North Carolina saw a drop in venture capital funding last year
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North Carolina startups raised $2.3 billion from investors in 2025, down more than 40% from the year prior, according to data compiled by Pitchbook.
- That was the 15th most among states, down from No. 7 in 2024.
Why it matters: North Carolina's growing startup ecosystem, especially in biotech and software, has been a major economic driver for the state.
- Higher interest rates, market volatility and a preference for AI companies have made it harder for some startups to raise money in recent years.
- But overall U.S. investment last year was the highest it has been since 2021.
Between the lines: North Carolina's large drop in funding volume was, in part, driven by its most valuable tech company, Epic Games, not raising money in 2025.
- In 2024, the video-game company raised a gobsmacking $1.5 billion from Disney.
Yes, but: Despite a down year, investments into North Carolina companies are 54% above where they were in 2015.
State of play: While 2025 investments were down in North Carolina, an annual report on the Southeast by BIP Ventures noted North Carolina's investment ecosystem is less volatile than other Southeastern states.
- "All of this stability reflects a mature, reliable startup environment with continued upside," the report noted.
Zoom in: Joe Mancini, who co-runs Front Porch Venture Partners, a Cary-based venture capital firm that invests throughout the Southeast, said he anticipates another solid year for North Carolina investment.
- His venture firm is in the process of raising capital for a third fund to deploy, according to financial filings, and will likely invest in around a dozen startups around the Southeast this year.
- "These are all super fast-growing ecosystems," Mancini said of places like the Triangle, Charlotte, Atlanta and Nashville.
- "The talent pool is deeper than ever. Early founders are spinning off trees of founders behind them," he added, "and they're really great places to start and run a business."
The big picture: California, far and away, dominates venture capital investments in the country.
- Startups based there raised $210 billion last year, a huge jump from the year prior and 62% of all venture capital raised in the country. That growth is skewed by several high-profile funding rounds by AI companies, Axios' Dan Primack notes.
Here were the 10 largest investments into North Carolina startups last year:
- Teamworks: Founded in Durham by former Duke football players, Teamworks raised a massive $247 million investment round this year from investors. The deal valued the company — which runs a software platform that helps sports teams manage players' schedules, nutrition and even their online brand — at $1.2 billion, according to Pitchbook.
- Tune Therapeutics: Tune, a biotech company based in downtown Durham, raised $175 million from investors last January. The company's therapies, which tweak gene expressions to neutralize diseases, are valued at $340 million, according to Pitchbook.
- Atsena Therapeutics: Atsena, another Durham-based biotech company, raised $150 million last spring to advance its gene therapy treatment that targets various kinds of blindness. The company is valued at $340 million.
- Restor3d: Based in Research Triangle Park, Restor3d raised $100 million from investors last summer to support its growing 3D-printed orthopedic implants business. The company is valued at $280 million.
- Petscreening: Petscreening, a Mooresville-based maker of pet policy management software for rental companies, raised $80 million from investors last spring. Founded in 2017, the company says its customers have more than 7 million rentail units.
- Eton Solutions: Morrisville-based software company Eton Solutions raised $58 million last summer. The company's main product is an AI-based wealth management platform for family offices and private-equity firms. It also has offices in Singapore and Dubai.
- Fastbreak AI: The creator of a software platform that does sports scheduling and tournament management, Charlotte-based Fastbreak AI raised $40 million from investors in November. The startup is valued at $199 million.
- Plantd: Based in Oxford, north of Durham, Plantd raised $33 million last year to fuel its carbon-negative building materials business, according to Pitchbook. The company transforms fast-growing perennial grass into durable materials and is now valued at $125 million.
- Well: Chapel Hill-based Well raised $30 million last year to expand the AI capabilities of its health engagement platform. The company's platform is meant to help individuals make healthy decisions and is valued at $387 million, according to Pitchbook.
- 410 Medical: 410 Medical, a Durham-based medical device company, raised $25 million from investors last year, according to Pitchbook. The company's main product, LifeFlow, quickly delivers blood and fluids to trauma patients.