Welcome to State of Startups in the Southeast 2023
Welcome to BIP Ventures' the State of Startups in the SoutheastSM 2023 report. The data in this year's assessment paints a picture of a region supporting a growing number of startups, many of which have demonstrated traction in stable sectors.
Nationally, gone are the days of 'growth at any cost' and long lists of Mega deals. Instead, we see a heightened sense of responsibility and careful recalibration of venture capital funding. More acutely, we have seen a shift to follow-on and later-stage deals. Across almost every state in the Southeast, the size of Seed investments has risen and seems to be staying there. And while fewer deals are happening, the ones completed are generally larger.
The report shows that funding is going to startups solving broad challenges in proven, high-potential sectors – notably, SaaS, Healthcare Tech, and Fintech. Also notable is that the Southeast has not (yet) gone deep into massive AI funding rounds, unlike the Bay Area, New York, and the Boston region.
On the whole, the State of Startups in the Southeast 2023 report gives reasons for measured optimism. Founders are developing healthier investment partnerships. A focus on sustainable growth has replaced distracting competition for multiple rounds. And the Southeast is earning its reputation as a region where being observant, measured, and focused on the long term is a proven recipe for exceptional outcomes.
Highlights
$5.8 Billion
Capital deployed across the region 1H 2023, compared to $14.7B in 2H 2022.
22%
Average check size increased $1.2 million from $5.5M in 2018 to $6.7M in 2023 YTD.
75%
Increase in the size of Seed deals in the Southeast, from $0.15M in 2018 to $0.26M in 2023 YTD.
$1.8 Billion
Increase in capital deployed annually from 2018 to projected full-year 2023 ($10.1B to $11.9B)
• Impact of 2017 Tax Cuts and Jobs Act
• Tech Antitrust Investigations
• COVID-19 Pandemic
• PPP Act (Paycheck Protection Program)
• CARES Act
• COVID-19 Pandemic
• PPP Act
• CARES Act
• Supply Chain Disruptions
• Supply Chain Disruptions
• Interest Rate Hikes
• Inflation Concerns
• Interest Rate Hikes
Hover over / tap each year for Deal Count and Funding
The Context
Over the past 5.5 years, global tumult and historical events have reshaped innovation and investing. Of course, the COVID-19 pandemic was the historical event that changed virtually everything and prompted sweeping changes across almost every sector. But if you look at the timeline since 2018, you see that the pandemic was just one of many significant events that impacted startup trajectories.
The State of Startups in the Southeast 2023 showcases how entrepreneurs built businesses to solve perplexing, pressing challenges over the past 5.5 years, and how in the last year, the venture capital industry reprioritized how it invests in them.
Redefining Stages and Sizes
Defining startup phases by deal size became a moving target between 2018 and 2023. Particularly as the amount of capital deployed into privately held companies rose wildly in 2020 and 2021, it became harder to tell the difference between Seed and Series B investments. But even as that hyped-up funding environment has ebbed in the past 12 months, the new definitions for funding rounds have persisted.
While deal definitions have evolved, the traditional size and age guidelines for a Seed-stage business have generally remained the same. For the State of Startups in the Southeast 2023 report, the upper end of a Seed deal is defined as the 45th percentile of all deals. The transition from a Traction deal to a Growth deal is defined as the 65th percentile.
While there is a decrease this year in the number of deals being completed, the data shows that many excellent early-stage startups are still closing funding rounds. In the Southeast, investment rounds are actually larger than before the private market run-up. Fewer deals are being completed, but the average size of those deals is larger, and this trend is apparent across most phases of startup maturity.
As check sizes have risen and deal numbers have dropped, the quality of early-stage portfolio companies has improved.
Change in Deal Size for Seed and Traction-Growth ($ millions)
Change in Number of Deals for Seed and Traction-Growth
As the charts illustrate, there has been growth in the amount of capital deployed at each stage. Seed deal sizes increased 100% from 2018 to the first half of 2023 ($0.5M to $1.0M). The transition point from Traction to Growth increased by 61%, from $2.8M in 2018 to $4.6M in the first half of 2023.
Key Takeaway
Fewer checks have been cut so far in 2023, but deals are still happening, and many of those investments are larger and of higher quality.
Based on the data presented, there appears to be a tendency among Southeast investors to take a more measured and meritocratic approach to funding innovation than our counterparts in other key Innovation hubs (notably, the Bay Area, New York, Boston region).
Investors in the Southeast show a tendency to be observant of good opportunities across industries, flexibility to pursue those opportunities, and the adeptness to capture and support high-potential startups through their scaling journey.
Implication for Innovators
The shift toward fewer but larger Seed deals has increased the comparative quality of the startups that are getting funded. The more meritocratic funding environment is both challenging and more manageable because the frenzy to raise has subsided. Founders can put their heads down and work on tackling the problems ahead and building a sustainable business rather than getting distracted by raising another round. More appropriate deal sizes and longer time horizons between funding means that founders prepared to make their money last will ultimately raise less on their way to success.
Implication for Investors
The Southeast appears to be a more measured investment market. Even with the earliest stage Seed deals, there is more of a focus on demonstrated sector potential and startup traction. And more follow-on deals indicate that companies will be held longer, offering an extended runway to build value and healthy exit outcomes.
The Southeast is Trailing (And That is Fantastic).
With fewer Megadeals and a measured approach to deal size, the Southeast creates investment tremors – rather than experiencing the kind of earthquakes that the Big 3 Innovation markets endure. If you look at data trends going back to 2018, two indications about the investment personality of the Southeast emerge.
1. The Southeast tends to be a generally stable VC investment environment. When the venture market goes up or down, so does the Southeast, just not as aggressively.
2. In the Southeast, up and down investment swings lag behind the Big 3 Innovation markets by one to two quarters.
Average Dollars Invested per Deal trend lines show that the Southeast follows the same general deal patterns as the other markets, but the average dollar amounts are lower. Quarter-by-quarter peaks and valleys (See: 3Q-4Q 2018, 2Q-3Q 2020, 4Q 2022-1Q 2023) reveal that the Southeast throttles and pulls back investment dollars on a schedule that slightly lags the Big 3 Innovation markets. Notably, data shows that the quarter following the high in the Big 3 Innovation markets declined on average at 167%, compared to 83% in the Southeast.
Total Dollars Deployed trend lines show the Southeast average dollars per deal are lower than the Big 3 Innovation markets. Still, total dollars deployed have kept up with Boston and New York in recent years. That trend indicates that the Southeast is beginning to invest in companies at the same pace (quantity), just at a lower value per deal.
Southeast Compared to Big 3 Markets:
Funding Trends Capital Invested per Company
Investors in the Southeast appear to take a watchful approach to funding, rather than an aggressive pursuit of new logos, which tends to characterize other major innovation markets like the Bay Area, New York, and Boston region.
Southeastern investment firms also show greater persistence in the value of deals over the lifecycle of a portfolio. Though fewer dollars were deployed in the Southeast between 2018 and YTD 2023, higher quality, higher potential startups were funded. The watch-and-see approach and propensity to fund more mature startups and follow-ons speak to a measured investment philosophy that yields lower-magnitude rises and falls, and more stability.
Implication for Innovators
The Southeast is a healthy funding environment for startups. Fewer deals, the inclination toward follow-ons, and the patience and tenacity of investors to stay with a company through its growth journey means more time for founders to build successful, sustainable businesses.
Implication for Investors
A more measured investing approach exposes less dollars early when the potential outcome has more variance. As companies warrant additional capital through success, follow-on rounds become available to deploy additional capital into the early winners. For investors who’s approach mirrors that of an active investor with patient capital, dollars may be better spent in the Southeast.
Investors Are Navigating Risk and Reward by Sector and Stage.
In the Southeast, recent investment trends show a clear preference for areas with proven success over new entrants to the region. The preference means that stalwart industries are now capturing the majority of funding dollars. SaaS, Healthcare, and Fintech startups have built a track record in the region of solving some of the most vexing challenges in recent history, and are garnering consistent support from investors through bigger investments and more follow-on rounds.
SaaS
When the market is up or down, funding as a percentage of all deals remains stable.
SaaS remains stable throughout market challenges and remains high when making less risky choices. The sector ranges between 26% and 32% of all deals, with its lowest rate during unrest (e.g., Covid spikes in Q2 2020 and Q4 2020, which drove market instability).
Healthcare
Shows stability in times of instability, with more of every dollar invested now going to Healthcare.
The dollar value of deals rose from 9% to 22% from 2022 to 2023, and so far in 2023, 36% of Mega deals are in the sector.
Fintech
Fintech rode the market – it went up in 2021 and 2022, and came down quickly in 2023.
In 2022, Fintech captured a high percentage of large investments – 27% of Mega deals. As the market has slowed, deal counts and sizes have slowed.
Number of Deals by Sector
2020
2021
2022
2023 (1st Half)
One way investors are prioritizing by sector is by allocating more funding to follow-on and later-stage deals. Across almost every state in the Southeast, follow-on deals constitute the largest number of deals and the biggest dollar amounts.
Number of Follow-on Investments by Category
Of the 251 follow-on deals in key sectors made between 2018 and 2023, startups in SaaS (27%), Biotech/Pharma (21%), and Healthcare (18%) are gaining an outsized percentage of the funding.
Implication for Innovators
In the current market, patience and reason should rule the funding process. Fewer early-stage startups are raising large rounds, with those rounds going to more mature companies. Use the capital raised efficiently to show traction that warrants additional investment. When raising a round, founders should understand potential investor’s areas of focus and seek venture capital partners that will provide support through the scaling journey, however long that road may be.
Implication for Investors
For those with a long-term investment mentality, it's worthwhile to consider the cyclical nature of a sector. Particularly when the broader market is unstable, the data shows a shift in investment toward more established sectors like SaaS and Healthcare, where consistent traction and patience is likely to be rewarded.
The Southeast is Driving Innovation with Larger Average Checks.
Even though the deal counts and total investments have gone down in the Southeast in 2023 and fewer Mega deals have happened, the average check size is still 22% larger than it was in 2018.
Seed-stage deals are getting larger, and investors are putting more dollars into follow-on rounds – while keeping funding amounts appropriate to meet the needs of the startup and the macroeconomic climate.
The chart below shows inflation as a percentage compared to 2018 and the growth in average check size as a percentage along the same time horizon. While average check size grew dramatically through 2021 for the Innovation hubs and through 2022 for the Southeast, the dramatic compression in deal size seen recently still keeps up with inflation across the regions studied.
Percentage Average Check Size Growth Compared to Inflation
The growth of average check size across the three Innovation Centers at times seemed ridiculous, far outpacing inflation since 2018. However, as we move through 2023, it is interesting to note that while we’ve seen check size compression across all stages of maturity, all four regions have grown their average check size to at least keep up with inflation. In general, entrepreneurs have less capital to deploy, as the cost of capital has gone up significantly, but they should be able to run their business similarly to how they ran them in 2018, with a focus on business fundamentals and a careful eye on burn ratios and revenue traction.
Implication for Innovators
Traction, Growth, and Seed deals continue to increase in size, even without as many Mega deals. While inflation has also increased, the attractiveness of building a business in a region with a track record of success, consistent funding sources, and a lower cost of living is leading to more and more great companies being born and scaled in the Southeast.
Implication for Investors
With the average size of deals getting larger and inflation following suit, investing now seems more challenging than usual. Ironically, because of the aforementioned challenges, now is one of the most investor-friendly deal environments in recent history. Great startups are still being built and they need capital to establish and sustain their growth. With a lower cost of living and a track record of success across multiple sectors, the Southeast seems like a great place to invest thoughtfully in promising companies.
State-by-State Comparisons
The Southeast investment and startup environment is in a state of change. Generally, investment behaviors appear to be shifting back toward pre-pandemic (2019) patterns. The region is undergoing a maturation process and is well-positioned for sustained growth.
Across all the states in the Southeast, funding patterns in the first half of 2023 favor larger investments in fewer companies.
The investments completed in most of the states in the Southeast are in sectors perceived as less volatile. Specifically, the data shows a move away from Fintech and to SaaS and Healthcare sectors. All the states also seem to be trending toward larger follow-on investments in more mature, proven startups. For startups, the Southeast continues to be an attractive destination due to the availability of capital, a growing talent pool, and a favorable business climate.
Click on a state to review its corresponding data
State: Georgia
State: Alabama
State: Florida
State: Mississippi
State: Kentucky
State: Tennessee
State: Virginia
State: South Carolina
State: North Carolina
2,287
Total Investments
Since 2018
$13.7B
Total Dollars Invested Since 2018
Georgia is a steady innovation and startup environment that continues to evolve. So far, in 2023, SaaS has supplanted Fintech in the number of deals and the dollars invested, continuing a trend that began last year. In 2022, SaaS was a close second based on dollars invested and had more deals. At the mid-year, Georgia is lagging slightly in deal count (146) and dollars invested ($730M). Both are at about a third of 2022 numbers (446 and $2.6B, respectively). The funding community has also evolved, with new names in almost every investor category.
509
Total Investments
Since 2018
$1.6B
Total Dollars Invested Since 2018
Alabama has performed among the top of all the states in the Southeast YTD 2023. Halfway through the year, the total invested is $462M – more than double the total invested in the state in 2022 ($202M) and higher than its peak in 2021 ($348M). Investments in Healthcare are driving most of the progress. With 88 deals so far in 2023, Healthcare is second only to SaaS (128) for deal count, and average check sizes are larger than any other sector.
4,376
Total Investments
Since 2018
$18.8B
Total Dollars Invested Since 2018
Florida remains a resource-rich innovation ecosystem and a startup deal leader. So far in 2023, deal counts and dollars invested are big across the board, and the state has minted a new Unicorn with cybersecurity firm KnowBe4. Nonetheless, Florida appears to be slightly off pace to sustain the trajectory it has held since 2021. Deal counts are lagging and total invested dollars are below the past two years. These trends seem to be a return to a pre-pandemic (2019) investment environment. Also worth noting is that Florida has begun to make a shift away from its stalwart focus on Fintech, dedicating as much funding to SaaS startups ($5.3B) as Fintech ($5.3B).
561
Total Investments
Since 2018
$1.6B
Total Dollars Invested Since 2018
Historically, Biotech/Pharma and Healthcare startups have garnered the largest deal sizes in Kentucky. So far in 2023, SaaS has assumed the top spot for dollars invested. As investors continue to put large investments into Biotech/Pharma and Healthcare companies, the average deal size for the three sectors has become about equal (approximately $3M). Based on the number of deals and invested dollars, Kentucky appears to be lagging behind 2022 and its relatively steady investment environment.
91
Total Investments
Since 2018
$150M
Total Dollars Invested Since 2018
After a hot investment climate in 2022, Mississippi has seen its startup environment dry up in the first half of 2023. There have been two (2) deals made YTD 2023 and the state is on track to have its lowest deal flows since before 2018. The drop-off appears to be due to a lack of activity in Fintech, which was the leading sector in the state until this year. Consumer Tech currently is getting the highest numbers of deals and funding amounts, with average check sizes of $500,000.
2,654
Total Investments
Since 2018
$18.1B
Total Dollars Invested Since 2018
North Carolina remains a robust, healthy startup environment. By dollars invested ($8.4B) and deal count (619), SaaS is the top sector. The average check size is noteworthy as well, at $13.5M. Biotech/Pharma ($3.6B invested) and Healthcare ($1.1B invested) are also garnering large check sizes. The state's robust startup environment appears to be on track to maintain its deal flow. At the mid-point of 2023, the $1B in actual dollars invested is lower than needed to sustain the pace set over the past two years, but the environment appears poised for continued growth.
581
Total Investments
Since 2018
$1.8B
Total Dollars Invested Since 2018
In South Carolina, SaaS has taken the top spot for funding amounts ($291M) and deal counts (142). By dollars, investments in Fintech companies ($283M) are a close second to SaaS, though the deal counts are lower (30). The significance of these deal sizes indicate that the state may be working to grow more mature startups in this critical industry. Like most states in the Southeast, South Carolina appears to be off pace at the mid-point of the year to maintain its steady startup funding environment. Based on dollars invested, the state is on track to return to pre-pandemic (2018-2019) levels.
1,153
Total Investments
Since 2018
$4.9B
Total Dollars Invested Since 2018
Tennessee is making larger-scale investments in fewer companies and focusing on SaaS and Healthcare startups. Specifically, 241 Healthcare IT companies have garnered $2B in funding since 2018, and 294 SaaS companies have taken in $838M in funding YTD 2023. The state is on track to hit the investment trends it has set over the past few years. Deal counts (80) are on the low side, but dollars invested are high – in fact, they have already outpaced total investments made in 2018, 2019, and 2020. Interestingly, the state also has a spate of new players in almost every investor category.
2,171
Total Investments
Since 2018
$11.8B
Total Dollars Invested Since 2018
Coming out of a solid 2022, Virginia is generally on track to come close to 2021-2022 deal counts and investments based on 2023 activity. It should at least return to pre-pandemic startup investment levels. As with other states in the region, SaaS has taken over for Fintech as the top area of investment by dollars and counts in Virginia, with $2.5B going into 612 companies. Healthcare companies are also raising well, with $1.5B going into 247 companies. The sector focus puts Virginia on track with most other states in the Southeast, investing more in proven startups in more stable sectors.
Top Industries
SaaS | $4,199M
Fintech | $2,479M
Consumer Tech | $1,619M
SaaS | 790
Healthcare IT | 302
Consumer Tech | 290
Total Deals and Investments
Sector Leaders and Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
Government-Backed
Top Industries
Healthcare IT| $448M
SaaS | $321M
Manufacturing / Industrial Tech | $143M
SaaS | 128
Healthcare IT | 88
Consumer Tech | 55
Total Deals and Investments
Sector Leaders and Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
Government-Backed
Top Industries
SaaS| $5,283M
Fintech | $5,254M
Media | $3,183M
SaaS | 1,394
Consumer Tech| 676
Healthcare IT | 501
Total Deals and Investments
Sector Leaders and Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
Government-Backed
Top Industries
SaaS| $442M
Biotech / Pharma | $311M
Healthcare IT | $164M
SaaS | 135
Consumer Tech| 115
Healthcare IT | 97
Total Deals and Investments
Sector Leaders and Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
Government-Backed
Top Industries
Biotech / Pharma| $27M
Consumer Tech | $11M
Cybersecurity | $10M
Consumer Tech| 20
SaaS | 19
Manufacturing / Industrial Tech | 6
Total Deals and Investments
Sector Leaders and Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
Government-Backed
Top Industries
SaaS| $8,383M
Biotech / Pharma | $3,580M
Healthcare IT | $1,112M
SaaS | 619
Biotech / Pharma| 521
Consumer Tech | 431
Total Deals and Investments
Sector Leaders and Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
Government-Backed
Top Industries
SaaS| $291M
Fintech | $283M
Consumer Tech | $196M
SaaS | 142
Consumer Tech | 96
Healthcare IT| 87
Total Deals and Investments
Sector Leaders and Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
Government-Backed
Top Industries
Healthcare IT | $1,960M
SaaS| $838M
Fintech | $680M
SaaS | 294
Healthcare IT| 241
Consumer Tech | 137
Total Deals and Investments
Sector Leaders and Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
Government-Backed
Top Industries
SaaS| $2,510M
Healthcare IT | $1,542M
Biotech / Pharma | $1,114M
SaaS | 612
Healthcare IT| 247
Consumer Tech | 244
Total Deals and Investments
Sector Leaders and Deals Completed
Venture Capital Funds
Angel Activity
Incubators & Accelerators
Government-Backed
Conclusion and Methodology
The State of Startups in the Southeast 2023 report gives reasons for measured optimism about the region and the Innovation Economy as a whole. As fewer startups gain funding and average check sizes grow – without becoming inappropriately large – investors participating in the Southeast are helping to lay a foundation for the ongoing maturation and health of the region.
Across each of the states, investors continue to participate in the Innovation Economy with shifting areas of focus, an eye on monthly burn and revenue traction, and an overall concern for what will come next on a macroeconomic scale.
And founders are proving their incredible worth by launching and growing businesses that are solving real national and global problems at scale.
Together, this ecosystem behaves as a virtuous cycle. And the Southeast is earning its reputation as a region where being observant, measured, and focused on the long term is a proven recipe for exceptional outcomes.
Summary Tables and Graphs
Top 10s
These rankings are based on firms that did deals with a startup headquartered in the Southeast.
| Incubators / Accelerators | Deal Count | |
|---|---|---|
| 1 | Techstars | 314 |
| 2 | NC IDEA | 205 |
| 3 | Plug and Play Tech Center | 132 |
| 4 | Y Combinator | 115 |
| 5 | Astralabs | 83 |
| 6 | CREATE-X | 65 |
| 7 | gener8tor | 51 |
| 8 | Innovation Depot | 42 |
| 9 | VentureWell | 38 |
| 10 | MassChallenge | 31 |
| Angels | Deal Count | |
|---|---|---|
| 1 | VentureSouth | 60 |
| 2 | Keiretsu Forum | 51 |
| 3 | Miami Angels | 39 |
| 4 | Atlanta Technology Angels | 37 |
| 5 | Charlottesville Angel Network | 34 |
| 6 | 757 Angels | 27 |
| 7 | Bluegrass Angels (TIE) | 25 |
| 8 | CAV Angels (TIE) | 25 |
| 9 | Sand Hill Angels | 21 |
| 10 | Carolina Angel Network | 19 |
| Venture Capital Funds | Deal Count | |
|---|---|---|
| 1 | Keyhorse Capital | 84 |
| 2 | Florida Funders | 77 |
| 3 | Right Side Capital (TIE) | 75 |
| 4 | Triangle Tweener Fund (TIE) | 75 |
| 5 | Alumni Ventures | 73 |
| 6 | Tech Square Ventures | 71 |
| 7 | Gaingels | 70 |
| 8 | Service Provider Capital | 67 |
| 9 | BIP Ventures | 56 |
| 10 | Revolution | 53 |
| Government Backed Venture Investments | Deal Count | |
|---|---|---|
| 1 | Virginia Venture Partners (VVP) | 149 |
| 2 | National Science Foundation Innovation Corps Program (NSF-I Corps) | 82 |
| 3 | SC Launch | 74 |
| 4 | Georgia Research Alliance | 59 |
| 5 | Launch Tennessee | 34 |
| 6 | Alabama Launchpad | 31 |
| 7 | Virginia Innovation Partnership (VIPC) | 27 |
| 8 | i.Lab at UVA | 19 |
| 9 | Innovate Mississippi (TIE) | 17 |
| 10 | Institute for Commercialization of Florida Technology (TIE) | 17 |
Total Deal Counts and Investments in the Southeast (Rank by Total $ Invested)
Notable Exits by State Since 2018
These rankings are based on firms that did deals with a startup headquartered in the Southeast.
| Company | Buyer | Year | Value |
|---|---|---|---|
| Abaco Systems | Ametex | 2021 | $1.3B |
| CSP Technologies | AptarGroup | 2018 | $556M |
| Company | Buyer | Year | Value |
|---|---|---|---|
| Citrix | Vista Equity/Evergreen Coast Capital | 2022 | $16.5B |
| Luminar | Gores Metropoulus | 2020 | $3.4B |
| Ion Media | E.W. Scripps | 2021 | $2.7B |
| AeroCare Holdings | AdaptHealth | 2021 | $2.4B |
| MDLive | Cigna | 2021 | $2.0B |
| Igenomix | Vitrolife | 2021 | $1.4B |
| PureCycle Technologies | Byron Roth | 2021 | $1.2B |
| Oasis Outsourcing | Paychex | 2018 | $1.2B |
| Technisys | SoFi | 2022 | $1.1B |
| Treace Medical Concepts | IPO | 2021 | $857M |
| Finxact | Fiserv | 2022 | $650M |
| Nearpod | Renaissance Learning | 2021 | $650M |
| Aurora Diagnostics | Sonic Healthcare | 2019 | $540M |
| Pixeom | Siemens | 2019 | $480M |
| Clinigence Health | Nutex Health | 2022 | $447M |
| SafetyPay | Paysafe Group | 2022 | $441M |
| Sentry Data Systems | Craneware | 2021 | $400M |
| Navitas Credit | United Community Bank | 2018 | $393M |
| AFS Technologies (Florida) | Telus | 2020 | $315M |
| Company | Buyer | Year | Value |
|---|---|---|---|
| MailChimp | Intuit | 2021 | $12.0B |
| EVO Payments | Global Payments | 2023 | $4.0B |
| Cloudmed | R1 RCM | 2022 | $4.1B |
| Kindred At Home | Humana | 2021 | $3.6B |
| Salesloft | Vista Equity Partners | 2023 | $2.3B |
| Immucor | Werfen Life Group | 2023 | $2.0B |
| PowerPlan | Roper Technologies | 2018 | $1.1B |
| Danimer Scientific | Live Oak Acquisition | 2020 | $890M |
| GreenSky | IPO | 2018 | $874M |
| Kabbage | American Express | 2020 | $850M |
| Payrix Solutions | Fidelity | 2021 | $777M |
| RentPath | Redfin | 2021 | $608M |
| Roadie | UPS | 2021 | $586M |
| Tensar International | Commercial Metals | 2022 | $550M |
| Cartiva | Wright Medical Group | 2018 | $435M |
| mGage | Kaleyra | 2021 | $418M |
| MerchantE | OPN | 2022 | $375M |
| Star2Star Communications | Sangoma Technologies | 2021 | $354M |
| LifeWorks | Morneau Shepell | 2018 | $331M |
| Liaison | OpenText | 2018 | $310M |
| IDology | GB Group | 2019 | $300M |
| Bridge2 Solutions | Intercontinental Exchange | 2020 | $261M |
| Top of Mind Networks | Black Knight | 2021 | $254M |
| Cardlytics | IPO | 2018 | $254M |
| Company | Buyer | Year | Value |
|---|---|---|---|
| AppHarvest | Novus Capital | 2021 | $1.0B |
| Talaris Therapeutics | IPO | 2021 | $701M |
| Company | Buyer | Year | Value |
|---|---|---|---|
| Red Hat | IBM | 2019 | $34.0B |
| AskBio | Bayer | 2020 | $4.0B |
| nCino | SPAC | 2020 | $2.7B |
| Brightly Software | Siemens | 2022 | $1.9B |
| Parata System | Becton, Dickinson and Company | 2022 | $1.5B |
| Villaris Therapeutics | Incyte | 2022 | $1.4B |
| Ennis-Flint | PPG Industries | 2022 | $1.1B |
| ettain group | Experis | 2021 | $925M |
| Dova Pharmaceuticals | Swedish Orphan Biovitrum | 2019 | $915M |
| Precision BioSciences | IPO | 2019 | $803M |
| Primo Water | Cott | 2020 | $775M |
| AvidXchange | IPO | 2022 | $660M |
| Rego Products | OPW | 2021 | $631M |
| BioDelivery Sciences | Collegium | 2022 | $604M |
| PrecisionLender | Q2 Holdings | 2019 | $518M |
| Brightly Software | Siemens | 2019 | $500M |
| ReKTGlobal | Infinite Reality | 2022 | $470M |
| Verrica Pharmaceuticals | IPO | 2018 | $374M |
| Samanage | Solarwinds | 2019 | $342M |
| Avista Pharma | Cambrex | 2019 | $252M |
| Company | Buyer | Year | Value |
|---|---|---|---|
| Hargary Communications | Sparklight | 2021 | $2.1B |
| The Gordian Group | Fortive | 2018 | $778M |
| Benefitfocus | Voya Financial | 2023 | $595M |
| Company | Buyer | Year | Value |
|---|---|---|---|
| Change Healthcare | Optum | 2022 | $13B |
| Clover Health | Social Capital | 2021 | $4.5B |
| NaviHealth | Optum | 2020 | $2.9B |
| TransCore | ST Engineering | 2022 | $2.7B |
| Shoals Technologies Group | IPO | 2021 | $1.9B |
| SmileDirectClub | IPO | 2019 | $1.3B |
| Change Healthcare | Optum | 2019 | $641M |
| Confirmation | Thomson Rueters | 2019 | $377M |
| Intermedix | R1 RCM | 2018 | $460M |
| Company | Buyer | Year | Value |
|---|---|---|---|
| Mandiant | Alphabet | 2022 | $6.1B |
| InSite Wireless Group | American Tower | 2020 | $3.5B |
| Neustar | TransUnion | 2021 | $3.1B |
| Clarabridge | Qualtrics | 2021 | $1.3B |
| Fluence | IPO | 2021 | $868M |
| Trader Interactive | Carsales.com | 2022 | $778M |
| ECS Federal | ASGN | 2018 | $775M |
| LGS Innovations | CACI International | 2018 | $758M |
| PieTech | Evestnet | 2019 | $500M |
| Privia Health | IPO | 2021 | $449M |
| Cofense | BlackRock | 2018 | $400M |
| Cavion | Jazz Pharmaceuticals | 2019 | $313M |
| Verodin | FireEye | 2019 | $250M |
Southeastern Unicorns
There are 34 unicorns being tracked in the Southeast as of June 30, 2023. Since January 1, 2022, the region gained 11 new Unicorns and lost one (1). The new Unicorn additions were from Florida, North Carolina, South Carolina, Tennessee, and Virginia. By count, the new Unicorns fell into four categories: SaaS (three), Manufacturing and Industrial Tech (three), Media and Entertainment (two), Healthcare and Life Sciences (two), Consumer and Retail (one).
Companies in Orange are new additions since 2022.
| Company | Valuation ($B) | Unicorn Date | Industry | State |
|---|---|---|---|---|
| REEF Technology | $1.00 | 12/10/2018 | Industrial Tech | Florida |
| Kaseya | $2.00 | 3/27/2019 | SaaS | Florida |
| Pipe | $2.00 | 5/19/2021 | Financial Services | Florida |
| Offchain Labs | $1.20 | 8/31/2021 | SaaS | Florida |
| Papa | $1.40 | 11/4/2021 | Healthcare & Life Sciences | Florida |
| MoonPay | $3.40 | 11/22/2021 | Financial Services | Florida |
| ReliaQuest | $1.00 | 12/1/2021 | SaaS | Florida |
| Jeeves | $2.10 | 3/14/2022 | SaaS | Florida |
| Yuga Labs | $4.00 | 3/22/2022 | Media & Entertainment | Florida |
| Genies | $1.00 | 4/12/2022 | Media & Entertainment | Florida |
| Material Bank | $1.90 | 5/6/2022 | Industrial Tech | Florida |
| Cirkul | $1.07 | 6/13/2022 | Consumer & Retail | Florida |
| Company | Valuation ($B) | Unicorn Date | Industry | State |
|---|---|---|---|---|
| OneTrust | $5.10 | 7/11/2019 | SaaS | Georgia |
| Greenlight | $2.30 | 9/24/2020 | Financial Services | Georgia |
| Calendly | $3.00 | 1/26/2021 | SaaS | Georgia |
| Flock Safety | $3.50 | 7/13/2021 | Consumer & Retail | Georgia |
| FullStory | $1.80 | 8/4/2021 | SaaS | Georgia |
| STORD | $1.30 | 9/13/2021 | Industrial Tech | Georgia |
| Company | Valuation ($B) | Unicorn Date | Industry | State |
|---|---|---|---|---|
| JumpCloud | $2.62 | 9/13/2021 | SaaS | Kentucky |
| Company | Valuation ($B) | Unicorn Date | Industry | State |
|---|---|---|---|---|
| Tresata | $1.00 | 10/10/2018 | Financial Services | North Carolina |
| Epic Games | $31.50 | 10/26/2018 | Media & Entertainment | North Carolina |
| Pendo | $2.60 | 10/17/2019 | SaaS | North Carolina |
| Locus Robotics | $1.00 | 2/17/2021 | Industrial Tech | North Carolina |
| Printful | $1.00 | 5/24/2021 | Consumer & Retail | North Carolina |
| Aura | $2.50 | 6/9/2021 | Consumer & Retail | North Carolina |
| Oyster | $1.00 | 4/20/2022 | SaaS | North Carolina |
| JupiterOne | $1.00 | 6/2/2022 | SaaS | North Carolina |
| VulcanForms | $1.00 | 7/5/2022 | Industrial Tech | North Carolina |
| Company | Valuation ($B) | Unicorn Date | Industry | State |
|---|---|---|---|---|
| Palmetto | $1.00 | 2/24/2022 | Industrial Tech | South Carolina |
| Company | Valuation ($B) | Unicorn Date | Industry | State |
|---|---|---|---|---|
| Built | $1.50 | 9/30/2021 | Financial Services | Tennessee |
| CareBridge | $1.00 | 6/8/2022 | Healthcare & Life Sciences | Tennessee |
| Company | Valuation ($B) | Unicorn Date | Industry | State |
|---|---|---|---|---|
| ID.me | $1.50 | 3/19/2021 | Consumer & Retail | Virginia |
| Expel | $1.00 | 11/18/2021 | SaaS | Virginia |
| Somatus | $2.50 | 2/23/2022 | Healthcare & Life Sciences | Virginia |
Methodology
Compilation and analyses for the State of Startups in the SoutheastSM 2023 report were conducted by a team of experts across our firm, led by BIP Ventures General Partner and Chief Operating Officer Mark Flickinger. He is one of the most established and innovative authorities in startup growth and investing.
The report provides a detailed, data-driven snapshot of startup and investment activities across the states that comprise the Southeastern United States: Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee, and Virginia. The data presented in this report is a snapshot as of June 30, 2023. Some of the deals noted in the report may be pending and it is possible that reported data is subject to change at the time of publication. Insights reflect YTD2023 trends through June 2023. They are paired with detailed comparisons with every year since 2018 to offer a comprehensive trend assessment of startup and investment activities.
Data included in the report is sourced from Pitchbook, via the following parameters:
- Deal Date: 01-Jan-2018 through 30-Jun-2023
- Deal Type: All VC Stages
- Locations: Southeast, Big 3 Innovation Markets (Bay Area, New York, Boston region) for comparison
- Companies: Headquarters in a state in the Southeast
During the research process, our team worked directly with Pitchbook to confirm all data and corroborate sources, ensuring the accuracy of all numbers reported.
Additional insights were sourced from CB Insights research and proprietary BIP Ventures data.
Bibliography and Resources
- 2023, Pitchbook Data, Inc.
- "The Complete List of Unicorn Companies"
Average Check Size Compared to Inflation Chart Sources
- Inflation: FRED Graph Observations
- Federal Reserve Economic Data
- Economic Research Division
- Federal Reserve Bank of St. Louis
- Consumer Price Index: All Items: Total for United States, Index 2015=100, Quarterly, Not Seasonally Adjusted
