Georgia’s total invested capital in 2016 was $1.75 billion, according to CB Insights – down 44 percent from 2015 – which is a greater decline than the national drop of 12 percent. Including venture capital, corporate venture, private equity, angel funding and other deals, the state’s past two-year total (2015 and 2016) surpassed $4.9 billion.
In 2016, seed/angel deals represented 50 percent of the deals – 30 deals – but only garnered $15.38 million in financing. Most financing dollars were found in the later rounds (Series C). The largest investment in 2016 was a Series C investment in Pindrop Security for $128.57 million by Andreesen Horowitz, according to CB Insights.
The limited investor VC/ PE community, a perceived risk-averse investment approach, and difficulty with early stage investment are the biggest weaknesses for Georgia to raise business capital.