Panoramic Ventures has issued its fifth annual report titled the “State of StartupsSM in the Southeast,” and it chronicles start-up activity throughout a nine-state region over a 66-month period from January 1, 2016, through June 30, 2021.
“The purpose of ‘The State of StartupsSM in the Southeast’ is to deliver a comprehensive overview of the venture capital and start-up ecosystem in this region,” the authors write. “This report aims to inform investors and entrepreneurs of emerging trends and highlight the area’s current and future opportunities, particularly with respect to understanding the maturation of the southeastern venture ecosystem and its capacity to generate strong returns.”
The Atlanta-based firm, founded this year by BIP Capital and Paul Judge, Co-Founder of TechSquare Labs, cites data from PitchBook to describe itself as the largest tech venture fund headquartered in the Southeast. The report covers activity in these nine states: Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee, and Virginia.
“To develop this report, we compiled data from multiple sources, including both primary and secondary research,” the authors write. “We maintain dialogs with leaders at numerous venture and growth equity funds and with professional service providers to the start-up ecosystem. We have also learned a great deal about the region directly from the entrepreneurs who reside here. When appropriate, we utilize independent third-party data aggregators to fill out the data across the time period being studied. Our own knowledge and experience in the region also play important roles in this year’s report.”
The report is full of data and analysis of the numbers. From an historical perspective, total investment in the nine states in the 66-month period was $48 billion in almost 10, 250 deals. The top two sectors across the region were Software-as-a-Service (SaaS) at $7.6 billion and biotech/pharma ($7.3 billion).
As far as the Volunteer State is concerned, the top three sectors are healthcare information technology (IT), SaaS, and FinTech. Those respectively accounted for 183 deals totaling $1.7 billion over the 66 months in healthcare IT and 162 deals worth $571 million in SaaS. FinTech data was not revealed.
Where does Tennessee rank among the nine states in investment capital deployed during the period? Right in the middle at $3.7 billion – four states above us and four below. Leading the pack is Florida at $12.9 billion followed by North Carolina at $12 billion, Georgia at $9.9 billion, and Virginia at $6.6 billion. Behind Tennessee are Kentucky at $1.4 billion, Alabama at $853 million, South Carolina at $802 million, and Mississippi at $50 million.
To access the report, click here.