BIP Ventures The State of Startups(SM) in the Southeast 2023 Report Reveals a Maturing Investment and Innovation Region

Interactive Research Highlights Simultaneous Decrease in Deal Numbers and Increase in Average Check Sizes

ATLANTA, Oct. 12, 2023 /PRNewswire/ -- BIP Ventures, the North American-focused venture capital division of BIP Capital and one of the Southeast's largest and most active VC firms, has released its annual The State of Startups^SM in the Southeast report. The groundbreaking 2023 report is a fully interactive experience that allows readers to click into graphs to gather the numbers behind the trends and take a deep dive into startup ecosystems for each state.

The State of Startups in the Southeast 2023 covers entrepreneurial and investment activities for the region from Q1 2018 through June 30, 2023. Recognizing the tumultuous environment of the past 5.5 years, the findings and insights are contextualized within significant macroeconomic impacts. 

The Southeast is Maturing
The report reveals that the Southeast startup environment is in a maturation period. Fewer deals are happening, but the dollar value for deals has increased materially. The average check size rose 22% between FY 2018 and YTD 2023 to $6.7M. There is a greater focus on follow-on deals and more established sectors. As a region, the Southeast startup investment activities resemble but tend to be less volatile than other major innovation markets, like the Bay Area, New York, and the Boston region.

"After navigating massive venture capital run-ups over the past couple of years, we've begun to see a return to earth for investment activity," said Mark Flickinger, General Partner and COO of BIP Ventures. "A lot has changed since we began producing this report, including how we define Seed deals and which sectors capture investors' attention. But what hasn't changed is that the Southeast region has a lot to offer to innovators and investors."

What's in the State of Startups in the Southeast 2023
The 2023 report examines four key points, all within the context of historical and economic impacts:

• The redefinition of startup stages and sizes and what that means for deal flow.
• Why the Southeast investment behaviors are trailing other innovation markets.
• How investors are navigating risk and reward by sector and stage.
• What sectors are accelerating innovation as a result of bigger average deal sizes.

"As has been the case for the past few years of producing the report, we see reasons for careful optimism," said Flickinger. "Investment partnerships are supporting founders through their entire scaling journey, and a focus on sustainable growth has replaced the 'growth at any cost' mentality that took root when money was cheap."

The first half of The State of Startups in the Southeast report examines innovation and investment trends for the region. The second half enables readers to dig into state-by-state data.

"Across most of the states in the region, we're seeing investment behaviors generally returning to pre-pandemic patterns," said Flickinger. "The important distinction, though, is that the dollars deployed well exceed pre-pandemic levels. Average Seed deal sizes are up 75% compared to 2018, and across all maturity stages, they are up 22%. The research confirms that deals are still happening, and good companies are still being funded. There has been a shift back to focusing on tried-and-true business fundamentals."

A team of experts across BIP Ventures performed the research and analyses for The State of Startups in the Southeast 2023. The team was led by General Partner and COO Mark Flickinger, who is one of the most established and innovative authorities in startup growth and investing in the U.S. Data was sourced predominantly from independent third-party entities and via proprietary BIP Ventures resources.

The full report details, including findings per state, can be found here.

About BIP Ventures
BIP Ventures, the North American-focused venture capital division of BIP Capital, is one of the Southeast's largest and most active VC firms. BIP Ventures partners with extraordinary founders to drive exceptional outcomes. Since 2007, BIP Ventures has invested in the success of B2B software and tech-enabled service businesses at all stages of maturity. In addition to capital, it supports entrepreneurs with access to infrastructure, acumen, and talent, resulting in category-leading companies. For more information, visit bipventures.vc or follow BIP Ventures on LinkedIn, Instagram, or X @bipventures.

Media Contact
Rachelle Kuramoto
BIP Ventures
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SOURCE BIP Ventures