US Southeast surges ahead as other regions see VC funding decline

It seems everything is doom and gloom in the U.S. venture market, between startup layoffs and declining venture deal counts to an essentially moribund exit environment. But there are bright spots, one of which being the Southeast region, which is on track for its best year yet.

The Southeast region had its best quarter for funding on record in Q2. More than $5.1 billion was invested across 289 deals during the period, according to PitchBook. The first half of this year collected $9.1 billion, which puts the region on track to surpass last year’s full-year record of $15 billion.

This compares to declines across many of the more active regions in the first half of 2022, including New England, down 28% from H1 2021; the West Coast, down 10%; and the Mid-Atlantic, down 7%.