On the spot: The startups to watch in 2022 for venture capitalists in Raleigh, Durham

The biggest startup trends of 2021: Perseverance and high valuations.

We asked a group of Triangle venture capitalists to identify trends they saw in 2021, and Art Pappas, founder of Pappas Capital, said a big one was startups “finding unique ways to persevere through the pandemic.” The firm's sweet spot of biotech was particularly hot. Pappas said early stage, in particular, saw major opportunities.

“In biotech, the volatility of the public markets has made earlier stage private investments more appealing to some investors, which seems to reinforce smaller early-stage rounds,” he said.

David Gardner, founder of Cofounders Capital, said the trend extended past biotech. A big takeaway from 2021 is “larger seed rounds,” he said. But challenges are also takeaways – including recruiting. Gardner saw that, in 2021, many investors were looking for higher ARR – annual recurring revenue – thresholds before A round investments.

We put investors on the spot, asking local venture capitalists for five startups we should be watching – including at least one that's outside their portfolios. Here’s what they said

Art Pappas, founder of Pappas Capital:

David Gardner, founder of Cofounders Capital:

Jason Caplain, co-founder of Bull City Venture Partners:

Mitch Mumma, co-founder of Intersouth Partners:

John Cambier, managing partner, Idea Fund Partners: