The three venture-funding heavy states—California, New York, and Massachusetts—saw significant declines from 2021 to 2022, but funding soared in Florida, North Carolina, and Texas.
Key Details
- Florida had the most significant increase, with a 25% jump in venture-capital investment between 2021 and 2022—a $2.9-billion increase.
- North Carolina also had a large increase in funding, bringing in $1 billion more in 2022 than in 2021, marking a 24% increase for the state.
- Texas had a 1% increase from the previous year, but it is notable considering the state falls just behind the big three—California, New York, and Massachusetts.
Why it’s news
Venture capital had a great year in 2021 after suffering during the pandemic, with most states seeing massive growth coming out of 2020.
Most states had a massive uptick in funding for 2021, making it hard to see an increase from 2021 to 2022, but some surprising states came out with large surges in funding.
California, New York, and Massachusetts are typically the three forerunner states for the most venture funding, but in 2022 the big three saw massive declines. The states with the most funding were a surprise, with the top numbers being from Florida, North Carolina, and Texas.
Florida was the leader, with a 25% increase in venture funding from 2021 to 2022. In 2021, investors spent $7.8 billion on Florida-based startups over the course of 652 deals, according to Crunchbase data. In 2022, the number rose 25% to $9.7 billion in 601 deals.
Some of the state’s largest funding came from Fanatics, Citadel Securities, and Yuga Labs. Other funding went to industries including crypto and gaming, which have taken off considerably within the state.
Florida saw the biggest increase, but North Carolina also had a good year as the state saw nearly a $1 billion increase in venture capital funding.
The state received about $4 billion in venture capital via 285 deals in 2021 before growing to $4.9 billion via 234 deals in 2022, according to Crunchbase data.
Texas saw a 1% increase from 2021 to 2022, which is still significant considering most states saw massive declines, and the state falls just behind the big three—California, New York, and Massachusetts.
Texas saw a huge 105% jump from 2022 to 2021, taking funding from $5 billion to $10.3 billion, according to Crunchbase.
“It was an interesting year here,” says Silverton Partners managing partner Morgan Flager. “It was kind of a year of two halves. The first half was definitely a carry-over from 2021.”