TLDR:
- Alabama experiences a significant increase in VC deal value reaching $538.3 million in the fourth quarter of 2023.
- Despite a decline in deal counts, Alabama sees a 209.9% year-over-year increase in deal value, marking the highest total deal value for the state in a decade.
The National Venture Capital Association released data for the fourth quarter of 2023, showing Alabama’s strong performance in comparison to other Southeastern states. Alabama’s total deal value reached $538.3 million, driven by notable deals from companies like Landing, Fleetio, and HiveFive Health. While deal counts declined from 50 to 48, the state saw a significant 209.9% year-over-year increase in deal value, the highest in a decade.
In contrast, other Southeastern states like Kentucky, Mississippi, South Carolina, and West Virginia experienced more modest increases or declines in deal value. Nationally, the VC deal count remained high in Q4 2023, with an estimated 3,934 deals completed, indicating a slow year for deal activity overall.
The increase in deal value seen in Alabama is attributed to the maturation of the local startup market, according to experts like Matt Hottle, the co-founder and partner of Redhawk Advisory. This trend in Alabama stands in contrast to national trends, where deal value declined in 2023. Despite the decline nationally, Alabama’s performance signals a promising outlook for its startup ecosystem.
