Startup financing activity in Miami increased during the pandemic, but has been largely concentrated in the early stages, indicating that the city remains a young hub whose main growth comes from the addition of startups to its ecosystem. .
Why It Matters: Despite a lot of noise from some Silicon Valley technicians and investors leaving the area for cities like Miami, new data suggests the exodus was more temporary, with some now quietly returning to the Bay Area .
In numbers: In the first two weeks of July, notable local deals include Lula ($ 18 million), Marco ($ 82 million), and Unybrands ($ 300 million). And according to data from Pitchbook:
2021 Q2: $ 831 million invested, up 142% compared to the year-on-year period immediately after the pandemic began.
2021 Q1: $ 224 million invested, 109% more year-on-year.
2020 Q4: $ 216 million invested, 68% less than the previous year.
2020 Q3: $ 218 million invested, 23% less year-on-year.
(Scroll to the bottom for data on Miami deals by stage.)
What they’re saying: “Pre-pandemic, only a few companies were being built here that fit in,” says ANIMO Ventures general partner Nico Berardi, who is based in Miami but doesn’t exclusively invest there.
Of the 22 investments ANIMO has made so far since its first fund, only one is based in Miami, although Berardi cites two other local companies that he was unable to endorse.
Between the lines: “The local ecosystem before COVID-19 was not really committed to excellence” and had been over-indexed in startup meetings relative to the depth of its startup bank, Berardi explains.
Current situation: Several entrepreneurs are setting up their startups in Miami, including previously successful founders, says Atomic (and early transplant) managing partner Jack Abraham.
The arrival of investors from established venture capital firms such as Founders Fund and Andreessen Horowitz, and SoftBank’s commitment to invest $ 100 million in local startups, has sent strong signals about Miami’s viability as a hub. “Symbols matter,” adds Berardi of ANIMO.
There is also a surge in venture capitalists from Silicon Valley and other hubs taking trips to Miami to meet up with startups and local networks. Investors from the #Angels, Freestyle, and GV group (among many others) have been in town recently, and are even signing some deals.
Notably, over the past two years, late-stage and large funding has also started to increase in Miami and the rest of South Florida, although some have gone to companies that have recently moved there, such as Pipe ($ 250 million) and Introhive ($ 100 million).
There was also no funding round greater than $ 500 million in the first half of 2021, unlike in the previous three years, as Refresh Miami’s Nancy Dahlberg points out.
The bottom line: Miami is certainly making leaps and bounds in strengthening its local startup market, but Silicon Valley hasn’t (at least yet).
