BIP Ventures releases its latest “State of Startups in the Southeast 2025” report
The Southeast consistently accounts for 10-12 percent of U.S. capital invested and 9-10 percent of deals.
BIP Ventures has released the latest version of its annual “State of StartupsSM in the Southeast 2025,” and a few key themes are evident.
“In 2025, stability, selectivity, and rigor are defining themes of the Southeastern venture ecosystem, which remains an influential presence in the U.S. innovation economy,” the report concludes. “The ‘return to normal’ that began in 2024 has continued, putting deal activity, aggregate capital amounts, and valuations on a steady, slightly upward trend. The Southeast consistently accounts for 10-12 percent of U.S. capital invested and 9-10 percent of deals. By comparison, in the past 12 months, the “super-hub” Bay Area and Northeast venture markets deployed 76.7 percent of all capital into half of the total U.S. deal count. In part, the size differences are due to investors in the Southeast continuing to eschew hype cycles and mega-deals ($100 million+) in favor of supporting the continuity and durability of its businesses, funds, and investor community.”
The report notes that the Southeast is not immune to the artificial intelligence (AI) wave that is embracing the U.S. and the world.
“Across every region of the U.S., the majority of venture activity in 2024-2025 has focused on AI businesses,” the latest edition notes. “A small number of pure-play AI companies have captured mega-deals from the coastal ‘super-hubs,’ but most funding activity is directed at start-ups using AI to build structural advantages. That is the case in the Southeast, where embedded AI has become an expectation for investment. Capital is funneling into businesses demonstrating measurable operational efficiencies and product advancements using AI.”
The report also calls out two areas of particular interest in the Southeast region.
“According to 2025 projections, Information Technology and Healthcare are drawing the most investment in the Southeast by large margins. Information Technology is a decisive juggernaut, with forecasted funding exceeding $7 billion, primarily driven by the deep integration of AI across enterprise and infrastructure SaaS (Software as a Service) solutions. Healthcare remains a durable second, as AI-driven diagnostics, workflow automation, and patient engagement tools grow in adoption.”
For a state-by-state look as well as other relevant data, click here.
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