We’ve been following closely the Southern Startup Report, a well-curated email newsletter created by LookFar, a New Orleans-based software development studio. The following post from Jillian Firnhaber, director of special projects at LookFar, gives a good look back at 2016 for the ecosystem. We highly recommend subscribing to this twice-a-month email nugget!
We’ll always remember 2016 as the year of Pokemon Go, the Cubs World Series, and the wackiest ever presidential election. But how did the Southern startup community fare in 2016? We’ve put together a quick recap of the highs and lows from the past year.
Investment
999 Funding Deals |
$13.5 billion in Capital Invested |
113 Acquisitions over $50M |
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Top States
GEORGIA:
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TENNESSEE:
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GEORGIA:
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New Unicorn
The South’s herd of unicorns has now grown to 7. Knoxville-based Ministry Brands retained Bank of America Corp. to explore a sale of the company at a projected $1.5B valuation. Ministry Brands is backed by private equity firms Genstar Capital and Providence Equity Partners and provides SaaS tools for churches and faith-based organizations.
Major Deals
Apellis (Louisville, KY) – $47M
Finova (West Palm Beach, FL) – $52.5M
Magic Leap (Ft. Lauderdale, FL) – $793M
NextGear Solutions (Oxford, MS) – $11M
Pindrop (Atlanta, GA) – $80.8M
PrecisionHawk (Raleigh, NC) – $18M
Shipt (Birmingham, AL) – $20M
Notable in #NOLATech
| Local star Lucid continues to grow with expanded service offerings that make market research effective and easy. They partnered with NOLA Media Group to provide poll tracking for the 2016 Presidential Election. | Construction lien management software company zlien raised $6.3M in 2016. The eight year old company has touched more than 1.1 million construction projects and has more than doubled their staff – growing from 34 to 66 employees. | Social innovation accelerator Propeller received two major grants totaling more than $650,000. Executive Director Andrea Chen says grant money will be used to help underserved populations benefit from entrepreneurship. |
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In the News
MAY: Inaugural The Bridge: Atlanta Program Kicks Off
APR: Collision Conference Brings 4,000+ Entrepreneurs to New Orleans
JUN: North Carolina’s “Connections to Capital” Program Celebrates a Banner First Year
JUL: Chattanooga’s Dynamo Accelerator Welcomes Inaugural Cohort
AUG: Walmart Acquires Amazon Competitor Jet for $3.3B
OCT: Google Puts Brakes on Utility Program – No Fiber for San Antonio, Huntsville
NOV: InvestTN.co Program Shows Only 2.6% Return On State-Funded Angel Investments
What to Watch in 2017
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BIRMINGHAM
EDUCATION EMPHASIS
IPO FRENZY
2016 was a startup rollercoaster for the South, but by and large marked a year of progress for existing hubs, and the emergence of new ones in Birmingham and Chattanooga.
Startups have flourished and died; raised rounds and merged, but have proven beyond a shadow of doubt that even overlooked Southern cities can provide solid foundations for high-growth companies to grow and thrive from fledging ideas into billion-dollar dynamos.
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