Key Finding 5: Total Invested Venture Capital - Georgia

Capital

In 2017, Georgia rose to a top 6 U.S. market (from 9 in 2016) for invested venture capital. From 2016 to 2017, Georgia’s invested venture capital grew by 113% to reach $1.68 billion, according to the PwC MoneyTree report – which is significantly greater than the 7% total U.S. venture capital growth during this same period.

Georgia’s share of the U.S. venture capital market was 2.3% percent. The Internet and Software sectors led the venture capital investment in Georgia -- accounting for 64 of the total 79 2017 deals (81%) and 89 percent of the dollars.

Key insights:

  • Seeing bigger deals: While overall VC capital is increasing in Georgia, the number of deals did not increase at all indicating bigger deals. In fact, the average VC-backed deal size in Georgia went from $9.67M in 2016 to $21M in 2017. US VC-backed companies saw $71.9B invested in 2017 across 5,052 deals. Funding was up 17% from 2016, but deals fell 4%, declining to the lowest annual total since 2012.
  • Most VC investment is in later-stage rounds: Almost 70% of total GA invested venture capital was in later stage deals with more established and proven companies. One of the biggest deals of the year occurred in Georgia when Bain Capital invested a late stage round of $301M in Navicure, a Healthcare IT company.

Start-up VC financing is limited. Seed/Angel/Round A funding only represented 6.5% of total GA venture capital investment in 2017. In 2017, the bulk of seed/early stage investment occurred within the financial services, Internet, and mobile sectors.

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