How Miami Is Empowering Its Diverse Startup Ecosystem
United States
Miami
MEMBERS:
Knight Foundation
"Miami’s pursuit of becoming what I call ‘the capital of capital’ is about not just financial capital, but also our rich ecosystem of human, social and cultural capital. It is clear that the confluence of these forms of capital will play a critical role in our Miami being definitive of what a competitive 21st century city can look like, where everyone is at the table of opportunity."
Highlights
Miami’s sunny weather and low taxes made it an attractive option when many people switched to remote work, and the city is quickly evolving into a hot startup destination. In 2021, venture funding in Miami shot up to a record $5.6 billion, up from $940 million in 2013. In January 2021, Japanese conglomerate SoftBank announced plans to invest $100 million into Miami-based startups. It has since blown way past that number, pumping more than $250 million into the city’s startups.
To keep up with growing demand for tech talent and local interest in careers in tech, Miami Dade College (MDC) will use $15 million in grant funding from the John S. and James L. Knight Foundation and government partners to hire faculty members and launch programs in AI, data analytics, and cloud computing. The Knight Foundation also committed $17 million to Florida International University, the University of Miami, and CodePath to accelerate tech talent development. IBM's Global University Programs group is spending $10 million to prepare students for tech careers and is opening an AI Center at MDC.
Ecosystem by the Numbers
EARLY-STAGE FUNDING
(2019H2-2021)
$1.9 bn
GLOBAL AVG. 2023
$687 m
ECOSYSTEM VALUE
(2019H2-2021)
$36 bn
GLOBAL AVG. 2023
$28.6 bn
Amount ($)
Count (#)
Exits
Sub-Sector Strengths
Life Sciences
Rapha Capital Management announced a $100 million venture fund focused on early-stage biotech startups in April. Its first investment in December was $3 million in convertible note financing for DELIVER Therapeutics. Heru, a spinout from the University of Miami’s Bascom Palmer Eye Institute, is building an AI-powered platform for eye diagnostic and vision correction. The company closed a $30 million Series A in May 2021.
Blockchain
Miami investments in Blockchain skyrocketed 2,061% in 2021. In June, crypto solutions provider Blockchain.com announced it was moving its U.S. headquarters here, and cryptocurrency trading platform eToro and cryptocurrency exchange FTX will both open offices in Miami by the end of 2022. The Bitcoin 2021 conference featured speakers including Jack Dorsey and cryptographer Nick Szabo, and Bitcoin 2022 expanded to four days. Green NFT platform OneOf raised a $63 million seed round in May 2021, and Recur raised a $50 million Series A in September 2021.
Reasons to Move Your Startup to Miami
Access to Venture Capital
With its risk-friendly, pro-business atmosphere, Miami has become a fast-growing venture capital center. Dozens of venture capital funds have offices in the city, and Miami has added more than 20 venture capital funds in the past three years, including Softbank’s Latin American operations, Founders Fund, Atomic, and Andreessen Horowitz.
Higher Education
Florida boasts five of the top 100 public universities in the country, including the University of Florida, which was ranked in the top five in 2021. U.S. News and World Report has ranked Florida’s higher education system the best in the nation for five consecutive years. Florida’s 2021–2022 budget invests an additional $64.5 million in state colleges and an additional $130 million in state universities.
Low Taxes
Florida levies no state income tax, making the overall tax burden in the state just 6.97%, the sixth-lowest in the U.S.
Selected Startup Organizations
Startup Genome Members
"Miami's startup ecosystem has grown by leaps and bounds, jumping up nine spots in the GSER ranking and producing two $1 billion+ exits. The Knight Foundation has been a tangible supporter of Miami and we're honored to join them in highlighting this growth."
Key Ecosystem Players
Startup Genome
Partners
500 Startups
Babson WIN
CIC Miami
Code Fever
Endeavor Miami
Florida International University
Idea Center at Miami Dade College
LAB Miami
Miami Angels
Refresh Miami
The Venture City
University of Miami
Venture Cafe Miami
Venture for America
WeWork
WhereBy.Us
eMerge Americas
News from the Ecosystem
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