Summary:
Vermont, Hawaii, and Arkansas are emerging as startup hotspots despite being overlooked.
Arkansas has seen a nearly 50% increase in funding, raising $175 million this year.
Hawaii's Privateer captured two-thirds of statewide funding with a $57 million financing.
Oregon experienced a 77% increase in funding, totaling over $600 million.
Monitoring states like Kentucky and Oregon for growth opportunities while tracking declines in states like Missouri and Alabama.
Vermont, Hawaii, and Arkansas might not be the first states that come to mind when thinking of the next Silicon Valley, but they are emerging as startup hotspots due to significant venture funding increases.
Rising Stars in Startup Funding
According to a Crunchbase News analysis, while overall U.S. funding is on the rise, many states are still facing declines in startup investments for 2024. However, a few smaller startup scenes are defying the trend and seeing sizable investment gains. The standout states include Arkansas, Connecticut, Hawaii, Kentucky, Montana, Oregon, and Vermont.
In Hawaii, for example, the Maui-based startup, Privateer, captured over two-thirds of statewide funding with a $57 million financing. In Vermont, Beta Technologies garnered $318 million, which accounted for more than 90% of the state's startup investment this year.
Arkansas's Impressive Growth
Arkansas has seen a nearly 50% increase in startup funding, raising $175 million this year. This growth is largely due to several notable deals, particularly in Bentonville, home to Walmart. The largest investment was in Laravel, a web app development framework, which received $57 million.
Healthcare startups in Arkansas also enjoyed success, with Panacea Financial raising $24.5 million and NowDiagnostics securing $22.5 million.
Oregon's Revival
Oregon is experiencing a 77% increase in funding, totaling over $600 million so far this year. SerĂĄn Bioscience led the charge with a $200 million round, highlighting the state's tech talent.
Future of Startup Ecosystems
While smaller venture ecosystems can be volatile, Arkansas appears to be establishing itself as a promising startup hub. Weâll continue to monitor other states like Kentucky and Oregon for growth opportunities while keeping an eye on areas that have seen declines, such as Missouri, Nevada, and Alabama.
Illustration by Dom Guzman
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