Startup funding remains strong in the Triangle despite national slump
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While venture capital investments into startups continue to fall nationally, those in the Triangle continue to bring in more funding.
Driving the news: Startups in the Raleigh and Durham metro areas raised more than $414 million in the first quarter of the year, according to the most recent data from PitchBook.
- That's an increase of 34% from the last quarter and 61% year over year.
Why it matters: The numbers are another indication that the Triangle's startup ecosystem is resilient in the face of national declines, despite rising interest rates and the scare of Silicon Valley Bank's collapse.
- Investments into Triangle startups also hit a record high last year, Axios previously reported.
What they're saying: Scot Wingo, founder of the Durham mobile car-care startup Spiffy — which raised $30 million in the quarter — said the Triangle's diversity of industries has helped its growth.
- If software companies are having a down quarter, biotech startups might instead lead the way, said Wingo.
- "When one segment is under pressure (business-to-business software right now), then we have others that pick up the slack," he told Axios.
- He noted the Triangle also has fewer late-stage startups, a segment that has declined nationally for seven straight quarters.
The largest funding rounds in the first quarter were:
- Pathalys Pharma, a Raleigh-based biotech company making therapeutics for kidney disease, raised $150 million.
- Portside, a Research Triangle Park and San Francisco-based aviation software company, raised $50 million.
- Spiffy, the Durham mobile car-care startup, raised $30 million.
- Elo Life Systems, a Durham company making sustainable sweeteners, raised $25 million.
What's next: The second quarter is already off to a strong start: Teamworks, a Durham sports software company, raised $65 million from investors.
Wingo said it's still too early to say how the next quarter will fare — but he's expecting it to be a record breaker for his investor fund, Triangle Tweener Fund, with at least 15 local investment deals lined up.
- There's "still a lot of people and companies moving here," he said.