Welcome to State of Startups in the Southeast 2025
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
In 2025, the Southeastern startup investment landscape continues to evolve and find its rhythm after years of economic swings. Collectively, the states in the Southeast outperformed many other regions in deal count and capital deployed. Individually, some states are normalizing to pre-pandemic deal levels, while others are accelerating past them with renewed momentum.
Alabama and Mississippi remain early-stage strongholds where incubators and accelerators drive most deal activity. Florida and North Carolina show signs of consistency in capital deployment, even as deal activity consolidates – a good indication of investor and startup maturation. Similarly, Georgia is experiencing a slowdown in deal count without a commensurate dip in capital deployed. Kentucky and Virginia are holding a reliable pace of early-stage venture funding activity. South Carolina and Tennessee continue upward trajectories, with healthy venture capital funding activity and deal volumes stabilizing.
Like many other markets, a small number of deals in the Southeast have attracted the largest percentage of capital. Across almost every state in the region, Information Technology is the dominant sector based on deal count and capital deployed. Several states continue to stand out for strong performance in Healthcare, Fintech, and B2C. Non-traditional funding sources like university systems, public-private partnerships, and corporate activity often buoy these investments.
What emerges from this state-by-state snapshot is a picture of a region that continues to adapt, build, and grow a resilient startup ecosystem, even amid capital constraints and economic recalibrations.
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
3,236
TOTAL number of investments since 2018
$17.7B
TOTAL dollars invested since 2018
244
Number of investments 2025 (FORECAST)
$1.5B
Dollars invested 2025 (FORECAST)
Deal activity has slid since the pandemic ‘bump’ of 2021-2022, with 2025 projections showing the most significant slowdown in the past seven years, putting deal counts below 2018. Overall capital deployment has remained generally steady since 2023, though still below pre-pandemic levels. Venture activity is generally strong, though – like most states in the region – the highest amount of activity is happening inside of incubators and accelerators, including corporate and university centers. Information Technology (including SaaS) dominates other sectors in terms of deal count and capital deployed, though Healthcare and Fintech remain important to the state’s Innovation Economy. Georgia is experiencing a slight slowdown but remains one of the Southeast’s most mature and diverse startup markets, with broad sector strength and capital access.
Georgia has not minted any new Unicorns since Stord in 2021. The state benefited from two significant exits in 2024: food science company CP Kelco and healthcare workforce management company QGenda, collectively worth $ 4.4B.
636
TOTAL number of investments since 2018
$2.5B
dollars invested since 2018
72
Number of investments 2025 (Forecast)
$1.1B
Dollars invested 2025 (Forecast)
Alabama continues to be a great state for pre-seed and seed-stage startups, with deals under $1M comprising around 60% of all activity. Incubators and Accelerators drive most of the funding, making over three times the number of deals as Venture funds. Case in point, gBETA, a seven-week free accelerator with locations across Alabama, has matched the total venture deal volume in the state. Like most states in the U.S., Information Technology is capturing the most capital and deals. In part, that is due to Fleetio’s $450M Series D, which brought the company’s total raise to $621M – over two-thirds of Alabama’s total IT investment since 2018. It’s worth noting that none of Fleetio’s backers are based in Alabama. Also notable, Alabama is one of the only states in the Southeast where B2C is in the top three sectors for invested capital and deals – at least in part because of the outsized number of pre-seed startups growing in incubators and accelerators.
As of YTD 2025, Alabama has no Unicorns listed since 2019 and no notable exits.
6,794
TOTAL number of investments since 2018
$40.3B
Total dollars invested since 2018
700
Number of investments 2025 (Forecast)
$4.5B
Dollars invested 2025 (FORECAST)
Florida is retaining its reputation as a reliable environment for launching and scaling startups, especially in the early stages. The state has experienced a slight but consistent slowdown in deal activity since 2023, though the capital being deployed has generally evened out to levels slightly above pre-pandemic ‘norms.’ The deal rate consolidation and consistent capital deployment signal that the state continues to be a healthy, maturing startup ecosystem. Fintech, which dominated the state’s activity until recently, no longer drives significant venture activity. Information Technology (which includes SaaS) dominates, with triple the deal count and significantly more capital than the other two top sectors – B2C and Healthcare, which was the top industry in 2024. Incubators and accelerators are doing the most deals by a wide margin. Miami has retained its reputation as a venture center in the Southeast.
Florida has not minted any new Unicorns since 2023 (Headway App). The state has had two significant exits in the past year: healthcare tech company CentralReach was acquired by Roper Technologies for $1,850M, and McKesson acquired Florida Cancer Specialists & Research Institute for $3,557M.
818
TOTAL number of investments since 2018
$1.8B
TOTAL dollars invested since 2018
66
Number of investments 2025 (FORECAST)
$219M
Dollars invested 2025 (FORECAST)
2025 stands to be a potential outlier in Kentucky, with fewer, larger deals characterizing the venture environment. Until this year, deal activity has held relatively steady since 2018, even as capital invested fluctuated on the same general ‘bell curve’ as other states through the pandemic. Compared with larger and more active states in the Southeast, the amount of capital put to work in the state remains comparatively modest. Most deals appear to be pre-seed or seed-sized. Keyhorse Capital is a standout example. The state’s most active venture fund, Keyhorse made 161 deals – more than all Incubators and Accelerators combined. Over 100 of those were under $1M. Information Technology is a top sector for funding and deal count, but lags behind Healthcare and Materials and Resources, due to a small number of large deals in those categories. Total capital invested is projected almost to double the amounts put to work in 2023 and 2024, despite a deal count that is half of what it was during that period.
Kentucky has not minted any new Unicorns since 2021 (JumpCloud). The state saw two IPOs in 2024, both in the Healthcare space: BrightSpring Health Services and Waystar Health.
162
TOTAL number of investments since 2018
$189M
TOTAL dollars invested since 2018
18
Number of investments 2025 (FORECAST)
$6M
Dollars invested 2025 (FORECAST)
Mississippi’s venture landscape is quiet and somewhat unpredictable. Funding events happen, but are isolated enough to skew venture activity trends. Unlike most Southeastern states, it didn’t follow the typical pandemic-era spike and ‘bell curve’ return to a 2018 ‘norm.’ Instead, activity dipped in 2021, rose unevenly through 2024, and is forecast to drop sharply in 2025. For example, the 2024 acquisition of Yak Access by United Rentals increased capital investment from $6M in 2023 to $33M in 2024. It is projected to fall back to $6M in 2025. Incubators and Accelerators drive the most activity in the state, with Mississippi State University leading the way. Most investors make only one deal, and nearly all are under $1M. Only about 25% of top-sector deals surpass that threshold. Deal counts remain in the single digits, and total invested capital between 2018 and 2025 (projected) has not brushed the billion-dollar mark.
In 2025 (YTD), Mississippi has not produced any Unicorns. In 2024, the state saw one sizeable acquisition – Yak Access (by United Rentals).
3,389
TOTAL number of investments since 2018
$26.1B
TOTAL dollars invested since 2018
362
Number of investments 2025 (FORECAST)
$3B
Dollars invested 2025 (FORECAST)
North Carolina’s startup ecosystem remains steady, with deal volume, capital deployment, deal sizes, and sector strength showing minimal volatility between 2018 and 2025, even during the pandemic spike. Capital and activity in 2025 are lagging a bit but remain generally in line with trends in the state, region, and nation – rising slightly above pre-2020 levels. All of this stability reflects a mature, reliable startup environment with long-term upside. Activity is somewhat consolidated, however. The Triangle Tweener Fund, led by General Partner Scot Wingo, accounts for 15% of deals statewide. Like many other active funding hubs, Information Technology (which includes SaaS) is capturing twice the amount of capital and significantly more deals than any other sector, including Healthcare, the next-most funded sector, and a core industry in the state.
In 2024, North Carolina has had one (1) $1B+ exit with the acquisition of Snap One (Conferencing Hardware) by Resideo Technologies. The state has not produced a new Unicorn since 2022.
699
TOTAL number of investments since 2018
$1.67B
TOTAL dollars invested since 2018
92
Number of investments 2025 (FORECAST)
$240M
Dollars invested 2025 (FORECAST)
South Carolina is a healthy venture capital market, with the top ten VCs generating twice as many deals as the leading incubators, angels, or government sources. Since 2018, the state has followed a uniquely steady growth pattern. Capital activity was up in 2021 and 2022, but deal volume has shown minimal volatility. The return to strength that took hold in 2024 appears to be continuing in 2025. Despite no massive outlier deals (i.e., unicorn IPOs or acquisitions) so far this year, 2025 is forecast to be one of the best since 2018. Healthcare and fintech remain resilient centers of innovation, but – as with nearly every other state in the region – Information Technology is garnering virtually twice the number of deals and capital as any other sector.
South Carolina has had no outlier deals so far in 2025. The last notable deal in the state took place in 2023, with Arko’s acquisition of Transit Energy Group. The state has not produced a Unicorn since 2022 (Palmetto).
1,719
TOTAL number of investments since 2018
$9.1B
TOTAL dollars invested since 2018
226
Number of investments 2025 (Forecast)
$1.5B
Dollars invested 2025 (Forecast)
The Innovation Economy is gaining momentum in Tennessee. Deal activity and capital amounts are rising steadily, outpacing the brief pandemic-era bump. Venture funds, Accelerators, and government programs have picked up their investment paces – some significantly in 2025. In particular, Launch Tennessee and the Nashville Entrepreneur Center have both nearly doubled deal volume year-over-year and surpassed the state’s top ten angels combined. Angel activity is the only funding category that remains limited, with most individuals making only a couple of deals. Healthcare remains a standout industry in the state – as evidenced by the $2.7B Elevance Health acquisition of CareBridge (which achieved Unicorn status in 2022). Nonetheless, Information Technology (including SaaS) outpaces Healthcare slightly in deal count. Total capital deployed dipped to $780M in FY2024 (from $2B in FY2023) but is projected to rebound to $1.5B in 2025—highlighting a return to growth and resilience for the state’s startups and investors.
CareBridge achieved Unicorn status in 2022. In 2024, Elevance Health acquired the company for $ 2.7 billion. No other outlier deals have happened since.
1,719
TOTAL number of investments since 2018
$9.1B
TOTAL dollars invested since 2018
226
Number of investments 2025 (Forecast)
$1.5B
Dollars invested 2025 (Forecast)
Virginia is among the Southeast’s most active venture environments, supported by strong accelerator, government, and institutional capital. The Virginia Innovation Partnership Corporation and iLab Incubator have accelerated their investment activities, and Virginia Venture Partners has outpaced the two combined, doing almost 200 deals between Q2 2024 and Q3 2025. Deal volume peaked in 2023 and has declined slightly since, including projected 2025, which is forecasted to stay just under pre-pandemic levels. Capital invested has not followed the same pattern. Investment amounts bumped up by approximately $1B in 2021 and remained at those levels with the exception of a slight dip in 2024. Forecasted capital deployment is back up to pandemic levels for 2025 – despite fewer deals, signaling a shift toward later-stage and higher-value deals. Information Technology (including SaaS) dominates funding activity, with twice the number of deals and twice the amount of funding as Healthcare, which has been a consistent innovation space for many years.
Top Industries (Deals & Capital 2018-YTD 2025)
Information Technology (includes SaaS) | $9.7B
Financial Services (includes Fintech) | $2B
Healthcare (includes Biotech/Pharma) | $2B
Information Technology (includes SaaS) | 1,381
Healthcare (includes Biotech/Pharma) | 544
B2B| 530
Total Deals (2018-YTD 2025) = 3,236
Total Investments (2018-YTD 2025) = $17.7B
Investment Leaders by Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
State-level Government & Non-Profit VC-Backed Funds
Top Industries (Deals & Capital 2018-YTD 2025)
Information Technology (including SaaS) | $917M
Healthcare (includes Biotech/Pharma) | $411M
B2C | $392M
Information Technology (including SaaS) | 215
Healthcare (includes Biotech/Pharma) | 151
B2C | 99
Total Deals & Investments (2018-YTD 2025) = 636
Total Investments (2018-YTD 2025) = $2.58B
Investment Leaders by Deals Completed
Venture Capital Funds
Angels Activity
Incubators & Accelerators
State-level Government & Non-profit VC-backed Funds
Top Industries (Deals & Capital 2018-YTD 2025)
Information Technology (including SaaS) | $17B
Healthcare (includes Biotech/Pharma) | $6.6B
B2C | $4.9B
Information Technology (including SaaS) | 2,725
B2C | 1,219
Healthcare (includes Biotech/Pharma) | 1,085
Total Deals (2018-YTD 2025) = 6,794
Total Investments (2018-YTD 2025) = $40.3B
Investment Leaders by Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
State-level Government & Non-Profit VC-Backed Funds
Top Industries (Deals & Capital 2018-YTD 2025)
Healthcare (includes Biotech/Pharma)| $492M
Materials and Resources | $480M
Information Technology (includes SaaS) | $235M
Information Technology (includes SaaS) | 244
B2C | 203
Healthcare | 154
Total Deals (2018-YTD 2025) = 818
Total Investments (2018-YTD 2025) = $1.8B
Investment Leaders by Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
State-level Government & Non-Profit VC-Backed Funds
Top Industries (Deals & Capital 2018-YTD 2025)
B2B | $94M
B2C | $28M
Healthcare (includes Biotech/Pharma)| $27M
B2C | 48
B2B | 38
Information Technology (includes SaaS) | 35
Total Deals (2018-YTD 2025) = 162
Total Investments (2018-YTD 2025) = $189M
Investment Leaders by Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
State-level Government & Non-Profit VC-Backed Funds
Top Industries (Deals & Capital 2018-YTD 2025)
Information Technology (includes SaaS) | $12.9B
Healthcare (includes Biotech/Pharma) | $6.6B
B2B | $1.8B
Information Technology (includes SaaS) | 1,097
Healthcare (includes Biotech/Pharma) | 887
B2C | 595
Total Deals and Investments
Investment Leaders by Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
State-level Government & Non-Profit VC-Backed Funds
Top Industries (Deals & Capital 2018-YTD 2025)
Information Technology (includes SaaS) | $530M
Fintech | $282M
Healthcare (includes Biotech/Pharma) | $273M
Information Technology (includes SaaS) | 245
B2C | 142
Healthcare (includes Biotech/Pharma) | 137
Total Deals (2018-YTD 2025) = 699
Total Investments (2018-YTD 2025) = $1.7B
Investment Leaders by Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
State-level Government & Non-Profit VC-Backed Funds
Top Industries (Deals & Capital 2018-YTD 2025)
Healthcare (includes Biotech/Pharma) | $4.5B
Information Technology (includes SaaS) | $1.7B
B2B | $1.1B
Information Technology (includes SaaS) | 488
Healthcare (includes Biotech/Pharma) | 479
B2C | 279
Total Deals (2018-YTD 2025) = 1,719
Total Investments (2018-YTD 2025) = $9.1B
Investment Leaders by Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
State-level Government & Non-Profit VC-Backed Funds
Top Industries (Deals & Capital 2018-YTD 2025)
Information Technology (includes SaaS) | $7.3B
Healthcare | $3.2B
B2B | $1.6B
Information Technology (includes SaaS) | 1,264
Healthcare (includes Biotech/Pharma) | 507
B2C | 428
Total Deals (2018-YTD 2025) = 2,933
Total Invested (2018-YTD 2025) = $15.7B
Investment Leaders by Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
State-level 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.
The State of Startups in the Southeast 2025 Summary Tables & Graphs
Southeast Top 10s
(January 1, 2018-June 30, 2025)
| Incubators / Accelerators | Deal Count | |
|---|---|---|
| 1 | Techstars | 458 |
| 2 | Plug and Play Tech Center | 220 |
| 3 | NC Idea | 196 |
| 4 | Y Combinator | 154 |
| 5 | CREATE-X* | 112 |
| 6 | Google for Startups | 112 |
| 7 | i.Lab Incubator* | 105 |
| 8 | Nashville Entrepreneur Center | 101 |
| 9 | Tampa Bay Wave* | 96 |
| 10 | gBETA | 88 |
*New to the rankings as of 2025.
| Angels | Deal Count | |
|---|---|---|
| 1 | VentureSouth | 85 |
| 2 | Keiretsu Forum | 66 |
| 3 | Charlottesville Angel Network | 52 |
| 4 | Miami Angels | 44 |
| 5 | Atlanta Technology Angels | 37 |
| 6 | Bluegrass Angels | 30 |
| 7 | CAV Angels | 30 |
| 8 | 757 Angels | 26 |
| 9 | IrishAngels | 25 |
| 10 | Mark Cuban | 21 |
*No new entities in the rankings for 2025.
| VC Funds | Deal Count | |
|---|---|---|
| 1 | Virginia Venture Partners | 200 |
| 2 | Triangle Tweener Fund | 165 |
| 3 | Keyhorse Capital* | 164 |
| 4 | Gaingels | 120 |
| 5 | Right Side Capital Management | 114 |
| 6 | Alumni Ventures | 107 |
| 7 | Florida Funders | 89 |
| 8 | Service Provider Capital | 81 |
| 9 | Tech Square Ventures | 80 |
| 10 | Andreessen Horowitz | 77 |
*New to the rankings as of 2025.
| Government-Backed Venture Investments | Deal Count | |
|---|---|---|
| 1 | U. S. National Science Foundation* | 92 |
| 2 | Launch Tennessee | 58 |
| 3 | Virginia Innovation Partnership Corporation* | 55 |
| 4 | Georgia Research Alliance | 54 |
| 5 | Georgia State University* | 31 |
| 6 | National Institutes of Health* | 28 |
| 7 | The Company Lab* | 20 |
| 8 | Bronze Valley | 17 |
| 9 | South Carolina Research Authority* | 17 |
| 10 | NC State Entrepreneurship* | 6 |
*New to the rankings tables as of 2025.
Total Deal Counts and Investments in the Southeast (Rank by Total $ Invested)
Notable Exits by State Since 2018
(January 1, 2018-June 30, 2025)
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 |
| CentralReach | Roper Technologies | 2025 | $1,850 |
| Florida Cancer Specialists & Research Institute | McKesson | 2025 | $3,557 |
| Company | Buyer | Year | Value ($ 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 |
| QGenda | Hearst Corporation | 2024 | $2,500 |
| Company | Buyer | Year | Value ($ 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 |
| Snap One | Resideo Technologies | 2024 | $1,405 |
| Company | Buyer | Year | Value ($ 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 |
| CareBridge | Elevance Health | 2024 | $2,700 |
| Company | Buyer | Year | Value ($ 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 |
| BlueHalo (Government) | Arlington Capital Partners | 2025 | $4,100 |
Southeastern Unicorns (January 1, 2018-June 30, 2025)
The Southeast has not added any new Unicorns since 2023, when the region gained Headway, a Florida-based Healthcare & Life Sciences company. Over the past two years, the Southeastern environment has become progressively less active, with respect to $1+ Billion deals. The trend could indicate a slower and more careful funding environment regionally, as well as a dearth of massive AI deals, which are primarily responsible for the rising Unicorn count nationally.
| Company | Unicorn Date | Industry | Total ($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 |
| Florida Total | $22.07 |
| Company | Unicorn Date | Industry | Total ($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 |
| Georgia Total | $16.4 |
| Company | Unicorn Date | Industry | Total ($B) |
|---|---|---|---|
| JumpCloud | 9/13/2021 | Enterprise Tech | $2.62 |
| Kentucky Total | $2.62 |
| Company | Unicorn Date | Industry | Total ($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 |
| North Carolina Total | $10.1 |
| Company | Unicorn Date | Industry | Total ($B) |
|---|---|---|---|
| Palmetto | 2/24/2022 | Industrials | $1 |
| South Carolina Total | $1 |
| Company | Unicorn Date | Industry | Total ($B) |
|---|---|---|---|
| Built | 9/30/2021 | Financial Services | $1.50 |
| CareBridge | 6/8/2022 | Healthcare & Life Sciences | $1 |
| Tennessee Total | $2.5 |
| Company | Unicorn Date | Industry | Total ($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 |
| Virginia Total | $5 |
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.
Sector Breakdown
B2C
- Retail & E-commerce
- Consumer Products & Services
- Hospitality & Leisure
- Media & Entertainment
- Consumer Health & Wellness
- FinTech (Consumer-Facing)
B2B
- Enterprise Software Providers
- IT Services Firms
- Industrial Equipment Manufacturers
- Wholesalers
- Marketing Platforms / Marketing as a Service
Energy
- Oil & Gas
- Power Generation & Utilities
- Renewable & Alternative Energy
- Energy Equipment & Services
- Energy Infrastructure & Transmission
- Emerging Energy Tech
Financial Services
- Banking (Commercial Banks, Investment Banks, Neobanks)
- Insurance (Life, Health, Property & Casualty, Insurtech)
- Lending & Credit (Consumer Loans, Commercial Lending, Alternative Finance)
- Asset & Wealth Management (Investment Advisors, Private Wealth Management, Family Offices)
- Payment Processing & Networks (Merchant Services, Payment Gateways)
- Brokerage & Trading Platforms
- Fintech
Healthcare
- Healthcare Providers & Services
- Pharmaceuticals & Biotechnology
- Medical Devices & Supplies
- Healthcare IT
- Other Health-Related Services
Info Tech
- Software (Saas, Enterprise Software, Vertical-Specific Software)
- IT Services (Consulting, Systems Integration, Managed Services)
- Hardware (Computers, Peripherals, Data Center Equipment)
- Healthcare Semiconductors & Components
- Cybersecurity Solutions
- Cloud Infrastructure Providers
- Networking & Communications Equipment
- Data Analytics & AI Platforms
*AI falls here if its primary use case is InfoTech; otherwise, it’s categorized with its industry.
Materials and Resources: Forestry, Paper & Wood Products
- Logging
- Pulp and paper production
- Lumber and wood processing
Materials and Resources: Mining & Metals
- Mineral Extraction (Gold, Copper, Rare Earths, etc.)
- Metal Refining, Smelting, Fabrication
Materials and Resources: Chemicals & Plastics
- Commodity Chemicals
- Specialty Chemicals
- Industrial Gases
- Plastics & Resins
Materials and Resources: Construction Materials
- Cement, Concrete, Asphalt
- Glass, Ceramics, Bricks
Materials and Resources: Agricultural Inputs
- Fertilizers
- Seeds
- Crop Protection Chemicals
Bibliography and Resources
- Q3, Q4 2024 and Q1, Q2 2025 PitchBook Data Inc.
- Primary: CB Insights Company Tracker Data
- Secondary: State of Venture Report, Global Q2 2025 [CB Insights]
- Secondary: PitchBook-NVCA Venture Monitor Q3 2024 (PDF)
- Secondary: PitchBook-NVCA Venture Monitor Q4 2024 (PDF)
- Secondary: PitchBook-NVCA Venture Monitor Q1 2025 (PDF)
- Secondary: PitchBook-NVCA Venture Monitor Q2 2025 (PDF)
- Secondary: Inside.com Seed-to-Series A Report
- Secondary: 2024 U.S. Funding Summary [Crunchbase]
- Secondary: The AI gold rush is hiding a wider cash crunch for startups [PitchBook]
- Secondary: Early-stage VC valuations are more reasonable than they appear [PitchBook]
- Secondary: Accelerating Entrepreneurship in Atlanta (BCG)
- Secondary: 2025 Midyear Update Report [PitchBook]
- Secondary: 2025 Midyear Update Webinar & Presentation [PitchBook]
The State of Startups in the Southeast Team
Compilation and analyses for The State of Startups in the Southeast™ 2025 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 Senior Vice President of Brand & Content, specializes in market intelligence and narrative that clarifies complex trends in the innovation space.
- Dana Vollkommer, Portfolio Reporting Manager for the BIP Ventures Performance Engineering team, is a CPA and expert in data-based market insights.
About BIP Capital
BIP Capital is an integrated private market investment firm that offers traditional venture anchor funds through BIP Ventures, an evergreen equity BDC through the BIP Ventures Evergreen BDC, and access to LAGO Evergreen Credit, a private credit BDC, through partnership with LAGO Asset Management. With a distinctive multi-stage, multi-sector investment approach and a diversified platform of capital offerings, we support advisors and deliver wealth preservation and growth opportunities for thousands of investors.
Visit bipcapital.com and connect with BIP Capital on LinkedIn @bipcapital.
About BIP Ventures
BIP Ventures is a highly active venture capital firm in the Southeast, purpose-built to support a durable, multi-stage investment strategy that reduces the frictions that can drag on performance while creating value for our founders and those who invest with us. Our mission to identify and capture extraordinary opportunities for the people we serve.
Visit bipventures.vc and connect with BIP Ventures on LinkedIn @bipventures.
