Florida Startup Funding Slows Despite High Hopes
Early momentum fades as Florida sees a drop in startup funding and fewer major exits.
Florida’s Funding Dip Raises Concerns for Startup Growth
Florida was once seen as a rising destination for startups, especially during the pandemic when many relocated to the Sunshine State. But current funding trends tell a different story.
So far this year, startups based in Florida have raised around $820 million in seed to growth-stage funding. At this pace, 2025 could mark the state’s lowest funding year in a long time.
Where the Funding Went
Most of the larger funding deals have been concentrated in the Miami area. Notable investments include:
- Cast AI (Miami): Raised $108 million in a Series C round led by G2 Venture Partners and SoftBank. The company provides performance automation tools for enterprise applications.
- Flow: The real estate startup founded by Adam Neumann secured $100 million in funding, backed by Andreessen Horowitz.
- ONE Amazon: Received $100 million to support its crypto-focused environmental projects in the Amazon rainforest.
- ThreatLocker (Orlando): Closed a $60 million equity round, according to SEC filings.
Additionally, Newsmax Media, based in Boca Raton, went public in March. Its stock initially surged but later dropped, with shares recently trading around $25.
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Few Big Exits and Unicorn Deals
High-value funding rounds have become rare in Florida. Most of the state’s unicorns, such as Reef, Kaseya, and Papa, haven’t secured new funding in recent years.
Florida’s crypto and blockchain scene, once expected to thrive, has also cooled. So far in 2025, only about $21 million in funding has gone to startups in this space. Despite efforts by local leaders to position Miami as a crypto hub, the momentum has faded.
Still, there could be a notable crypto-related exit ahead. American Bitcoin, part of Miami-based Hut 8 and backed by Eric Trump, announced plans to go public via a merger with Gryphon Digital Mining.
Florida Still Holds Long-Term Potential
While this year’s funding levels are underwhelming, Florida still offers strong appeal to startups. The state’s warm climate, lack of income tax, and vibrant cities remain major draws.
The startup community is watching to see if the current funding slowdown is temporary or signals a longer-term shift. With the right conditions, Florida could still regain its momentum in the startup world.