RESEARCH TRIANGLE PARK – The Council for Entrepreneurial Development (CED) released its annual Venture Report of equity funding today, reporting that North Carolina-headquartered companies raised $4.2 billion in 2022, a slight decrease from 2021 but still the second-highest year on record.
In 2021, CED reported that NC-hq’ed companies raised $4.6 billion, the highest since CED began tracking investments in 2000.
According to the report released today, the major difference in 2022 was fewer large deals (defined as over $50 million).
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The report tracked investments from 269 separate transactions—and 174 of those transactions were under $5 million.
“This bigger pool of companies at the seed stage will create a wider funnel for potential large locally headquartered global companies down the line,” said Hunter Young, Head of Capital at CED, in the press release.
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The report also described that, on a national scale, North Carolina’s “small decrease” was “impressive compared to some of the larger decreases across the county.”
According to the report, a total of 246 companies—25 more than were reported in CED’s 2021 report—received investment from 325 different investor groups.
93 of the investors were from the West Coast, making that region the single biggest source of funding for NC companies. 55 of the investors were from North Carolina.
“While out-of-region funds make up a significant portion of the dollars raised by North Carolina companies, an equally interesting occurrence is the growth of the local investor base,” said Young in the press release.
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2022 Raises Across Sectors
According to the report, the tech sector raised the vast majority of funds, totaling over $3.2 billion for the year. Life science companies raised $833.9 million, cleantech/greentech raised $100.6 million, advanced manufacturing raised $52.4 million, and “makers” raised $27 million.
“One of the strengths of our ecosystem in North Carolina is it has multiple industry sectors all growing at the same time,” said Jay Bigelow, Head of Entrepreneurship at CED, in the press release.
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Venture Connect 2023 attracts record-high 180 startups
Later this month, a record-high 180 startups will present at Venture Connect 2023, CED’s signature annual event. President and CEO Kelly Rowell shared that CED received 225 applications this year—more than ever.
It’s also the event’s largest geo-footprint to date; while most companies that applied are headquartered in the southeast, there were requests from California, New York, Tennessee, Georgia, Florida, Virginia, South Carolina, Europe, and Asia.
The 180 chosen startups represent the following industries:
- 28 Biotech/Therapeutic
- 21 Digital Health
- 19 B2B Saas
- 15 Medical Device
- 12 eCom, 8 Agtech
- 6 CleanTechs
- 8 Edtech
- 8 HR/future of work
- 6 Fintech
- 6 IOT/Semiconductor/Advanced materials
- Remaining in Supply Chain/Logistics, CPG brands, Consumer Tech, and Cannabis Wholesale Supply.
“Venture Connect celebrates active innovation in our community,” said Rowell in an interview. “All those invested in building a vibrant ecosystem where startups can thrive should try and make it out.”
The Summit will end with a tailgate celebration, and community members can elect to purchase tickets for the full two-day Venture Connect or just for the celebration.
For more information about Venture Connect, visit cednc.org/venture-connect.
