Florida, and Miami in particular, generated a lot of buzz a few years ago as a popular and low-tax hub for startup founders and investors. At its peak in 2022, nearly $9 billion flowed into startups in the Sunshine State.
However, the buzz died down soon after. Last yr, Florida firms raised lower than $2.6 billion in enterprise capital funding, and investment fell much steeper than the national average, Crunch Base data shows.
Recently, it seems that funding has stabilized somewhat. To date, Florida startups have earned just over $950 million, in accordance with Crunchbase data. This includes large rounds to firms whose areas of interest include, but are not limited to: AI chatbots Down endpoint security Down distant patient monitoring.
To get an idea of how funding has modified, we have compiled below the total investment in Florida startups over the last seven calendar years.
Although cartridges numbering many lots of of tens of millions were relatively common during the boom, they have since mostly disappeared.
So far this yr, we have only seen two rounds above $100 million.
Florida’s largest-ever startup funding round in 2024 was $150 million D series for headquarters in Orlando Korea.ai, a platform for AI-enabled chatbots. April was next at $115 million D series Down Threat blockingOrlando-based cybersecurity provider.
Lavishly funded laggards
Meanwhile, among the Florida firms that have raised the largest sums over the past few years, many big names have fallen in need of expected results.
The Plantation, Florida-based company probably stands out among the list of underperformers Magic jump, a manufacturer of augmented reality headsets. Between 2014 and 2021, the company raised nearly $3.5 billion in equity financing. However, its consumer offerings never gained traction and it has since shifted its focus to enterprises.
Based in Miami Reef this is one other straggler. The company, whose business model combines cloud kitchens and parking lots, raised $1.5 billion in two rounds led or co-led by SoftBank at the turn of 2018 and 2020. However, investor interest in the cloud kitchen space, which peaked during the pandemic, has waned.
Enthusiasm throughout Yugi LaboratoriesNFT pioneer known for his Bored Ape Yacht Club the collection also weakened. An organization based in Miami, employing distant staff, raised $450 million in 2022 as a part of the so-called seed round, which was its last reported financing. His iconic NFTs have prices fell sharplyand the company laid off employees last week.
Looking to the future
There’s no particular reason why the ups and downs of Florida’s startup scene couldn’t result in enduring success stories. As the third most populous US state, after California and Texas, it actually has enough people to launch and hire startups.
Outside of Miami, the Tampa, Jacksonville and Orlando metro areas are also large, densely populated areas with infrastructure to support startup hubs, including research universities, expert labor and access to seed capital.
Considering that startup activity has been higher this yr in comparison with previous quarters, there could be optimism that higher times lie ahead.