The Southern Startup Report is a bi-weekly publication with curated news to support the Southern Startup Ecosystem.

The Southern Startup Report is a bi-weekly publication with curated news to support the Southern Startup Ecosystem.

The Southern Startup Report is a bi-weekly publication with curated news to support the Southern Startup Ecosystem.

Nationwide, startups are struggling right now. The South is no exception. In Q3, Carta, a cap-table management platform, reported the highest number of startup shutdowns since its service launched in 2012. According to Carta, there were 212 startup shutdowns last quarter, a 25% increase from the previous quarter, and a 50% uptick from the same period last year. Even well-funded startups have shuttered their doors in recent months. Convoy, a Seattle freight startup valued at almost $4B, shut down in October. Olive AI, a Ohio-based unicorn that raised $857M, closed its doors in October as well. Cali-based startup Veev shut down in November after raising $600M in funding. I have not seen many massive shutdowns like these in the South. We like to joke in New Orleans, “we’re so far behind, we’re ahead.” I’m hoping we never catch up in this regard.

Are you curious about SBIR/STTR federal funding programs? Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs encourage R&D on innovations with commercialization potential. Many of the companies I write about in this newsletter started out as just that - unproven concepts that needed work before launch. There are a number of SBIR/STTR grant programs opening up in coming months.

With Thanksgiving around the corner, I know we are all thinking about Native Americans. You thought I would say turkey didn’t you? Regardless of your gluttonous inclinations, I have good news from the South to share. Nashville-based Relevance Ventures, one of the only Native American owned and operated VC firms, has partnered with Sante Fe-based Skoden Ventures to launch the first Native American Capital and Investment Alliance (NACIA), designed to bridge the gap between Native American founders and providers of equity and debt capital. With over $115M under management, Relevance Ventures is dedicated to “delivering larger capital infusions to opportunities that make people well by bringing balance to imbalances in life, the body, and society, delivering above-market returns to its investors, giving Native people and underprivileged groups a louder voice, and doing so with urgency and conviction to change the world in which we live for the better and for all.” Now that’s a great mission statement! Happy Thanksgiving friends!