Earlier this week, BIP Capital released its 2nd annual “State of Startups in the Southeast” report. You can download the 2018 report here and the 2017 report here. This report takes a unique look at the environment for startups raising capital in the SEC states of Florida, Georgia, Alabama, Tennessee, South Carolina, North Carolina, Kentucky, and Virginia. The focus of the report is on changes in valuations, investment velocity, deal size, and geographical activity. In my analysis of the report, I focus on what’s going on in Georgia, and the general trends towards the Southeast – mainly Georgia – competing with Silicon Valley, Boston, and NYC as startup innovation hubs.
Data supports the the common assumption that companies in the Innovation Hubs are raising significantly more capital at earlier stages in the company lifecycle. – In other words, investors in the valley, Boston, and NYC are betting more dollars earlier in the startup’s lifecycle than investors in the SE. This fact supports the general understanding that the south is a more conservative investment environment. We’re not ready to make big, early bets. Yet.