startup atlanta: 2016 state of the startup ecosystem
TRANSCRIPT
FOUNDING SPONSORS
CORPORATE SPONSORS
STARTUP SPONSORS
2016 STATE OF THE STARTUP ECOSYSTEM
THE STATE OF THE ATLANTA STARTUP ECOSYSTEM
$836MVC INVESTMENT IN ATLANTA
Source: "2015 Venture Investment by MSA", National Venture Capital Associationhttp://nvca.org/?ddownload=2745
$0.00
$225,000,000.00
$450,000,000.00
$675,000,000.00
$900,000,000.00
2013 2014 2015
Source: National Venture Capital Association / PricewaterhouseCoopers˝Data: Thomson Reuters
VC INVESTMENT INCREASED 70% FROM
2014 TO 2015
Kabbage $135M Late Stage
Pindrop $75M Series C
Rivermend $60M Series A
Rubicon $56M Late Stage
Outsystems $55M Late Stage
Ionic $40M Series C
Salesfusion $13.5M Series B
Salesloft: $10M Series A
Roadie $10M Series A
Bastille $9M Series A
FullStory $9M Series A
Terminus $7.5M Series A
Springbot $6M Series B
Sarvint $6M Series A
NexDefense $5.6M Series A
Groundfloor $5M Series A
Membersuite $4.5M Series A
Social123 $4.25M Series A
Predikto $4M Series A
Luma $3.5M Seed
HubLogix $3.5M Series
Stratacloud $3.4M Series A
Revegy $3M Series A
Rescour $2.9M Seed
Gather $2.5M Series A
Saleswise $2.5M Series A
CallRail $1.9M Series A
Partpic: $1.5M Seed
WearVR $1.25M Series A
Hux $1.25M Seed
B2C˝18%
B2B˝82%
B2B COMPANIES RECEIVED 82% OF INVESTMENT.
B2C COMPANIES RECEIVED 18%.
FinTech˝52%
Other SaaS˝8%
Security˝20%
Sales/Martech˝20%
TRADITIONAL B2B CLUSTERS SUCH AS FINTECH, SALES/MARTECH, SECURITY AND B2B SAAS REMAIN A STRENGTH.
On-Demand˝12%
AI˝2%
Wearables˝6%
VR˝1%
Hardware˝17%
Healthcare˝63%
B2C INVESTMENT WAS ACROSS DIVERSE RANGE OF SECTORS.
THE 5 KEY INGREDIENTS TO A STRONG STARTUP
ECOSYSTEM
DENSITY
TALENT CULTURE
REGULATORYFUNDING
DENSITY
ONE OF THE STRONGEST INDICATORS OF THE ECOSYSTEM'S GROWTH IS THE INCREASE IN DENSITY & CLUSTERING.
STARTUP HUBS IN 2013
STARTUP HUBS TODAY
WE'RE SEEING A SHIFT IN CULTURE WITH INCREASED FOCUS ON COMMUNITY. HOWEVER, LOCAL VC IS STILL PERCEIVED AS RISK-AVERSE.
CULTURE
OUR REGULATORY ENVIRONMENT IS STABLE & SUPPORTIVE.
REGULATORY
CHOOSEATL IS HELPING TO ATTRACT AND RETAIN TALENT IN THE REGION. WE'VE ALSO SEEN STRONG GROWTH IN SKILLS-BASED EDUCATION.
TALENT
WHILE FUNDING LAST YEAR WAS UP SIGNIFICANTLY. HOWEVER, ENTREPRENEURS STILL IDENTIFY FUNDING AS THE BIGGEST ISSUE IN THE ECOSYSTEM.
FUNDING
2016 STATE OF THE STARTUP ECOSYSTEMHOW WE COMPARE
1 San Francisco Bay Area $21,043,061,400
2 New York $6,981,436,400
3 Silicon Valley $6,238,491,900
4 Boston $5,581,687,300
5 Los Angeles $4,481,612,100
6 Seattle $1,171,961,700
7 San Diego $1,166,538,700
8 Chicago $1,103,907,600
9 Washington DC $923,988,400
10 Atlanta $836,057,800
11 Austin $739,989,300
12 Denver $540,260,200
13 Philadelphia $516,330,500
14 Baltimore $445,075,600
15 Provo $444,730,300
WE ARE A TOP 10 CITY FOR STARTUPS
2016 STATE OF THE STARTUP ECOSYSTEMMAPPING INVESTMENT
VC INVESTMENT IS HIGHLY CONCENTRATED IN KEY
U.S. REGIONS
80% OF VC INVESTMENT IS CONCENTRATED IN THREE REGIONS
TO BECOME A TOP 5 STARTUP CITY WE NEED
TO GROW BY 500%
2016 STATE OF THE STARTUP ECOSYSTEMPREVIEW OF SURVEY FINDINGS
WHAT ONE WORD BEST DESCRIBES THE ATLANTA
STARTUP COMMUNITY?
GrowingNasce
nt
Potential
Thrivingraw
B2B
heav
y
Immature
Pregna
nt
Overcrow
ded
scrap
py
Accelerating
optim
istic
Progress
Disso
nantSafe
Fluid
Roaring
Hustle
Fragmented
Old
boy
netw
ork
growth
Isolated
Lame
Tries
Impro
ving
Bootstapped
Hila
rious
disjointede
Exclu
sive
Vibrate
Fractu
red
Booming
Env
y
young
Burgeoning
Early
Nurturing
Talent
Unimpressive
dorkyBud
ding
Welco
ming
web
HOW WOULD YOU RATE THE ATLANTA STARTUP
COMMUNITY?
We’re just not there yet˝26%
We’re a top 10 city for startups˝61%
We’re a top 5 city for startups˝13%
74% RATED ATLANTA AS A TOP 10 OR BETTER STARTUP SCENE.
DO YOU CONSIDER THE ATLANTA STARTUP
COMMUNITY DIVERSE?
Not diverse˝54%
Yes, it's diverse˝46%
ONLY 46% CONSIDER THE ECOSYSTEM DIVERSE.
WHAT IS THE BIGGEST CHALLENGE FACING
FOUNDERS IN ATLANTA?
Mentors
fundingca
pital
wins
support
Startup
events
social
Seedearlysta
ge
experienced
Customers
talent
lackpeopleRaising
access
Finding
one
culture
low
Getting
founders
competition
solving
similar
ground
paying
clients
really
strong
Distribution
National
500
herd
mentality
wait
else
invest first
<>
market
fit
scaling
cohesiveness
Internal
theater
Overcrowdingpages
step
midcareer
Fortune
Plugging
network
karmiclike
â€
ethos
interests
issues
space
use
properly
grow
flourish
Bar
excellence
design
Investors
product
business
Quality
moneycapital
location
Cliquey
riskaverse
WHAT ONE THING DO WE NEED MORE OF IN THE
ATLANTA STARTUP COMMUNITY?
time
Money
mentors
startups
Diversity
FundingInvestors
Capital
Winners
Women
less
Wins
companies
Support st
artup Pitch
Competitions
fundingincubation
volunteering
aversion
help
upandcomers
Successfu
l
vs
reinvesting
next
generation
need
corporate
interaction
judgment
Atlantans
derision
PR
losing
folks
cities
Cooperation
Diverse
markets
webapps
IoT
fintech
partnerships
Successes
B2C
investment
prerevenue
Doers
Shuttingfuck
Storytelling
suspicion
community
events
Social
Seed
serious
deploying
earlystage
Intl
accelerators
addition
TechStars
CEOs
Notoriety
Innovative
Impact
Experienced
Customers
willing
spend
Civic
innovation
bigger
experimental
Venture
Freelearning
initiatives
reaching
colleges
talent
Designdriven
Pipelines
mainstream
exposure
risk
Visibility
WHAT LOCAL STARTUP SUCCESS STORY ARE YOU
MOST PROUD OF?
Mailchim
pKabbage
Pindrop
Pardot
YikYak
AirWatch
VillageDefe
nse
CallRail
Sa
les
fus
ion
Coke
Ca
rdly
tics
Sinova
Lum
a
SecureWorks
FullStory
Ho
me
De
po
t
Pindrop Security
Clo
ud
Sh
erp
as
mail chim
p
MailChimp
Monsieur
Ionic Security
InterContinental Exchange Atlanta Streets Alive
WHAT LOCAL STARTUP ARE YOU MOST EXCITED
ABOUT IN 2016?
2016 STATE OF THE STARTUP ECOSYSTEMTHE INNOVATION ECOSYSTEM
188,389 JOBS IN THE INNOVATION CLUSTER
Source: BLS QCEW data by quarter, processed and analyzed by ˝ARC Research and Analytics
160,000
167,500
175,000
182,500
190,000
2013 2014 2015
Source: BLS QCEW data by quarter, processed and analyzed by ˝ARC Research and Analytics
SINCE 2013 INNOVATION JOBS HAVE GROWN 12.5%
INNOVATION JOBS ARE GROWING 1.7X FASTER THAN OTHER CLUSTERS
ATLANTA'S CORPORATE LEADERS CONTINUE TO INVEST IN INNOVATION
CORPORATE INNOVATION CENTERS