Southeast Capital Landscape Report 2024

The Most Comprehensive Investor Database in the Southeast

Build In SE and Embarc Collective are thrilled to present an updated report on investor growth trends in the Southeast. This analysis spans ten states: Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, and West Virginia.

Since launching the Southeast Capital Landscape in 2019, our mission has been to democratize access to capital by providing visibility for:

1. Startups seeking active and lead investors
2. Talent looking to build a career in Southeast-based investing
3. Relationship-building among Southeast-based and non-local co-investors interested in the region

View the 2024 Southeast Capital Landscape Here

Our Findings

Surge in New Firm Creation

Since our last report in 2021, the Southeast has seen a 38% surge in new firm creation, more than doubling the number of firms since the report’s inception in 2019. There are now over 388 firms actively investing across stages from pre-seed to pre-IPO. Notably, the past three years have brought over 100 new firms to the region, with growth concentrated in:

• Florida: Leading with 99 venture firms across 18 cities, a 25.3% increase from its previous 79 firms in 11 cities
• Georgia: Up 22.8%, now at 70 firms across the state
• Tennessee: A dramatic rise of 75.6%, from 41 to 72 firms

Continued Tech Migration Boosts Southeast

The influx of tech companies and talent to the Southeast from traditional hubs like Silicon Valley and New York has gained momentum, accelerated by the pandemic and the rise of remote work. This shift has brought:

• New Players: Established firms like Edison Partners, PivotNorth Capital, and Company Ventures have expanded to the Southeast in addition to newly minted firms including Govo Venture Partners ($50M Fund), Ani.vc ($35M Fund), and Chattanooga-based Brickyard.
• State Support: The State Small Business Credit Initiative (SSBCI) 2.0 has fueled growth in state-backed investment funds, supporting startups from Pre-Seed to Series B.
  Key programs include:
  • LG NOVA West Virginia ($700M)
  • Virginia Venture Partners ($173M)
  • Florida Opportunity Fund ($150M)
  • InvestTN ($70M)
  • Innovate Alabama ($25M)
  • Keyhorse Capital (multitude of funds)
• Startup Leaders: The region is also benefiting from tech talent relocation, bringing unique experiences, networks, and extensive resources that will have a long-term impact on local communities. The increased operational expertise can lead to a significant growth opportunity for Southeast-based startups.

The Startup Flywheel is Spinning

Successful startups fuel ecosystems by reinvesting financial and human capital into new ventures, creating a self-perpetuating cycle of growth. Silicon Valley’s “Paypal Mafia” is a prime example, where one big exit sparked a wave of entrepreneurship and capital to re-invest.

The Southeast is starting to see this flywheel effect take place, driven by talent emerging from major exits. For example, after Alphabet acquired Mandiant (Reston, VA) in 2022, its CEO co-founded a cyber-security-focused venture firm. IBM’s $34B acquisition of Red Hat (Raleigh, NC) in 2019 led to the creation of another Southeast unicorn, Pendo, co-founded by early Red Hat engineers. Similarly, the founders of Stax (Orlando, FL), which raised $245M of growth capital in 2022, went on to launch a new startup Worth AI in 2024.

As more unicorns emerge—such as Epic Games (Cary, NC) and Flock Safety (Atlanta, GA)—they are poised to generate significant returns for our communities, even becoming acquirers of emerging startups themselves, as seen with Calendly’s (Atlanta, GA) purchase of Prelude and ReliaQuest’s (Tampa, FL) acquisition of Digital Shadows. The Southeast’s tech community is gaining serious momentum that will undoubtedly change the startup landscape in the years to come.

Share the Southeast Capital Landscape

• Founders: Tap into the largest open-source database of active angel networks, VC firms, and PE providers in the Southeast to build your investor pipeline and find leads for your next raise.
• Investors: Ensure your firm is represented by updating your information via our submission form. Your input is vital to shaping the Southeast’s tech ecosystem and helping founders navigate the funding landscape.

View the Southeast Capital Landscape Here

MEET THE COLLABORATORS

Collaboration, as demonstrated through this project, is vital for the Southeast to become a vibrant destination to grow and retain more high-value companies. Here are the organizations that helped make this report a reality:

BUILD IN SE

Build In SE is a Nashville-based Benefit Corporation building a collaborative network of startup founders, funders, and ecosystem supporters across the Southeast. Our mission is to increase the number of startup success stories by building regional intelligence, bringing together capital, events, and research for founders choosing to #BuildInSE. To learn more and get involved, visit buildinse.com.

EMBARC COLLECTIVE

Embarc Collective is a world-class entrepreneurship hub and a central landing zone for Florida’s most driven and focused startup builders. Embarc Collective offers on-demand coaching and programming led by experienced startup operators, curated live and on-demand programming, and access to national customers and investors, all amongst a peer community of 125+ tech startups operating within an award-winning 32,000-square-foot startup hub in downtown Tampa, Florida. In 2023, UBI Global, a notable benchmarking study that evaluates startup support programs from across the world, ranked Embarc Collective as a Top Challenger Program in North America.