Telstra Ventures Delivers New Insights Revealing VC Investment Flood into Blockchain, US Emerging Tech Hubs

• Blockchain VC Investments Skyrocket, Miami plants flag as Crypto Hub
• Miami, Houston, Washington, DC and Philadelphia Emerge as Tech Hubs with Largest VC Investment Growth Percentage in the Past Year

SAN FRANCISCO–(BUSINESS WIRE)–Telstra Ventures, a strategic growth investor in lighthouse technology companies, today publishes its second “Tech’s Great Migration: Insights to Emerging Tech Hubs Across the U.S.” report revealing how the impacts of 2021 events have shaped the startups and the VC investment landscape. Telstra Ventures gathered and evaluated data¹ from 40,000 startups that had received VC funding during 2020-2021 in 28 regions, including the San Francisco Bay Area, New York City, Los Angeles, and 25 emerging tech hubs.

“During the past 12 months, the pandemic continued to push startups and VCs to evolve our ways of thinking, working, and investing as the debate raged on about whether or not you needed to be in San Francisco or New York City to be a successful startup,” said Mark Sherman, General Partner at Telstra Ventures. “Our analysis reveals VC deal volume and deal flow drove significant growth in both major tech hubs, surpassed by even faster growth in regional tech hubs across the US.”

Telstra Ventures Tech’s Great Migration report answers the following questions:

1. Which cities are attracting startups; is there movement away from the Bay Area and New York startup tech hubs?
2. Which sectors saw the most significant increase in VC investments?
3. Which cities or regions saw the most growth in VC investments?
4. Which were the top sectors that attracted VC investments in these cities or regions?

Key findings include:

Blockchain startups lead 2021 VC Investment Growth

VCs increase deal flow in the following sectors:

1. Blockchain (+182% investments y-o-y)
2. Mobile & Consumer (+87%)
3. FinTech (+87%)
4. Media & Advertising (+83%)
5. Health Tech (70%)

“Despite the volatility of cryptocurrencies, VCs increased Blockchain investments by 182% in what we believe are still the early days in this investment sector,” said Yash Patel, general partner at Telstra Ventures. “Across the US, VCs are backing crypto innovators and digital asset marketplaces that sit at the bleeding edge of next-generation entertainment and finance for the vast majority of GenZ and Millennial eSports and gaming enthusiasts. This is quickly spreading mainstream as we’ve seen pop culture, sports and celebrity ambassadors and partnerships continue to emerge in the space. There’s no winner-take-all dynamic here, neither in crypto innovators, nor metaverses, nor tech hubs. It’s an exciting time for Web3.”

Regional Growth in blockchain deals

1. Miami (2061%)
2. Washington, DC (476%)
3. Atlanta (368%)
4. Austin (260%)
5. Chicago (246%)

“Mayor Suarez’ bid to turn Miami into the blockchain & crypto capital of America is coming true,” continued Patel. “Miami joined San Francisco, NYC, and Los Angeles as one of the top regions receiving Blockchain investments. SF, NYC, and LA still lead the country in Blockchain investments, but Miami emerged from nowhere to take 4th place. Miami had the greatest percentage growth in terms of VC-backed investment transactions (2061%), but still has a long way to go to catch up to the major Tech Hubs.”

VC deal volumes accelerate across 24 of America’s 25 emerging tech hubs

1. Miami (260% y-o-y growth)
2. Houston (+165%)
3. Washington, DC (+143%)
4. Philadelphia (+114)
5. Raleigh-Durham (+97%)

San Francisco reported a robust 69% y-o-y increase in the number of VC-backed deals. Together with New York (96% y-o-y growth in 2021) deals, the leading tech hubs retained over half of the country’s funding rounds; followed by Los Angeles, Boston, Seattle, and Austin. Pittsburgh was the only city to see a slowing in VC deals compared to the previous year.

About Telstra Ventures

Telstra Ventures identifies what’s next, right now. Telstra Ventures serves extraordinary leaders and helps them achieve their dreams. In our first nine years, 85+ investments have generated 30 liquidity events including Auth0, BigCommerce, Box, Cloopen, CrowdStrike, DocuSign, Rancher, Skillz, Snap, and Whispir. To date, our Revenue Bearing Relationships^TM have driven > US$360 million in revenue, extending the reach of our portfolio companies across Australia and Asia. In 2018, Telstra Ventures became an independent firm backed by LPs including HarbourVest, the ~US$70B AUM private equity investment platform, and Telstra, the ~US$30B market capitalization communications services company, headquartered in Australia. To see our full portfolio and learn more, visit telstraventures.com.

¹Source: https://www.crunchbase.com/

Contacts

Ken Shuman

Telstra Ventures

[email protected]