Welcome to State of StartupsSM in the Southeast 2025
Stability, discipline, and concentration are defining themes of the Southeastern venture ecosystem in 2025. The 'return to norm' that began in 2024 has continued into 2025, putting deal activity, aggregate capital amounts, and valuations on a steady, slightly upward trend.
While the Southeast consistently accounts for 10-12% of U.S. capital invested and 9-10% of deals, the region historically has not chased hype cycles. No state in the Southeast has minted a unicorn since 2003, despite the rise in new $1B+ businesses since 2023 nationally. 1 Southeast venture discipline is high and focused on creating continuity for proven companies. Conversely, between Q3 2024 and Q2 2025 (the period tracked in this report), investors in the Bay Area and Northeast deployed 76.7% of all capital into half of the total U.S. deal counts. 2 The mere size of deals has concentrated venture activity in these “super-hubs.”
Not surprisingly, almost all venture activity in 2024-2025 has focused on AI businesses. A small number of pure-play AI businesses have captured mega-deals ($100B+) from the coastal venture hubs. Still, most funding activity is directed at startups using AI to build structural advantages. That is the case in the Southeast, where embedded AI has become an expectation for investment – concentrating capital into businesses and sectors most successfully using AI to transform operations, products, and value propositions.
Despite the notably disciplined investment ethos, Southeast deal cycles closely mirror national patterns. Between 2018 and 2025(forecast), the venture economy follows an almost perfect bell curve – steady before a peak in 2021, a correction in 2023 and 2024, and a return to stability in 2025. Capital deployment is now modestly above pre-pandemic norms, despite some compression in deal counts.
The trend reflects consolidation among capital sources and continued prioritization of the strongest companies. Valuations are rational, funding is selective, and investors are writing checks with a disciplined view of long-term resilience. 3
The key takeaway of the State of StartupsSM in the Southeast 2025 report is this: the Innovation Economy is showing signs of health. It's also showing signs of bifurcation between the region and other venture hubs, and between businesses with AI and without. Investor discipline is high. New entrants face high barriers. But great businesses continue to capture funding. The difference is that the demand to prove their market and model continues to rise.
Highlights
-6%
$7.1B was deployed across the Southeast in the first half of 2025 – down 6% from $7.6B in 2H 2024, but still above 2023 activity.
+33%
The $7.1B capital deployed in the first half of 2025 represents a 33% year-over-year rise over the first half of 2024.
45%
The $6.8M average check size in 2025 (YTD) has risen 45% over the average investment in 2018, which hovered around $4.7M.
23%
The amount of capital deployment projected for full-year 2025 is $12B – 23% higher than the $9.8B deployed during 2018.
Deals and Dollars
The Southeast VC market is showing signs of stabilization and a genuine return to pre-pandemic norms.4 have settled back into levels consistent with 2018-2019, after the spike of 2021-2022 and correction period between 2023 and 2024. The funding activity indicates the market is neither overheated nor stagnant. Rather, it shows the venture market is prioritizing rational, measured pricing and valuation decisions.
Mega-deals remain rare in the region, especially compared with the Bay Area, New York, and Boston.5 Instead, investors are putting capital to work in companies that demonstrate resilience, strong fundamentals, and sector alignment.
The (slight) gap between capital deployed and funding activity in this cycle indicates some deal compression – fewer transactions, but with larger check sizes. Southeastern investors continue to take a disciplined, rigorous approach. More capital is being invested via follow-on rounds into established, maturing companies already in their portfolios rather than dispersing investments across large numbers of new, unproven entrants. In the first half of 2025, the Southeast recorded $7.1 billion in venture investment, down 6% from the back half of 2024 but still 33% higher year-over-year. Average check size reached $6.8 million, a 45% increase over 2018. The full year is projected at $12 billion, more than 23% higher than the 2018 baseline.6
The Southeast innovation environment has neither lost ground nor accelerated. It has reset back to its pre-pandemic ‘norms’ and is moving forward with clear evidence of having learned from the outlier years. Great businesses are still being funded, but investments now come with higher expectations and are rooted in business fundamentals. In short, Southeastern venture funds are not backing ideas. They are advancing sustainable businesses. Investor selectiveness has created deal compression and a supply-demand imbalance for founders. It’s a chance for investors to access resilient companies at rational prices – even as competition for allocations into the best businesses is fierce. For solid, proven businesses already growing nicely within a healthy fund portfolio, scale is contingent on continuing to meet a high “quality imperative.” For seed-stage companies not yet funded, the environment may make it harder to secure initial funding or to graduate from Seed to Series A without solid proof of a market, path to growth, and AI.
Southest VC Deal Count and Total Investments (2018-2025f)
Key Takeaway
The Southeast venture market hasreset to stable pre-pandemic ‘norms,’ and a pervasive sense of discipline andsecurity is positioning the region for sustainable progress. The guidingsensibility is evident in the data: check sizes are growing while deal countscompress, and most capital is flowing into follow-on rounds for companies withdurable models and established markets. For founders, this means raisingcapital requires more than a great idea – it requires proof of traction,efficiency, and resilience. For investors, the environment creates anopportunity to access strong companies at rational valuations, thoughcompetition for allocations into the best deals is intensifying. The Southeasthas matured into a competitive venture environment where strong fundamentalsare prioritized, and discipline is the default.
Implication for Founders
Especially for early-stage founders, the bar for funding is higher but not insurmountable. Investors are backing companies that can demonstrate disciplined fundamentals from the outset: capital-efficient growth, validated customer demand, strong gross margins, and a clear path to profitability. The most successful seed-stage companies in the Southeast are entering with proven product-market fit in durable verticals such as Information Technology (vertical SaaS, AI-enabled platforms), Healthcare Tech, business enablement, and Financial Services infrastructure. Founders who pair disciplined execution with realistic capital planning are the ones breaking through the “quality imperative.” In short, investors are not currently funding ideas. They are funding the evidence of resilience.
Implication for Investors
For investors, deal counts have stabilized while capital is flowing into fewer, larger rounds. Much of that activity is concentrated into follow-on funding for more mature, proven portfolio companies at disciplined but firm valuations. Opportunities exist for investors willing to lead earlier-stage rounds at rational pricing, but the dynamic underscores the need for rigorous underwriting of exit pathways and capital efficiency. Entry valuations have moderated from the 2021-2022 peak, but exit timelines are lengthening as companies prioritize profitability before liquidity. The best opportunities in the Southeast remain accessible, but capturing them requires conviction, speed, and a willingness to compete for allocations in the highest-quality companies.
Sector Shifts: Who's Got the Juice?
Venture activity in the Southeast is generally characterized by stability, deploying a steady volume of capital into a consistent number of companies, with average check sizes holding firm. The meaningful shift is seen more in the sectors attracting the investments. AI is the dominant driver of the changes, not as a standalone sector but as a capability embedded across verticals.
Sectors that have natively adopted AI are capturing the largest share of capital, whereas startups that fail to integrate AI into their strategy are finding fundraising more difficult, with longer timelines and pressure on valuations.
Sector Trends
Information Technology: AI as Default Infrastructure
Information Technology leads the venture market (deals and funding). The sector has grown steadily since 2023, fueled by enterprise enablement, AI infrastructure, and developer tooling. Venture potential remains strong as AI becomes the baseline for enterprise platforms. Investor appetite remains strong for IT solutions that drive automation and productivity gains across back-end infrastructure, data management, and workflow optimization.
Healthcare: Durable Growth Engine
Healthcare is the growth engine of venture activity in the Southeast and projections show deal activity rivaling IT in 2025. Deal activity surged during the pandemic, stabilized in 2023 and 2024, and remains on an upward trajectory in 2025. Systemic platforms in diagnostics and care operations are expected to scale, delivering high VC upside. AI is an accelerant, particularly in diagnostics, patient monitoring, and drug discovery. Generalist VCs are increasingly drawn to healthcare because AI enhances efficiencies and scalability, while specialist investors remain committed due to non-cyclical demographic realities and regulatory forces.
Business Products and Services (B2B): Regional Strength
Business Products and Services (B2B) has proven resilient through downturns and driving expansion in vertical SaaS, logistics, and infrastructure. The sector steadily captures 15-20% of deal count. B2B strength is expected to endure, with vertical SaaS, logistics, and industrial platforms continuing to deliver high VC upside. The next wave of growth is expected from AI-driven ‘productivity layers’ that augment sales, operations, and workflow management.
Consumer Products and Services (B2C): Niche Opportunities
Consumer Products and Services (B2C) is another active contributor to funding in the Southeast, consistently capturing approximately 14% of deal counts. Check sizes tend to be smaller than Business Products and Services (B2B). Much of the funding is coming in relatively small allocations from accelerators and incubators rather than large VC allocations. Much of the funding is coming in relatively small allocations from accelerators and incubators rather than large VC allocations. As consumer demand softens, the sector is experiencing a gradual decline in capital share. The strongest opportunities are concentrated in niche verticals like health, wellness, and education.
Financial Services: From Hype to Utility
Financial Services, especially fintech, have cooled and become more selective after spiking in 2022. Capital is concentrating on infrastructure plays in compliance, payments, and fraud detection. Moderate venture upside is emerging in “Fintech 2.0” – AI-driven compliance, fraud detection, and wealth management services, reflecting a shift from disruption to embedded functionality.
Energy: Small and Steady
Energy maintains a small but steady presence, with minimal total funding but steady deal activity. While AI has a role in business optimization, it has less of an impact on the companies in the sectors attracting investments, as most of the capital is flowing to hardware innovations like renewables, grid modernization, and storage.
Materials and Resources: Targeted and Strategic
Materials and Resources has remained the smallest sector in the Southeast, but its growth is strategic as manufacturing demand and industrial digitization rise. Investors are targeting industrial tech, cleantech, and supply chain improvements, rather than anything AI-enabled.
Capital Invested By Sector (2018-2025f)
Key Takeaway
No longer a ‘picks and shovels’ playor standalone sector, AI has moved from optional to essential in the Southeast.Moreover, most investors in the region are carefully underwriting to separateAI fundamentals from hype, deploying capital into sectors that demonstrate howeffective AI integration drives durable growth. While the industry leaders haveshifted slightly since 2023, Information Technology, Healthcare, and Business(B2B) platforms stand out as growth engines for the region.
Implication for Founders
Founders must design their companies with AI embedded from the outset. Competitive advantage will come from how well AI drives measurable efficiency, accuracy, or revenue generation. Enterprise enablement, healthcare platforms, and industrial SaaS remain strong verticals for scaling. In consumer sectors, differentiation will hinge on targeting narrow, high-value niches rather than broad markets.
Implication for Investors
Investors should continue to underwrite for long-term sector durability, prioritizing IT, Business Products and Services (B2B), and Healthcare as core growth engines in the Southeast. AI-driven enablement layers present opportunities across verticals, but they require careful diligence to separate signal from noise. Consumer and fintech require greater selectivity and realistic expectations, while Energy and Materials offer targeted upside tied to industrial and infrastructure shifts. The region’s diversification across these sectors mitigates risk, but disciplined underwriting around AI integration and sector fundamentals will define top-quartile outcomes.
AI is Eating the World.
“…the underlying intrinsic value of the best of Silicon Valley’s new companies. My own theory is that we are in the middle of a dramatic and broad technological and economic shift in which software companies are poised to take over large swathes of the economy…More and more major businesses and industries are being run on software and delivered as online services… Software is also eating much of the value chain of industries that are widely viewed as primarily existing in the physical world… Companies in every industry need to assume that a software revolution is coming.
(Marc Andreessen, ‘Software is Eating the World,’ 2011)
In a Wall Street Journal article in August 2011, notable venture capitalist Marc Andressen shared his thesis that “software is eating the world.” The economy was emerging from the global financial crisis. People were skeptical about valuations and the sustainability of massive new startups (e.g., Facebook). Andressen argued that the massive valuations of software companies reflected their real, intrinsic value as the usher of a profound and sweeping technological shift.
In 2025, that same argument can again be made – swapping “AI” for “software.” Since late 2022 (the first consumer-facing use of ChatGPT), AI has become nearly as ubiquitous as the Internet.
Across the U.S., AI startup funding accounted for more than 30% of VC funding and Series A rounds in Q1 2025.7 AI-focused companies drove an outsized portion of venture funding, and AI deals have continued to fuel check-writing momentum in 2025.
While it is a core operational tool that has transformed how products are built and businesses are run (among countless other activities), pure-play AI companies have not yet catalyzed step-change deal activity or valuations in the Southeast. VCs investing in the Southeast are interested in “AI + [sector]” pitches that offer a scalability story that includes AI as part of a solution rather than pitches that sell AI potential or hype.
Southeast Investment Behaviors:
Margins Have Meaning
Across the U.S., every region experienced record-setting capital deployment and valuation activity in 2021-2022, followed by a sharp correction in 2023. The Southeast followed the same boom-bust pattern, but with more measured swings due to a comparably moderate approach to deploying capital. As deal activity recovers, check sizes are rising and deal counts are declining at slight but consistent rates.8 Post-money valuations have rebounded to multi-year highs, exceeding capital invested across the board.
The data highlight a consistent theme: venture in the Southeast trails national investment activity by several months, absorbs the lessons, and proceeds with information and discipline. This cadence has enabled startups to pursue funding at a more deliberate pace and has positioned investors to be more rigorous and milestone-based in their follow-on funding activity.
Recovery is evident across capital invested, deal counts, and valuations. The compression in deal counts is a sign that investors are reserving funding for higher-quality and more mature companies. Mean post-money valuations now exceed both capital invested and deal count trends – a first since BIP Ventures began to track the State of Startups in 2018. The result is a market that places a premium on companies with clear fundamentals, proven efficiency, and strong prospects for profitable growth.
For founders, this environment means higher expectations at every stage of fundraising. For investors, it creates attractive entry points into resilient companies, but with longer timelines to liquidity.
Capital & Post-Money Valuation (SE vs U.S.)
Southeast - Post Money Compared to Capital Invested
U.S. - Post Money Compared to Capital Invested
$13.3M
Average Check Size (U.S.)
$6.8M
Average Check Size (Southeast)
$352.8M
Post-Money Average Value (U.S.)
$159.1M
Post-Money Average Value (Southeast)
Key Takeaway
The Southeast venture market has rebounded in step with national trends, but its character remains distinctly measured. Deal counts are compressing even as valuations climb back to multi-year highs, underscoring that capital is being reserved for proven companies with strong business fundamentals and market demand. For founders, this translates to higher expectations at every stage. Capturing funding requires disciplined growth, validated customer demand, and strong gross margins. Capturing attractive entry points into resilient companies at rational valuations requires investors to accept extended exit timelines. The Southeast has matured into a deliberate, selective, and fundamentals-driven market where margins matter.
Implication for Founders
The Southeast is maturing as an innovation market, marked by stable capital flows and attractive deal dynamics. Capital has rebounded to near-2021 highs, but investors are more selective, reserving funding for only the strongest companies. Founders who lean into local advantages or build strong remote investor relationships are better positioned to secure funding. Success often requires balancing runway needs with realistic growth projections: raising smaller, well-timed rounds, demonstrating measurable progress, and repricing upward over time. Mega-rounds remain concentrated on the coasts, but the Southeast offers larger checks and higher valuations than most other regions. The bar is high, but for startups that clear it, the region represents stability and opportunity.
Implication for Investors
For strategic investors, the Southeast offers resilient companies at attractive entry points, compared with coastal hubs. Valuations have rebounded to near-peak levels, while deal activity remains concentrated. Success requires discipline: underwriting the long-term path to exit, stress-testing revenue and cash-burn models, and verifying go-to-market assumptions before agreeing to elevated pre-money valuations. The result is a market where patient, rigorous investors can access strong companies on favorable terms.
Care and Consolidation
Capital Invested by Stage Cohorts (% Share)
2018-2019
Capital invested in the Southeast was fairly evenly distributed across every stage from Seed through D+ rounds.
2020-2021
As money flooded the market, seasoned investors were forced to move earlier in the company lifecycle to deploy capital. In the Southeast, this meant more Series A and Seed investments, with less late-stage capital deployments.
2022-2023
Even as the market began to go through a reset as interest rates rose, capital continued to shift to earlier stage companies, reaching over 50% of invested dollars in 2023.
2024-2025
As raised capital sources dry up, Southeast investment focuses on more mature businesses, pushing late-stage investment levels back to percentages not seen since 2019.
From 2018 through 2025, the venture cycle in the Southeast has mirrored the broader U.S. market while retaining its distinct identity. The past eight years reveal a clear arc that reflects a broader return to normalcy. Deal counts and capital activity in 2025 look much like they did in 2018 and 2019. Investors are balancing deployment of capital across early-, mid-, and late-stage companies, similar to the approach that characterized 2018 and 2019.
With the current investor focus, dollars are clustering. Fewer deals are being done, but great businesses continue to be funded. The selective, performance-aligned investment style of the Southeast works well in this environment. Founders who receive funding are finding room to operate and find success without the pressure of achieving an often-unattainable valuation.
Relative to the past couple of years, fewer first-time investments are happening in 2025. Instead, more follow-on investments are being made to extend the growth of existing portfolio companies. Investing in ‘known’ portfolio companies is as much a survival strategy for venture firms as it is for the companies they are funding. As capital has become harder to raise, funds are being judicious with dry powder, backing businesses that they know well, moving them toward exit, and creating liquidity opportunities for their investors.
A ‘flight to quality’ has rationalized new logo investing. In 2025, fewer first-time checks are being written than in the past couple of years. Many emerging startups are raising smaller rounds at lower valuations and being asked to do more with them. All portfolio companies are expected to show traction and revenue sooner and to operate in a more capital-efficient manner. Some startups are opting to raise additional funds at a reduced valuation from previous rounds of financing or as an extension of the prior round.
The high expectations and capital shortage are leading more startups to seek alternative financing. Venture debt, private credit, and Evergreen capital structures are filling the needs. Perpetual models, particularly Evergreen Funds and BDCs, have gained popularity, building and extending capital options for founders while opening access to the private markets for more investors.
The trend of prioritizing late-stage companies is not an exact replay of 2018 and 2019. Today, it represents a commitment to companies seeded during the 2020-2021 boom. Southeast investors are concentrating on known businesses that are most likely to deliver successful outcomes, focusing their efforts on increasing their probability of success.
Key Takeaway
The Southeast venture market in 2025 reflects a cycle of consolidation and pragmatism. Fewer first-time checks are being written, as more capital is being directed into follow-on rounds for companies seeded during the 2020-2021 boom. For founders, the environment means higher hurdles at the early stage, with traction, capital efficiency, and AI integration required to attract funding. For investors, the emphasis has shifted to preserving portfolio strength, extending runway for proven companies, and using perpetual capital and credit structures as complements to equity. The defining feature of this cycle is durability over acceleration. Funding is concentrated on positioning the strongest businesses for eventual exit.
Implication for Founders
The companies seeded during 2020 and 2021 now anchor Southeast venture activity. Many of the founders who proved their quality and resilience during the 2022-2023 correction and integrated AI into their models have attracted larger late-stage rounds in 2024 and 2025. Intense competition for early-stage capital is pressuring founders to demonstrate traction quickly and plan carefully for follow-on rounds. Across all stages, strong metrics are non-negotiable. Prospective and current investors expect AI integration, strong unit economics, proven product-market fit, and the ability to scale.
Implication for Investors
The Southeast’s current funding cycle is a continuation of the 2020-2021 vintage. After sustaining those companies through the downturn, investors are channeling capital into the strongest performers, driving outcomes through discipline. A valuation gap remains relative to coastal hubs, creating opportunities for investors to access proven companies at lower valuations. Perpetual capital vehicles and alternative financing have become important complements to equity funding, expanding optionality for companies and investors. The defining advantage now lies in conviction and discipline: investors who back resilient businesses at rational entry points are best positioned to benefit from the next liquidity cycle.
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
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
Angels
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
Angels
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
Angels
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
Angels
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
Angels
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
Angels
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
Angels
Incubators & Accelerators
State-level Government & Non-Profit VC-Backed Funds
Conclusion and Methodology
Venture and startup activity between July 2024 and July 2025 confirms that the Southeast remains a notably stable, selective, and influential presence in the U.S. innovation economy.
Capital has firmly reset to pre-pandemic norms, with steady progress visible since 2018, outside of the pandemic-era capital anomaly. Two defining shifts emerged over the past year: AI has become an embedded capability that determines which sectors capture the most deals and dollars, and investors are allocating less capital to new, early-stage startups and more to follow-on rounds for proven companies with disciplined valuations.
The big story is sustainability. Venture funds are concentrating healthy amounts of capital via fewer transactions, prioritizing funding for businesses that have already demonstrated resilience, efficiency, and market traction. For investors, this creates access to companies at rational entry points and reduces exposure to speculative bets. For founders, it means the bar has risen: early-stage fundraising is more difficult, while established startups with great models and proven markets are benefiting from deeper support.
The result is a Southeastern ecosystem defined by rigor, steadiness, and maturing strength, making it an innovation economy positioned to grow on durable foundations.
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 Data, Inc. ("PitchBook") to develop specific quantitative snapshots of the Southeast and the U.S. and accompanying trends. Throughout the research process, our team works directly with PitchBook to confirm all data and corroborate sources, ensuring the accuracy of all numbers reported. Other secondary reports are included to provide additional context, verification, and depth.
All trends, rankings, and insights reflect data through June 2025, focusing on Q3-4 2024 and Q1-Q2 2025. The first half of the report includes detailed comparisons of every year since 2018, comparing pre-pandemic venture and startup activity with current market indicators.
Southeast Ranking Tables
Deal Info by State by Year (YTD/Annualized)
Deal Info by State by Industry (January 1, 2018-June 30, 2025)
Sector Breakdown
Business Products and Services (B2B)
- Enterprise software providers (e.g., Salesforce, Slack)
- IT Services Firms
- Industrial Equipment Manufacturers
- Wholesalers
- Marketing Platforms / Marketing as a Service
Consumer Products and Services (B2C)
Energy
Financial Services
Healthcare
Info Tech
Materials and Resources Mining & Metals
Forestry, Paper & Wood Products
Chemicals & Plastics
Construction Materials
Agricultural Inputs
Bibliography and Resources
- Primary: Q3, Q4 2024 and Q1, Q2 2025 PitchBook Data Inc.
- Primary: CB Insights Company Tracker Data
- 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: Crunchbase 2024 U.S. Funding Summary
- Secondary: PitchBook - AI Gold Rush Article
- Secondary: PitchBook - Early-Stage VC Valuations
- Secondary: Accelerating Entrepreneurship in Atlanta (BCG PDF)
- Secondary: PitchBook 2025 Midyear Update (Report)
- Secondary: PitchBook 2025 Midyear Update (Webinar & Presentation)
- Secondary: PitchBook H1 2025 VC Tech Survey
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.
