US Southeast Sees 30% Progress In New Enterprise Capital Agency Creation Since 2019

New report exhibits growing entry to startup capital in America’s southeast area

TAMPA, Fla., Sept. 16, 2021  — Embarc Collective, the startup hub which helps founders in Florida construct daring, thriving, scalable firms and Build In SE, a neighborhood on a mission to assist founders selecting to construct their firms within the Southeast, as we speak introduced the findings from their third annual Southeast Capital Panorama Report.

The report, which was created to assist startup founders extra simply discover native capital sources and funding alternatives  throughout the Southeast (a area outlined as Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, & West Virginia) exhibits an growing charge of recent enterprise capital agency creation over the previous three years.

In 2021, the report recognized 280 corporations within the area which might be actively investing in pre-seed to personal fairness—demonstrating a development of 40 new corporations since 2020’s report and 80 added corporations for the reason that inaugural report in 2019.

The report attributes the area’s growing entry to capital to quite a lot of components, together with:

  • Tech Migration to the Southeast: With distant work normalizing digital conferences between buyers and startup CEOs, {dollars} allotted to Southeast-based startups grew. This led to an inflow of newly relocated corporations and new funds raised to seize native deal movement. Some examples embrace Founders Fund, Harlem Capital, and Normal Catalyst, which all opened Southeast places of work prior to now 12 months.
  • Densities of Startups in New Industries: Quite a few startups targeted on fintech, digital well being, and enterprise SaaS are making a density of expertise that pulls buyers. For instance, for the reason that starting of 2021, life sciences firms in North Carolina have skilled over $3B in funding and created almost 3,000 new jobs.
  • Focusing Capital on Underrepresented Founders: 2021 introduced a shift within the VC panorama, with a rise within the allocation of funding for underrepresented founders. This shift is most dramatically seen in Atlanta, the place 41% of the 36 early-stage VC corporations determine as having a range focus throughout investments, a various fund administration crew, or each.
  • An Enhance in Ladies Traders: The state with the very best variety of lively ladies buyers is Georgia with 25, adopted by Tennessee and Florida tied for second place with 19 institutional buyers. Over half (53 of 90, or 58%) of ladies buyers within the Southeast maintain prime management titles of Founding and/or Normal Associate, Managing Associate/Director, or Associate.

“By the Southeast Capital Panorama report, we’re not solely documenting this extremely encouraging rise in startup funding availability within the Southeast, however I imagine this mission contributes to it as nicely,” mentioned Allie Felix, VP Platform of Embarc Collective. “Through the years, we’ve heard many anecdotes from founders crafting their investor prospecting listing and buyers discovering deal movement from this useful resource, and I hope it continues to be a strong software for these teams.”

“Inside our respective startup communities, one of the vital widespread questions we hear is, ‘Who’re the lively buyers within the Southeast I ought to join with?’” mentioned Monique Villa, co-founder of Construct In SE. “Our major aim is to not solely reply these questions for founders however to save lots of them treasured time in figuring out right-sized native capital to allow them to concentrate on firm constructing. The potential for development within the Southeast is exponential, as we’re witnessing with MailChimp, Calendly, SmileDirectClub, and a rising listing of different marquee firms constructing and scaling right here, turning the heads of buyers who will discover themselves drawn to the Southeast within the years to come back.”

To study extra concerning the Southeast Capital Panorama, go to https://bit.ly/SECapitalLandscape

About Embarc Collective

Embarc Collective is a nonprofit startup hub serving to founders within the Tampa Bay area construct daring, scalable, thriving firms. Embarc Collective affords hands-on assist pushed by the distinctive objectives and desires of every member startup at its 32,000 square-foot workplace in downtown Tampa. Member firms obtain custom-made, ongoing teaching and assist from startup veterans to assist propel member firms’ development. Embarc Collective works with a rising roster of over 100 early-stage startups and is the fastest-growing startup hub in Florida.

About Construct In SE

Construct In SE’s mission is to extend the variety of startup success tales within the Southeast by leveraging a cross-regional, collaborative community. Construct In SE is constructing regional intelligence by means of its crew of native Ecosystem Curators, Alliance companions, and investor communities, all in assist of founders as they launch and scale their startups. Construct In SE is a licensed Profit Company headquartered in Nashville, Tennessee.

US Southeast Sees 30% Growth in New Venture Capital Firm Creation Since 2019 1

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