |
| 7 | Bronze Valley | 12 |
| 8 | North Carolina Biotechnology Center | 9 |
| 9 | Innovate Mississippi | 7 |
| 10 | In-Q-Tel | 6 |
Total Deal Counts and Investments in the Southeast (Rank by Total $ Invested)
Notable Exits by State Since 2019
Rankings prior to 2024 were based on deal size. For 2024 and going forward, rankings are based on post-money valuation. The amended criteria caused some changes to the companies listed in the tables for each state. All other criteria have remained consistent (formerly backed by private market funds, full or partial exits via IPO or private market transaction, minimum transaction value of $1B, since January 2019).
Companies in Orange are new exits since 2023.
| Company | Buyer | Year | Value ($ Million) |
|---|---|---|---|
| Abaco Systems | Ametex | 2021 | $1,345 |
| Point Broadband | Berkshire Partners | 2023 | $1,300 |
| Wittichen Supply Company | Bejer Ref | 2023 | $1,373 |
| Company | Buyer | Year | Value ($ Million) |
|---|---|---|---|
| Ultimate Software Group | UKG | 2019 | $7,525 |
| Chewy | IPO | 2019 | $8,769 |
| Advanced Disposal | Wast Management | 2020 | $2,800 |
| AeroCare Holdings | AdaptHealth | 2021 | $2,431 |
| Ion Media | E.W. Scripps | 2021 | $2,650 |
| KnowBe4 | IPO | 2021 | $2,657 |
| Tech Data | SYNNEX | 2021 | $7,224 |
| Anaplan | Thomabravo | 2022 | $10,700 |
| Cloud Software Group | Vista Equity Partners, Elliott Investment Management, Ares Management | 2022 | $28,551 |
| KnowBe4 | Vista Equity Partners | 2023 | $4,600 |
| Company | Buyer | Year | Value ($ Million) |
|---|---|---|---|
| HD Supply | The Home Depot | 2020 | $8,637 |
| Aveanna Healthcare | IPO | 2021 | $2,162 |
| First Advantage | IPO | 2021 | $2,248 |
| BMC Stock Holdings | Builders Firstsource | 2021 | $3,658 |
| SalesLoft | Vista Equity Partners | 2022 | $2,300 |
| Cloudmed | R1 RCM | 2022 | $4,100 |
| Immucor | Werfen Life Group | 2023 | $2,000 |
| Wencor Group | Heico | 2023 | $2,054 |
| EVO Payments | Global Payments | 2023 | $4,000 |
| CP Kelco | Tate & Lyle | 2024 | $1,900 |
| Company | Buyer | Year | Value ($ Million) |
|---|---|---|---|
| BrightSpring Health Services | Kohlberg Kravis Roberts, Walgreens Boots Alliance | 2019 | $3,308 |
| Appriss Insights | Equifax | 2021 | $1,825 |
| BrightSpring Health Services | IPO | 2024 | $2,225 |
| Waystar Health | IPO | 2024 | $3,583 |
| Company | Buyer | Year | Value ($ Million) |
|---|---|---|---|
| Yak Access | United Rentals | 2024 | $1,825 |
| Company | Buyer | Year | Value ($ Million) |
|---|---|---|---|
| Arysta LifeScience | UPL | 2019 | $4,700 |
| Red Hat | IBM | 2019 | $34,000 |
| Asklepios BioPharmaceutical | Bayer | 2020 | $3,861 |
| Pharmaceutical Product Development | IPO | 2020 | $9,160 |
| Pharmaceutical Product Development | Thermer Fisher Scientific | 2021 | $16,036 |
| Driven Brands | IPO | 2021 | $3,624 |
| Hayward Industries | IPO | 2021 | $3,937 |
| AvidXchange | IPO | 2021 | $4,894 |
| PRA Health Sciences | Icon | 2021 | $12,042 |
| Syneos Health | Patient Square Capital, Veritas Capital, Elliott Investment Management | 2023 | $7,100 |
| Company | Buyer | Year | Value ($ Million) |
|---|---|---|---|
| Hargary Communications | Sparklight | 2021 | $2,117 |
| Natalist | Everly Health | 2021 | $2,900 |
| Diversey | IPO | 2021 | $4,560 |
| Company | Buyer | Year | Value ($ Million) |
|---|---|---|---|
| Compassus | TowerBrook Capital Partners, Ascension Health | 2019 | $1,000 |
| Change Healthcare | IPO | 2019 | $1,769 |
| SmileDirectClub | IPO | 2019 | $8,852 |
| NaviHealth | Optum | 2020 | $2,954 |
| Nom Nom (Food Products) | Mars | 2021 | $1,000 |
| Shoals Technologies Group | IPO | 2021 | $4,165 |
| TransCore | ST Engineering | 2022 | $2,680 |
| Tivity Health | Stoneback Capital | 2022 | $3,200 |
| Change Healthcare | Optum | 2022 | $13,000 |
| OneOncology | AmerisourceBergen, TPG | 2023 | $2,100 |
| Pilot Company | Berkshire Hathaway | 2023 | $19,807 |
| Company | Buyer | Year | Value ($ Million) |
|---|---|---|---|
| Engility | Science Applications International | 2019 | $2,160 |
| EdgeConneX | EQT | 2020 | $2,750 |
| InSite Wireless Group | American Tower | 2020 | $3,500 |
| Alion Science and Technology | Huntington Ingalls Industries | 2021 | $1,780 |
| Privia Health (NAS: PRVA) | IPO | 2021 | $2,364 |
| Neustar | TransUnion | 2021 | $3,100 |
| Fluence (Energy Storage) (NAS: FLNC) | IPO | 2021 | $4,667 |
| Trader Interactive | Carsales.com | 2022 | $1,575 |
| PAE | Amentum Services | 2022 | $1,900 |
| Mandiant | Alphabet | 2022 | $6,101 |
Southeastern Unicorns
The 32 Southeastern Unicorns listed in the chart below reflect additions since 2019. Between July 2023 and June 2024, the region gained one (1) new Unicorn – Headway, a Healthcare & Life Sciences company based in Florida. The 2023 Unicorn environment was significantly less active than the activity in 2022, when the region gained 11 new Unicorns in the sectors tracked for this report.
Companies in Orange are new additions since 2023.
| Company | Unicorn Date | Industry | Total ($B) |
|---|---|---|---|
| Kaseya | 3/27/2019 | Enterprise Tech | $2 |
| Pipe | 5/19/2021 | Financial Services | $2 |
| Offchain Labs | 8/31/2021 | Enterprise Tech | $1.20 |
| Papa | 11/4/2021 | Healthcare & Life Sciences | $1.40 |
| MoonPay | 11/22/2021 | Financial Services | $3.40 |
| ReliaQuest | 12/1/2021 | Enterprise Tech | $1 |
| Jeeves | 3/14/2022 | Enterprise Tech | $2.10 |
| Yuga Labs | 3/22/2022 | Media & Entertainment | $4 |
| Genies | 4/12/2022 | Media & Entertainment | $1 |
| Material Bank | 5/6/2022 | Industrials | $1.90 |
| Cirkul | 6/13/2022 | Consumer & Retail | $1.07 |
| Headway | 10/5/2023 | Healthcare & Life Sciences | $1 |
| Company | Unicorn Date | Industry | Total ($B) |
|---|---|---|---|
| OneTrust | 7/11/2019 | Enterprise Tech | $4.50 |
| Greenlight | 9/24/2020 | Financial Services | $2.30 |
| Calendly | 1/26/2021 | Enterprise Tech | $3 |
| Flock Safety | 7/13/2021 | Consumer & Retail | $3.50 |
| FullStory | 8/4/2021 | Enterprise Tech | $1.80 |
| STORD | 9/13/2021 | Industrials | $1.30 |
| Company | Unicorn Date | Industry | Total ($B) |
|---|---|---|---|
| JumpCloud | 9/13/2021 | Enterprise Tech | $2.62 |
| Company | Unicorn Date | Industry | Total ($B) |
|---|---|---|---|
| Pendo | 10/17/2019 | Enterprise Tech | $2.60 |
| Locus Robotics | 2/17/2021 | Industrials | $1 |
| Printful | 5/24/2021 | Consumer & Retail | $1 |
| Aura | 6/9/2021 | Consumer & Retail | $2.50 |
| Oyster | 4/20/2022 | Enterprise Tech | $1 |
| JupiterOne | 6/2/2022 | Enterprise Tech | $1 |
| VulcanForms | 7/5/2022 | Industrials | $1 |
| Company | Unicorn Date | Industry | Total ($B) |
|---|---|---|---|
| Palmetto | 2/24/2022 | Industrials | $1 |
| Company | Unicorn Date | Industry | Total ($B) |
|---|---|---|---|
| Built | 9/30/2021 | Financial Services | $1.50 |
| CareBridge | 6/8/2022 | Healthcare & Life Sciences | $1 |
| Company | Unicorn Date | Industry | Total ($B) |
|---|---|---|---|
| ID.me | 3/19/2021 | Consumer & Retail | $1.50 |
| Expel | 11/18/2021 | Enterprise Tech | $1 |
| Somatus | 2/23/2022 | Healthcare & Life Sciences | $2.50 |
Methodology
The BIP Ventures State of Startups in the Southeast report provides a detailed, data-driven macro assessment of startup and investment trends across the states that comprise the Southeastern United States: Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee, and Virginia.
Beginning in 2017, we decided to customize data collected solely via a partnership with PitchBook Data, Inc. ("PitchBook"). The company constantly updates its data as new data becomes available. This up-to-date reflection of deal sizes and counts may result in inconsistencies with the deal count and capital invested data reported in past-year reports. Any differences reflect changes made by PitchBook. Reported data is subject to change at or after the time of publication.
BIP Ventures customizes the data pulled from PitchBook to develop specific quantitative snapshots of the Southeast and U.S. and accompanying trends. Throughout the research process, our team works directly with PitchBook Data, Inc. ("PitchBook") to confirm all data and corroborate sources, ensuring the accuracy of all numbers reported.
For the 2024 report, we have improved the accuracy of "Deal Counts & Funding" data by gathering the total deal counts rather than the number of companies that experienced deals during the research period.
Southeast and U.S. Trends research parameters:
- Deal Date: 01-Jan-2018 through 30-Jun-2024
- Deal Type: All VC Stages, excluding Grants
- Companies: Headquarters in a state in the Southeast [for comparison Headquarters in the U.S]
State-by-state Profiles & Ranking Tables research parameters:
- Deal Date: 01-Jan-2019 through 30-Jun-2024
- Deal Type: All VC Stages, excluding Grants
- Companies: Headquarters in a state in the Southeast [for comparison Headquarters in the U.S]
All trends, rankings, and insights reflect data through June 2024, focusing on Q3-4 2023 and Q1-Q2 2024. The first half of the report includes detailed comparisons of every year since 2018 to compare pre-pandemic venture and startup activity with current market indications. In the second half of the report, we include state-specific data since 2019, providing consistency with the five-and-a-half-year comparison window historically offered by the report.
Bibliography and Resources
- Q1, Q2 2024 PitchBook Data Inc.
- Understanding Private Credit, Morgan Stanley, June 2024
The State of Startups in the Southeast Team
Compilation and analyses for The State of Startups in the Southeast™ 2024 report was conducted by a team of experts across our firm.
- Mark Flickinger, BIP Capital General Partner and Chief Operating Officer, is one of the most established and innovative authorities in startup growth and investing.
- Rachelle Kuramoto, BIP Capital Vice President of Content, specializes in market intelligence and narrative that clarifies complex trends in the innovation space.
- Dana Vollkommer, Portfolio Reporting Manager for BIP Ventures, is a CPA and expert in data-based market insights.
About BIP Capital
BIP Capital is an integrated private market investment platform built to create and capture opportunities. We support exceptional advisors and deliver wealth preservation and growth opportunities for thousands of investors. Our private market investment platform offers traditional venture anchor funds through BIP Ventures, an Evergreen equity BDC, and private credit offerings. With a distinctive multi-stage, multi-sector investment approach and a growing array of capital offerings, BIP Capital has generated consistent benchmark-leading returns since 2009.
For more information, visit bipcapital.com and follow BIP Capital on LinkedIn @bipcapital.
About BIP Ventures
BIP Ventures, the North American-focused venture capital division of BIP Capital, is one of the Southeast's largest and most active VC firms. BIP Ventures partners with extraordinary founders to drive exceptional outcomes. Since 2007, BIP Ventures has invested in the success of B2B software and tech-enabled service businesses at all stages of maturity. In addition to capital, it supports entrepreneurs with access to infrastructure, acumen, and talent, resulting in category-leading companies.
For more information, visit bipventures.vc and follow BIP Ventures on LinkedIn, Instagram, or X @bipventures.
