Whether you know it or not, the Southeast is well on its way to becoming a serious hub for startups and investors. From Richmond to Atlanta, the opportunity to make promising investments and watch them thrive is becoming more and more common. The Southeast offers an attractive combination of lower costs, a growing influx of talent, and a strong support network for businesses who want to scale.

By exploring current investment trends and taking a closer look at this business-friendly region, we hope we can help give you an accurate portrait of what makes the Southeast so appealing to startups, investors, and angel investment groups like us.

What Makes the Southeast So Attractive to Startups and Investors?

More than just a hotspot for barbecue, country music, and vibrant cities, the Southeast is also a great place to start a new company. Top-tier universities and a burgeoning ecosystem of incubators and investors make it a premier destination for entrepreneurs and investors alike, but let’s take a closer look at the local investment landscape:

Talent Tells the Tale

The Southeast has become a magnet for talent, partly due to the rise of remote work. Professionals seeking more affordable lifestyle options are flocking to cities like Charlotte, Atlanta, and Richmond, where they can enjoy lower living costs without sacrificing career opportunities. Tech professionals, creatives, and entrepreneurs are eager to build a foundation in locations that invite innovation and celebrate fresh, unique ideas.

The region also boasts a strong pipeline of skilled workers emerging from top universities such as Georgia Tech, the University of North Carolina, and the University of Virginia. These institutions produce highly educated graduates in fields like technology, engineering, and business, feeding the Southeast’s growing workforce with undeniable talent.

Lower Costs

One of the primary reasons the Southeast is attracting startups and investors is the region’s lower cost of living and the general affordability of doing business. Compared to cities like New York, San Francisco, or Boston, the Southeast offers significantly more affordable housing, office space, and daily living expenses. This affordability allows entrepreneurs to stretch their budgets further, reducing overhead costs and clearing the way to focus on growth and innovation.

For investors, the lower cost of doing business translates to longer runways for their capital, increasing the potential for returns. Major cities in the Southeast provide competitive infrastructure, a strong talent pool, and an emerging tech ecosystem, all without the steep price tag associated with traditional startup hubs.

Strong Ecosystem

The Southeast’s entrepreneurial ecosystem provides everything startups need to succeed, making it an ideal place to launch and scale a business. Many of the cities we listed above are home to a variety of incubators, accelerators, and co-working spaces that foster collaboration and innovation. Atlanta Tech Village, located in Atlanta, GA, is a great example. This entrepreneurial haven boasts co-working spaces, networking events, and more in a collaborative, growth-oriented environment.

Plus, the Southeast benefits from government-backed programs and tax incentives that further nurture startup growth. These initiatives — ranging from tax credits for research and development to workforce training programs — create a business-friendly environment that helps startups thrive and scale, all while keeping operational costs manageable. In Georgia, for instance, the Georgia Film Tax Credit has attracted a booming film and entertainment industry, while the Georgia Research Alliance helps accelerate the commercialization of technology from universities.

Understanding the Startup Hub

The Southeast’s reputation as a startup hub is hard to refute. As more entrepreneurs, investors, and media outlets spotlight the region, it’s gaining recognition as a legitimate alternative to traditional startup cities like Silicon Valley. With growing awareness comes a sense of local pride, and cities like Atlanta, Raleigh, and Savannah are leading the charge. We like to think of it as a new “investment club.”

Entrepreneurs in the Southeast are benefiting from an expanding ecosystem and contributing to its “spark” or “spirit,” helping to create a self-sustaining cycle of innovation and growth. The region’s increasing prominence in the startup community is a testament to the wealth of opportunities available for businesses looking to launch and scale in an environment that’s ready to support them.

Here are some more specific investment trends by state:

South Carolina: With industries such as information technology, automotive, and aerospace offering promising investment opportunities, South Carolina is a great place for angel investors to land. In fact, in 2023, this state announced $9.22 billion in capital investment.
Florida + Tennessee: Favorable tax policies (Florida has no income-tax) as well as continued economic and population growth make these two states stand out as locations where one is more likely to see a higher return on investment.
Georgia: Georgia's government incentivizes IT and business services companies through cash-back policies and, as we discussed above, strong entrepreneurial ecosystems exist in major cities like Atlanta, promoting innovation and investment.
Kentucky + Mississippi: Sure, it’s not Atlanta, but both Kentucky and Mississippi’s blossoming cities give investors a chance to make early contributions to a growing market.
Virginia + North Carolina: For investors who fall more on the conservative side, Virginia is ideal. Why? This state benefits from government-backed investments, providing stability and a sense of balance if investments are also being made in more high-risk areas. Plus, industries like SaaS, Fintech, and Biotech are hot in both of these states, opening the door to local investment opportunities. North Carolina’s Research Triangle Park (RTP) in particular hosts many biotech companies including key players in pharmaceuticals, medical devices, and genomics.

VentureSouth: The Wingbeat of Southeastern Angel Investing

Every angel investment group and community has a heartbeat, core missions and goals that drive progress forward, but what about a wingbeat? At VentureSouth, we think of this wingbeat as the sound and the rhythm of dreams taking flight, of local investments truly helping startups get off the ground. In the Southeast, we are that wingbeat, and we would be thrilled to see you become a member of our investment club.

If you’re looking to become an angel investor, you’re already well on your way to taking the first step. Join us today and unlock access to curated early-stage investment opportunities across the Southeast.