The Southeast region is now home to more than 300 individual venture capital firms, according to data collected by Embarc collective and Build in SE‘s Southeast Capital Landscape Report, a directory of active investors in the region.
That number – 309 at the time of this publication – is up more than 30% in the past three years. This density centers around Georgia, Florida, and Tennessee, as Atlanta has 59 companies in the database, followed by Miami (40), Nashville (34), and Tampa (24).
While 123 companies are independent of the industry in terms of investment criteria, 85 invest specifically in healthcare and 110 focus on business or software startups.
Data captured in the report also suggests that over 40% of start-up VCs in Atlanta alone have a diverse management team or focus on investing in diverse founders, suggesting that access to capital is becoming more accessible. to founders who are generally under-represented.
Allie Felix, vice president of Platform at Embarc Collective, told Hypepotamus that this growth comes from a mix of local transplants and talent investing in the ecosystem.
Felix, herself from the Southeast who returned home after spending time in The Bay and New York, believes the ‘flywheel’ effect is starting to take hold in the region with the arrival of new talents and new investors in the region.
As ‘work from anywhere’ models have become the norm during the pandemic, companies across the country have moved southeast or opened additional offices in the region to capture the awe-inspiring. transaction flow from the region in recent years.
Bigger names in venture capital like Softbank, Founders Fund, Harlem Capital and General Catalyst have all opened offices in the region. These companies are already causing a sensation in the region; Softbank launched a A $ 100 million initiative invest in local Miami startups and General Catalyst has entered the Southeast market to seek to invest in CivicTech startups.
New direction, new growth
It’s no surprise that the Southeast has prompted out-of-town investors to relocate. But as the ecosystem of FinTech, MedTech, and B2B SaaS startups continues to grow in the region, it has helped the region retain graduates from top engineering schools like Georgia Tech, Duke, Virginia Tech, University of Miami. and the state of North Carolina.
This talent pool has ushered in a more diverse pool of founders, many of whom have entered the local venture capital world and are focused on investing in the local startup scene.
Companies that have closed their tours in recent years, such as Highlight, The world in business, Capital of collaboration, and The JumpFund – focus on a hyperlocal or hyperfocused investment thesis.
Founders are encouraged to view the list of potential investors in the region, and investors who are not yet listed are encouraged to add their business to the database here.
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Photo by Jesse Adair on Unsplash