Seven battleground states are likely to hold decisive votes to choose the next US president in next week’s election.
But narrow politics is not the only thing the group has in common. From a startup funding perspective, battleground states like Pennsylvania, Michigan, North Carolina, Wisconsin, Georgia, Nevada, and Arizona are all mid-sized companies.
In other words, the biggest hubs of venture investment don’t exist in battleground states. They are California, Massachusetts, and New York, all solid blue states.
Similarly, battleground states are not “venture deserts” where large funding rounds rarely occur. This category includes states with small populations and those without large metropolitan areas or strong research universities.
In fact, the battleground states are all home to prominent venture-backed companies. Below, we’ll take a look at what each startup’s ecosystem currently looks like.
pennsylvania
Pennsylvania, the most volatile of the battleground states, is perhaps the most intensely contested of this election year, as evidenced by the huge spending on both sides and the schedule of events there. .
From a venture funding perspective, the Keystone State also stands out for having two metro hubs (Philadelphia and Pittsburgh) separated by 300 miles and is best known for launching a wide variety of startups. Masu.
As I discussed in my Super Bowl-themed article last year, Philadelphia excels in biotech and health care. Some of the notable startups and one-off startups based in the region include Spark Therapeutics and Dbt Labs. Meanwhile, Pittsburgh is known for robotics and self-driving cars and is home to Argo AI and Duolingo.
michigan
Of course, Michigan has close ties to the auto industry, reflected in its most famous venture-backed companies.
Rivian, the electric car maker that made the year’s biggest public offering in 2021, is perhaps the best-known company, even if its stock trades at a fraction of its former high. Other well-funded Michigan startups include self-driving car technology developer May Mobility and battery company Our Next Energy.
So far this year, Michigan-based companies have raised about $580 million in seed-to-growth stage funding, according to Crunchbase data.
Eastern Michigan remains the center of the state’s startup ecosystem, with the highest concentration of companies in Ann Arbor, Detroit, and points in between.
north carolina
From biotech to fintech to gaming, North Carolina boasts a deep talent pool in countless fields. Nevertheless, when it comes to private funding, one company tends to dominate the headlines: Epic Games.
Cary, North Carolina-based Epic has raised nearly $8 billion in private funding over the years, including a recent $1.5 billion corporate round backed by Disney. Like many of the state’s other high-tech companies, it is based in the Research Triangle region, home to Duke University and the University of North Carolina at Chapel Hill.
North Carolina companies, excluding Epic, have raised $1.34 billion in seed funding through growth loans so far this year, according to Crunchbase data. Top funders include data integration provider CData Software, drug developer Pathalys Pharma and HR platform Oyster.
georgia
With a population of more than 6.3 million people, the Atlanta area is currently the sixth largest metropolitan area in the United States. In other words, there is a lot of talent for startups.
Even so, Georgia has not historically been a significant contributor to venture funding. That’s the case again this year, with just under $700 million paid out to Peach State businesses in each phase, according to data from Crunchbase.
Still, we’re seeing some good sized rounds. Companies that have completed such financings this year include several Atlanta companies, including pool cleaning robot maker Aiper, payroll platform OnPay, and EV charging provider EnviroSpark.
arizona
Arizona is known for attracting large numbers of Californians relocating. But they haven’t brought in much venture capital.
So far in 2024, the Grand Canyon State has raised just over $550 million in startup equity funding at each stage. As a result, this year is expected to be the lowest annual sales in years, due in part to fewer large deals related to clean technology and real estate.
Virtuous Software, a nonprofit fundraising platform provider, secured its largest round of the year with $100 million in funding in September. Other big deals include a Series D with biotech Nectero Medical and a Series A with battery developer Sion Power.
wisconsin
Wisconsin is known as America’s Dairyland, not America’s Startupland. Nevertheless, the state has a fairly diverse startup scene, with well-funded companies in sectors ranging from e-commerce to biotech.
Among the best-capitalized companies is Madison-based shopping rewards app Fetch, which has raised more than $550 million in equity funding this year and secured $50 million in debt financing. did.
The other company is Shine Technologies, a Janesville-based nuclear medicine and fusion technology developer that has raised more than $500 million in venture funding and grants.
So far in 2024, Wisconsin-based startups have raised just over $287 million in venture funding and grants, according to Crunchbase data. The largest round was a $55 million Series C in January for Madison-based Elephas, which is developing an advanced imaging platform to predict response to immunotherapy.
nevada
Nevada has the smallest startup ecosystem among battleground states. So far this year, only about $121 million in seed-through growth loans have been disbursed to companies headquartered in the state, according to Crunchbase.
But while small, Nevada’s startup industry is very diverse, with companies ranging from clean tech and electric vehicles to fraud detection, fintech and housing. Among Nevada startups, Redwood Materials, a Carson City-based battery recycling startup, was the biggest raiser, raising $3.8 billion in debt and equity funding to date. We are procuring it.
Funding does not seem to be a predictor
Looking at the projections for how battleground states will shake out this year, it’s clear that no one is saying for sure that statewide venture funding will play a big role. Candidates prefer to talk about things like grocery prices rather than Series A valuations. And as far as I’m concerned, that’s probably a good thing.
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Illustration: Dom Guzman
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