In next week’s election, seven swing states will likely have the deciding vote in selecting the next US president.
But the group is united not only by narrowly divided politics. From a startup financing standpoint, the swing states of Pennsylvania, Michigan, North Carolina, Wisconsin, Georgia, Nevada and Arizona also fall in the middle of the road.
In other words, none of the swing states are home to the largest enterprise investment centers. These can be California, Massachusetts and New York, all blue states.
By the same token, swing states are also not “venture deserts” where large rounds of financing rarely occur. This category includes sparsely populated states and those without large metropolises or leading research universities.
On the contrary, all swing states are home to several well-known venture-backed firms. Below, we take a look at what each startup ecosystem looks like today.
Pennsylvania
Pennsylvania, the busiest of the swing states, is likely to be the most hotly contested this election yr, as evidenced by the enormous spending of each campaigns and the schedule of events in the country.
From a enterprise financing standpoint, the Keystone State also has the distinction of getting two metro hubs – Philadelphia and Pittsburgh – situated 500 miles apart and best known for launching various forms of startups.
Philly, as we wrote last yr in our Superbowl article, is at the forefront of biotechnology and health care. Well-known startups or one-time startups based in a given area include: Spark Therapy AND DBT labs. Meanwhile, Pittsburgh is well-known for robotics and autonomous vehicles and is home to, among others, AI Slang AND Duolingo.
Michigan
Michigan, in fact, has close ties to the auto industry, which is reflected in its most famous venture-backed firms.
Manufacturer of electrical vehicles Rivianwhich went public in 2021 in the biggest offering of the yr, is arguably the most recognizable brand, even if its shares are trading at a fraction of previous highs. Other well-funded Michigan startups include a developer of autonomous vehicle technology May Mobility and battery company Our next energy.
Michigan-based firms have raised about $580 million in seed-to-growth financing this yr, according to Crunchbase.
Eastern Michigan stays the heart of the state’s startup ecosystem, with the highest concentration of firms in Ann Arbor, Detroit and points in between.
North Carolina
From biotech to fintech to gaming, North Carolina boasts deep talent pools in countless sectors. However, when it comes to private fundraising, a single company, Epic gameshas a habit of dominating the headlines.
Over the years, Cary, North Carolina-based Epic has raised nearly $8 billion in private financing, including a recent $1.5 billion fund Disney– supported corporate round. Like many other tech firms in the state, it is headquartered in the Research Triangle region where each are situated Duke University and University of North Carolina at Chapel Hill.
Excluding Epic in North Carolina, firms have raised $1.34 billion in growth financing this yr, according to Crunchbase data. The most vital recipients of funding include the data integration provider CData softwaremedicine creator Pathalys Pharma companyand HR platform Oyster.
Georgia
With a population of over 6.3 million, the Atlanta region is currently the sixth largest metropolitan area in the country. This means there is loads of startup talent around.
Despite this, Georgia has not been a leader in enterprise financing in the past. That’s true this yr as well, with just $700 million going to Peach State businesses in each phase, according to Crunchbase.
Still, we see some good-sized rounds. Companies that have closed such financing this yr include several Atlanta firms: a manufacturer of robotic pool cleaners aiperpayroll platform OnPayand electric vehicle charging service provider EnviroSpark.
Arizona
Arizona is known for attracting many relocating Californians. However, they didn’t bring much of the enterprise capital with them.
So far in 2024, the Grand Canyon State has raised just over $550 million in phased seed funding. That means this yr might be the lowest in several years, thanks in part to fewer large cleantech and real estate deals.
Fundraising platform provider for nonprofit organizations Virtuous software picked up its largest round of the yr, with $100 million in September funding. Other large deals include Series D for biotech Nectero Medical and the A series for battery developers Power of Sion.
Wisconsin
Wisconsin is often called America’s Dairyland, not America’s Startupland. Nevertheless, the state has a fairly diverse startup scene, with well-funded firms in areas ranging from e-commerce to biotechnology.
The company based in Madison is among the most capitalized Retrieveshopping rewards app, which has raised greater than $550 million in equity capital and secured $50 million in debt financing this yr.
Another is based in Janesville Gloss technologiesfounding father of nuclear medicine and fusion technology, who has raised over $500 million in enterprise funding and grants.
Wisconsin-based startups raised just over $287 million in enterprise funding and grants in 2024, according to Crunchbase. The largest round was January’s $55 million Series C for the Madison-based company elephantwhich is developing an advanced imaging platform to predict response to immunotherapy.
Nevada
Nevada is the smallest startup ecosystem among the swing states. So far this yr, only about $121 million in seed funding in growth financing has gone to firms based in the state, according to Crunchbase.
But while small, Nevada’s startup scene is quite diverse, with firms in a number of sectors, from cleantech and electric vehicles to fraud detection and fintech to manufactured housing. Among Nevada startups, Redwood materialsThe Carson City-based battery recycling startup is the largest fundraiser to date, having raised $3.8 billion in debt and equity.
Funding does not appear to be a predictive factor
Looking at swing state forecasts this yr, it’s clear that no one is assuming statewide enterprise funding will play a big role. Candidates prefer to talk about grocery prices quite than Series A valuations. And from what I know, that is probably a good thing.