Lance Weatherby’s post from earlier today titled Atlanta Cracks the Top Ten highlights the latest Brookings report on first round venture investments by region showing that Atlanta comes in at #10 (tied with Houston). Put another way, every company that raised venture money for the first time in 2014 was categorized by region and Atlanta came in the 10th spot with 39 deals. Just to put it in perspective, Silicon Valley had 630 first rounds of venture investment (not counting angel rounds, follow-on rounds, etc).
Here are a few thoughts on Atlanta and the number of startups venture funded annually:
- Cracking the top five is a long shot, but possible (the first four spots with Silicon Valley, NYC, Boston, and Los Angeles are locked down) as the regions in the top 10 are also working hard to grow their community (something miraculous like a Google-esque success story would be required to produce enough wealth to fund enough additional startups per year in Atlanta)
- Per capita, Atlanta is on the lower side for number of investments, but being the 7th largest metro region in the country bodes well for future opportunities
- Venture funded companies are only a piece of the startup region rankings — jobs created, success stories, IPOs, and exits are critical as well
- Not all venture fundings are for tech startups (e.g. VCs look for high growth companies but they aren’t limited to technology companies)
Doing well on national comparative rankings isn’t the ultimate goal for a startup community, but entrepreneurs love competing, and there’s strong community pride. With time and hard work, Atlanta will continually be a top 10 tech startup community.
What else? What are some other thoughts on Atlanta being in the top 10 for first rounds of institutional financing in 2014?