This blog is a contribution from Valor intern Amanda Glidden. We love featuring the insights and research of our talented interns, and we believe you’ll really enjoy Amanda’s deep dive into the regions where the next hot biotech/pharma startups are likely to emerge.
Valor has a strong track record of investing in this arena, proudly backing next-generation healthcare leaders such as Allelica, Modicus Prime, CareWork, and TherapyIQ. Our existing healthcare investment theses focus on AI-augmented biotech software platforms across various sectors, including animal husbandry, agriculture, gene therapies, and pharma manufacturing.–Lisa Calhoun
The South is home to one of the fastest growing biotech startup scenes in the country.
- Growth Rate: The biotech business growth rate in the South exceeds the national average.
- Key States: Georgia and North Carolina are among the fastest-growing states in biotech.
- Leading Industries: The Southeast excels in mass research and development, drug manufacturing and production, and infectious disease research.
- Investment Opportunities: The Southeast presents a dynamic market with numerous opportunities for startups and investors, particularly in pharmaceuticals and agriculture biotechnology.
The South’s Emerging Biotech Startup Leadership
Biotech is an ever-growing market with opportunities for both private and public companies. Leveraging existing biological and mechanical resources, this sector offers fertile ground for innovation and growth with an annual growth of 33% between 2022 and 2023. VC firms invested 18.4 billion over 481 deals in 2023 in this sector–it’s a key part of the innovation economy. This graphic shows the public companies in the sector that already call the South home.
How the Southeast Sets the Pace for Biotech Startup Innovation
The biotech growth rate in the South is higher than anywhere else in the US. By analyzing several reports and state-specific growth the data reveals that, over the last 10 years, the South has outpaced the national average by over 3 percent. Among the four states recognized as the fastest-growing in biotech, two are Southern states: Georgia and North Carolina.
Key Biotech Companies in the Southeast
- Georgia: Home to companies like CryoLife, Inc. (cardiac and vascular surgery products) and Medtronic (cardiovascular and vascular surgery products) CDC(Drug Manufacturing and research).
- North Carolina: Hosts major players such as Pfizer (significant manufacturing presence) and Biogen (R&D presence in Research Triangle Park).
- Tennessee: Notable institutions include Vanderbilt University Medical Center (medical research and healthcare services).
Where the South Leads in Biotechnology Globally
At Valor Ventures, I have been researching the biotech industries where the South currently excels. The Venn Diagram below illustrates the major industries by U.S. region and highlights the commonalities.
When you break it down further, you can see that in certain sectors, the South has the greatest region density of public companies in the space.
The Southeast is a leader in:
- Mass Research and Development
- Drug Manufacturing and Production
- Infectious Disease Research
Supporting Biotech Startups in the South
The Southeast is a rapidly growing powerhouse region in the biotech industry. With its robust infrastructure, supportive ecosystem, and significant growth rate, it offers unparalleled opportunities for startups and investors. Valor Ventures is keen on supporting scalable software solutions that leverage the South’s existing strengths. If you are a startup focused on software that applies to cell therapies, agricultural engineering, gene modification, or other platforms to help biologists, healthcare leader and geneticists create a healthier world, let us know about it. — Amanda Glidden, Summer 2024 Valor Intern