Stories of Technology, Innovation, & Entrepreneurship in the Southeast

Knoxville Business News Tennessee Mountain Scenery Background
February 27, 2024 | Tom Ballard

Flippa ranks states on venture capital growth over a decade

Tennessee comes in at #39, while Wyoming, Idaho, and Alaska show the largest growth.

Flippa, a marketplace to buy and sell digital businesses, used data retrieved from the National Science Foundation to rank the 50 states based on venture capital (VC) growth over the past decade.

The analysis showed that Wyoming and Idaho experienced the largest VC investment growth. In the case of the Cowboy State – that’s the nickname for Wyoming, VC funding exploded from $10.8 million in 2012 to $792.6 million in 2022, and on a per-GDP basis, the level of VC investment in the state increased by nearly 58 times over that span. Neighboring Idaho ranks second (20.8X increase), while Alaska ranks third (16.8X increase).

The report notes that each of these states is smaller and tends to have relatively few VC deals compared to other states, which may contribute to the relative impact on GDP.

Three Southern states cracked the top 10. They were:

  • Louisiana at #6 with a 10.2 X increase;
  • Arkansas at #9 with a 9.4X growth rate; and
  • South Carolina at #10 with an 8.4X increase.

The rankings do belie the reality as each of those states grew significantly from a smaller starting point. For example, total VC funding in Louisiana in 2012 was $25.75 million. By 2022, it had grown to $324.45 million.

How did Tennessee rank? The Volunteer State placed #39 with a 2.3X growth rate, increasing VC funding from $329.44 million in 2012 to nearly $1.265 billion in 2022.

The study can be found here.


Don’t Miss Out on the Southeast’s Latest Entrepreneurial, Business, & Tech News!

Sign-up to get the Teknovation Newsletter in your inbox each morning!

  • This field is for validation purposes and should be left unchanged.


No, thanks!