Southeastern North Carolina Sees Growing Venture Capital Activity, 2019-2021



RALEIGH – A new report on investor activity in the Southeast has identified a 30% increase in the creation of venture capital firms in the region over the past three years, the total number of firms in the region of the 10 states are now 280.

The Triangle is home to 27 companies followed in the third annual report Southeast Capital Landscape Report, which was published jointly by Embarc Collective and Build In SE.

The report attributes the region’s growing access to capital to a number of factors, including the migration of tech companies and tech talent to the region, as remote work opportunities are changing the way businesses and individuals alike. envision the intersection of work and life. Venture capital firms are also changing their response, the report concluded, noting that Founders Fund, Harlem Capital and General Catalyst have all opened offices in the Southeast in the past year.

The report also noted the increasing density of startups, both early stage and growing, in industry verticals, and the authors highlighted the Carolina life science industry. North, which they say has attracted more than $ 3 billion in investment and created or announced 3,000 new jobs. in the state in 2021.

After a record year for venture capital financing, what is the future of our state? This program examines

“In recent years, the Southeast has seen an influx of individual tech talent from larger markets like San Francisco,” said Allie Felix, vice president of platform at Embarc Collective, and one of the authors. of the report, in an interview with WRAL. TechWire. “Each transplant brings its unique experience and network that will have a long-term impact on our communities, joining local startups or providing their own investment capital. “

Felix noted that over the past 18 months, dollars allocated to Southeast-based startups have increased. Part of that, Felix said, was due to the standardization of virtual meetings between investors and startup CEOs, and part of it came from an influx of new or outsourced companies and new funds raised locally capturing the flow of companies. local affairs.

Yet the Southeast historically attracts less investment capital than other parts of the United States, even though venture capital investments are setting new records in the state, region, and nationally.

But that could change, Felix said. “The Southeast has early indicators of a flywheel effect, where start-ups become growing companies that eventually produce an exit, and in turn, reinvest large amounts of capital, resources. and talent in our ecosystems. “

“Watching this startup lifecycle unfold confirms to domestic investors that high growth startups can start successfully at scale in these markets,” said Felix.

How early-stage investing changed in the Triangle after the start of the COVID-19 pandemic


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