Panoramic Ventures Releases 6th Annual The State of StartupsSM in the Southeast Report

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Panoramic Ventures

Oct 12, 2022, 08:00 ET

Bullish Outlook Amid Industry Headwinds
On Heels of Record-Setting $11.5 Billion Invested in First Half of 2022

ATLANTA, Oct. 12, 2022 /PRNewswire/ -- Panoramic Ventures, one of the largest and most active venture capital firms in the southeastern United States, announced today the availability of its The State of StartupsSM in the Southeast 2022 report, which delivers a comprehensive overview of the venture capital and startup ecosystem in the region. This sixth annual report takes an in-depth look at startup activity in the southeastern United States over the five-and-a-half-year period from January 1, 2017, through June 30, 2022. The free report gives investors insight into where companies are being built, what problems founders are solving, and equips entrepreneurs with data to identify emerging investment trends as they execute fundraising strategies. Overall, $65.9B has been invested in southeastern companies since 2017, representing 10,784 investments.

This year's report examines in detail four trends in the Southeast, including a record-setting trajectory for deployed capital, continued growth in average deal size, new heights in post-money valuations, and an evolution in how the region has come to define investment rounds.

Additional key findings from the The State of StartupsSM in the Southeast 2022 report include:

  • $6B in capital was deployed across the region in Q2 2022, compared to $5B in Q2 2021
  • More than 6x increase in capital deployed annually from 2012-2021 ($3B to $19B)
  • Over the 11-year period from 2012-2022, the average check size increased over 300%, from $3M in 2012 to $13M in 2022
  • Median post-money valuations have increased approximately 108% from 2017-2022

"Despite a well-documented deceleration of venture investing in the first half of 2022 in the traditional innovation hubs (the Bay Area, New York, and Boston), deal activity in the Southeast is robust and remains relatively fast-paced," said Mark Flickinger, Chief Operating Officer and General Partner of Panoramic Ventures. "With foundationally sound businesses and sustained investor interest, the Southeast continues to exhibit appreciation across many of the metrics that we track."

State-Specific Highlights
Notable trends and observations by state include:

  • Alabama: Deal activity and capital deployed has slowed over the past 18 months
  • Florida: With the emergence of a cryptocurrency hub in Miami, FinTech companies unseated Media for the top spot for investment
  • Georgia: 2021 was a record-setting year with $3.4B deployed; 2022 is looking strong with $1.7B deployed through the first six months of the year
  • Kentucky: Biotech/Pharma remains the highest sector of investment for the fourth year in a row
  • Mississippi: The startup ecosystem has picked up over the past year, with 2021 dollars invested ($51M) outpacing all of 2017-2020 combined ($36M)
  • North Carolina: Building off of a record-setting 2021 ($4.8B invested), 2022 is shaping up to be even stronger ($3.4B invested through June 2022)
  • South Carolina: Driven by an increase in large deals, the first six months of 2022 have already set a new annual record for dollars deployed
  • Tennessee: Healthcare IT remains the highest sector of investment over the five-and-a-half-year period
  • Virginia: The first half of 2022 has been strong and is on pace to surpass 2021's record of $3.2B invested

"It's clear the foundation of the Southeast has been built to weather the ebbs and flows of venture investing, providing an opportunistic hub for entrepreneurs and investors alike," said Flickinger. "The Southeast is no longer an 'emerging' venture capital hub just for early-stage companies but rather a mature region with accessible capital for investment-worthy companies across all stages."

Compilation and analyses for the report were conducted by a team of experts across the firm, led by Flickinger, who is one of the region's most established and innovative leaders in the area of startup investing. Multiple data sources were used to create this year's The State of StartupsSM in the Southeast report, including interviews with key players at multiple funds, interviews with entrepreneurs, and independent third-party data.

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

About Panoramic Ventures

Panoramic Ventures is a venture capital firm based in Atlanta that partners with extraordinary founders to build category-leading companies. Panoramic invests in B2B software and tech-enabled service businesses at all stages of maturity, from pre-seed and seed to growth and scale, giving more entrepreneurs access to capital to build leading tech companies. For more information, visit www.panoramic.vc or follow Panoramic Ventures on LinkedIn, Instagram, or Twitter @panoramicvc.

Media Contact:
Jennifer Solomon
Carabiner Communications
[email protected]
516.680.8927

SOURCE Panoramic Ventures