Jan 12, 2023 - News

Triangle startups raised $3.4 billion in 2022

Data: PitchBook; Chart: Axios Visuals

Despite a national slowdown, investments into Triangle-based startups hit a record high in 2022, according to a new report from the venture capital tracking firm PitchBook.

Why it matters: The Triangle is emerging as a tech hub thanks to standout companies like Epic Games and a growing concentration of tech talent that has attracted the likes of Google and Apple to open offices here.

  • But growing the area's ability to attract investors is needed to help homegrown startups flourish — and keep new companies emerging.

Details: Triangle startups raised $3.4 billion last year, up 16.5% from 2021, according to PitchBook's figures.

  • A large portion of that went to Cary-based Epic Games, which tapped investors for a massive $2 billion round last year. Without Epic's total, 2022 would have trailed totals in 2021 and 2020.

What they're saying: "We've seen steady increases [in investments] year over year for the last three to four years" in the Triangle, Brett Cox, a research manager at JLL, recently told Axios.

  • "That is a positive sign. It means the market is maturing … and that some companies are gaining a stronghold as corporate headquarters here."

Yes, but: The number of deals declined both nationally and in the Triangle in the last three months of the year, which PitchBook's analysis blamed on inflation and rising interest rates.

What we're watching: Jason Caplain, a general partner at Bull City Venture Partners, said he believes investors will be more hesitant to invest in companies this year.

  • "Unfortunately, I don't think this year is going to be a banner year, both nationally and locally" for investments, Caplain told Axios. "The bar has gone up for what [investors] are looking for."
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