Section 08: Tech Infrastructure Metrics
Other Funding
Venture capital is often an essential tool for start-up companies to grow into tech leaders and bring products to market quickly
Looking at growth rates for venture capital, North Carolina’s growth has kept pace with the national average in recent years, but venture capital funding data through the third quarter of 2025 is below investment levels in previous years.
Venture Capital Funding Change
Source: EL calculations based on NVCA (2025) Note: 2025 data is as of Q3 2025
North Carolina Equity Funding
The data from the last full year, 2024, showed an increase from 2023 levels. While the total number of deals declined slightly (209 vs. 214 in 2023), the average deal size more than doubled to $18.4M from $7.7M, driven by a concentration of capital in larger transactions. However, the median deal size declined to $1.7M from $2.1M, indicating a funding landscape in which big deals grew bigger while smaller investments remained active. Sixty exits occurred, all through M&A or buyouts, with no IPOs or SPACs. High interest rates and cautious market conditions led to fewer liquidity events. The number of institutional investors declined slightly (273 vs. 317 in 2023), particularly from the West Coast, while international investors from 19 countries maintained a strong presence.
| Company Type | 2024 Funding (in millions) | 2023 Funding (in millions) |
|---|---|---|
|
Tech Companies |
$2,500 |
$926 |
|
Life Sciences |
$544 |
$555 |
|
Advanced Manufacturing |
$15 |
$45 |
|
Clean Tech |
$92 |
$90 |
|
Makers |
$11 |
$19 |
|
All NC Entrepreneurs |
$3,200 |
$1,635 |
Traditional tech economies such as California, Massachusetts, and New York continue to attract much of the nation’s venture capital
This year, the state dropped one spot in the ranking to #13, as the overall value of venture capital funding per GDP increased slightly compared with the previous five-year average.
Source: EL calculations based on NVCA (2025) and BEA (2025)
Venture Capital Invested Per $1 Million of GDP, 2019-2024
SBIR & STTR Funding Per $1 Million of GDP, 2019-2024
North Carolina’s SBIR/STTR funding per $1 million in GDP was above the national average and ranked #14
One option for new companies seeking funding for high-tech R&D is the federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. These initiatives support and encourage American innovation by investing in small businesses during their concept and prototype development phases, with the goal of reaching commercialization. SBIR/STTR awards can provide critical early-stage funding for high-reward concepts, and helping local start-ups apply for and secure these funds can be especially impactful.