Arkansas breaks through $100M in venture capital raised

Arkansas companies raised record-setting $107.6 million in venture capital during 2021, up from $31.4 million raised in 2020.

• The estimated numbers, shared with Axios, are from PitchBook, a private equity database company.

Why it matters: Private investment gives startups and young companies resources to grow more rapidly. An increase in venture capital signals investor confidence in the entrepreneurial community taking hold in the state.

Context: A disclaimer, of sorts. The numbers vary slightly from numbers provided by PitchBook and reported by Axios at the end of the third quarter.

• “Like we often see between quarters, a few deals had changes to their deal date or deal value, and there were also new deals added to the [metropolitan statistical area],” a spokesperson told Axios.

While the value of investments quarter by quarter may not align, the overall values have moved in the same direction.

By the numbers: An estimated 83% of the statewide total was invested in Northwest Arkansas companies in 2021.

• Companies in the Little Rock metro, which includes North Little Rock and Conway, received the rest.
• There were 21 deals reported in NWA and eight in the Little Rock metro.

Zoom out: Venture capital deals in Austin, Texas — a competitor for talent, startups and venture capital — were valued at $4.8 billion last year.