A new report from a Silicon Valley startup that focuses on in-depth analysis of venture capital and angel funding says that the Raleigh/Triangle market is No. 1 in startup deals over the past year among markets outside of the Valley, Boston and New York. And this is NOT a one-year flash-in-the-pan as a four-year review of data shows.

The report examines the “Best of the Rest” in numerous categories, and the Triangle does very, very well.

According to Mattermark in a report headlined “Where to Get Funded,” the Triangle produced more than 45 deals last year. Recent venture data from PricewaterhouseCoopers in the MoneyTree report and Dow Jones Venture have documented that 2015 was a strong year for North Carolina with the best funding year since 2000 at well north of $600 million. And a sell-out VC preview for 2016 event from Bull City Ventures showcased how more investors are coming to the Triangle to make deals.

A couple of data points demonstrate the breadth of what’s taking place here, especially when in these two categories the big three markets are included:

  • Raleigh’s average growth rate is No. 1 at more than 20 percent per year.
  • Based on an index of various data points, Mattermark says that Raleigh’s growth rate since 2012 (150 percent) is second only to Kansas City (200 percent).

Here’s another interesting one:

  • The Triangle is No. 11 overall at an estimated $800 million in angel and Series A/B capital since 2012. And 2012 was an awful year for the area as well as the state. So the Triangle is trending for investment dollars.

Now who would have really EVER expected that a decade ago and especially after the 2012 debacle?

Seeing the Triangle do well in the Mattermark report is not a surprise, but it is encouraging to all those entrepreneurs and economic developers who may finally be realizing a long-sought goal:

Bringing the kind of national attention to the market that will lure outside investors. Virtually all the big money goes to the Valley, the Bay and the Big Apple. Most of the big money is there. But the deal makers and the dollars are coming South as this data indicates.

And since Mattermark is focusing heavily on angel/early stage money, that gives hope to entrepreneurs who need cash to turn a startup into an emerging company and then (perhaps, but not in all cases) an exit.

RTP vs Austin, others

However, the region’s performance is impressive when one compares how this market performs compared to competitive startup spots such as Austin for “Best of the Rest” outside of the big three market destinations for capital.

In fact, the Triangle’s growth has surged since 2012 when there were fewer than 15 deals, according to Mattermark.

The booming success of companies at startup hubs HQ Raleigh and the American Underground – now home to more than 400 (can you believe that??!!) startups – combined and with other hubs such as First Flight Venture Center flourishing certainly show the region’s startup muscle is building into a tremendous eco system.

The Mattermark data certainly reinforce the notion that the Triangle is among “The Rise of the Rest,” as noted by AOL founder Steve Case who is now making deals locally (and elsewhere in N.C., we should add.)

Why come to RTP?

“For those of you readers who want to escape Bay Area rents, or just want to stay closer to your hometown, here is the short answer,” Mattermark reported.

“Although the dollar amount is kind of arbitrary, let’s say one wanted to be in a city that has an average of $250 million or more annual investment in early stage companies, has general upward momentum in deal making activity over the past few years, and has had a particularly high rate of investment activity in 2015. Surprisingly, the only three regions that meet all the criteria are Seattle, Austin, TX and the Denver/Boulder area. However, if you’re in the mood to compromise on one of those, places like Nashville, TN, Raleigh, NC, Washington, D.C., and Salt Lake City, UT are promising alternatives.”

Read the full report at:

https://mattermark.com/where-to-get-funded-in-2016-that-isnt-silicon-valley/

The entrepreneurial ecosystem in the Triangle will most likely find this a very heartening report, indeed.