Tampa startup hub Embarc Collective and Build In SE, a Tennessee-based network aiming to increase startup visibility across the Southeast, have teamed up again for the 2024 Southeast Capital Landscape Report.
The report spans 10 states and found a 38% surge in new firm creation, more than doubling the number of firms since the report’s inception in 2019. Since the last report in 2021, Florida is leading growth concentration with 99 venture firms across 18 cities, a 25.3% increase from its previous 79 firms in 11 cities, according to the report.
Embarc Collective VP of Platform Allie Felix said the report, which began in 2019, stemmed from the need for a comprehensive open-sourced database to provide transparency around the investors' circuit.
“Historically, there are resources like CrunchBase or PitchBook, but some of those can have a paywall,” Felix said. “They're not necessarily focused on data accuracy and being able to fine-tooth comb resources on who are the funds and investors that exist in our markets, and how do we make sure that we can allow companies to tap into those networks and ultimately trying to land fundraising rounds to scale their companies.”
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The report said an influx of tech companies and talent from traditional hubs like Silicon Valley and New York has gained momentum in the Southeast. Established firms like Edison Partners, PivotNorth Capital and Company Ventures have expanded to the Southeast.
“A lot of it has to do with the continued tech migration and the talent that's relocating here,” Felix said.
The Florida Opportunity Fund is also a factor as a state-funded investment fund, led by Orlando-based Deep Work Capital, assuming fiduciary duties to execute the $150 million fund dedicated to supporting Florida-based entrepreneurs and startups.
“They haven't yet invested in an Embarc member company, but they’ve been a great partner for us regardless,” Felix said. “The fact that our state is deploying capital into startups is so critical to say that we as a region, as a state, care about the growth and success of high-growth technology companies.”
Felix said that while it is still “early days” in the community, the key to making the next Tampa-based ReliaQuest is more widely accessible capital and firms.
“We've got great folks at the seed stage and the growth equity stage, but if you think of pre-revenue investors, true angel investors that are willing to write small checks into companies that are just starting out ... startups determined with a clear vision to build a scalable company, those founders need to find accessible angel investors or early-stage capital opportunities,” Felix said. “That's a big gap that I found in the Tampa Bay market.”
To view the full report, click here.
