2025 FUNDING INSIGHTS AND ENTREPRENEURIAL ACTIVITY

North Carolina’s venture capital ecosystem demonstrated notable resilience and strategic depth in 2025, even as broader national trends raised important questions about the health of early-stage startup formation. Total venture funding reached $3.4 billion—a 7% increase over 2024’s $3.2 billion and a remarkable 108% above 2023 levels—marking the fourth time in five years the state has surpassed the $3 billion threshold.

But the headline number only tells part of the story. Behind the funding gains lies a fundamental shift in how and where capital is being deployed: fewer companies, larger rounds, and a dramatic rotation away from tech dominance toward Life Sciences and Advanced Manufacturing. This year’s report captures both the momentum and the tension defining North Carolina’s innovation economy.

5 Key Takeaways from 2025

1. Steady Growth in Total Funding

Venture funding in North Carolina reached $3.4B in 2025, up 7% year-over-year and 108% above 2023 levels. The state maintained momentum above the $3B threshold for the fourth time in five years, even as national trends pointed toward capital concentrating into fewer startups. While encouraging, this growth was accompanied by a 14% drop in the number of funded companies (166 vs. 192 in 2024)—a tension that mirrors a concerning national dynamic.

2. Dramatic Shift to Life Sciences and Advanced Manufacturing

Life Sciences and Advanced Manufacturing together captured over 62% of total venture dollars ($2.1B combined), surpassing tech’s previous dominance. Life Sciences surged 145% to $1.3B, driven by landmark deals including Kriya Therapeutics ($321M), Tune Therapeutics ($175M), and Atsena Therapeutics ($150M). Advanced Manufacturing exploded 5,061% to $792M, led primarily by Vulcan Elements’ two major rounds totaling $685M. This represents a fundamental realignment of North Carolina’s innovation economy.

3. Fewer but Larger Deals

Total deal count declined to 187 from 209 in 2024, while average deal size rose slightly to $18.9M from $15.2M. More significantly, median deal size increased to $3M from $1.7M—reflecting a more selective but not exclusively mega-round-driven landscape. Capital is increasingly favoring companies with demonstrable progress toward clinical, technical, or commercial milestones. This bifurcation creates real challenges for companies that fall between early-stage and growth-stage categories.

4. Triangle Region Further Consolidates Leadership

The Research Triangle accounted for 73.2% of all deals in 2025, up from 67.9% in 2024. Durham led all cities with 54 transactions, followed by Raleigh with 29 tech-focused deals and Cary/Morrisville with 17. The Triangle’s concentration of research universities, Life Sciences infrastructure, and venture networks continues to attract both local and national investor attention, reinforced by initiatives like UNC’s 20% growth in commercialization activities and Vulcan Elements’ announcement of a 1,000-job manufacturing facility.

5. Emerging Hubs Beyond the Triangle

While the Triangle dominates deal volume, geographic diversification is gaining traction. Wilmington contributed a standout $300M round from Vantaca in tech, and Charlotte continued building momentum with deals including Terrestrial Energy ($15.6M in Cleantech) and Petscreening ($80M in tech). Charlotte’s share of total deals—approximately 6%—reflects its growing strengths in fintech, proptech, and cleantech, underscoring a slow but steady broadening of North Carolina’s entrepreneurial geography.

CED’s Role in the Ecosystem

In 2025, CED supported 797 companies across North Carolina, with our team and network delivering over 8,000 hours of consultative support. Through programs including Venture Connect, Connect to Capital, and the GRO Incubator, CED served as the connective tissue between entrepreneurs, investors, and the resources needed to scale. Connect to Capital alone made over 1,000 curated direct introductions between founders and capital sources.

Looking ahead, CED’s Venture Connect conference returns March 24–25 at DPAC in Durham—North Carolina’s premier capital conference, where 200+ VCs and capital sources will engage with companies scaling across the state.

To see the complete data—including company exits, sector breakdowns, geographic deal maps, and investor activity analysis—download the full 2025 North Carolina Venture Report at cednc.org.

To see the complete data—including company exits, sector breakdowns, geographic deal maps, and investor activity analysis—view the full 2025 North Carolina Venture Report above. Data for this report was gathered by CED’s Accelerate team, Yash Mehta, Hunter Young, and our Startup TNT Associate Yug Sharma.