The 7 Best VC Firms In Charlotte, NC [2021]

The 7 Best VC Firms In Charlotte, NC [2021]

Are you looking for a VC firm for your Charlotte, NC based startup?

According to the 2021 ecosystem report by StartupBlink, Charlotte city is ranked at number 58 globally, showing a positive momentum compared to past few years.

In the US alone, the city also ranks at number 22, while in North America, it is ranked at the 25th position.

In the third quarter of 2021, the Charlotte region added over 15,000 jobs, which is almost double any previous quarter in 2021.

These statistics are proof that Charlotte is an ideal place to locate for Fintech, Energy, Energy & Environment, and Foodtech startups.

Obtaining venture capital financing can provide a start-up with a valuable source of finance, management guidance, and consultation.

However, finding the right investment firm for your startup can be a daunting task.

There are a number of successful venture capital firms in Charlotte, NC, and we've curated a list of the best local firms in the area. Additionally, we provide you with:

  • Investment size
  • Funding stages
  • Typical industries the firm works with
  • Well known companies the VC firm has invested in

Here's the list:

1. CFV Ventures

  • Location: Charlotte, NC
  • Industries: Fintech
  • Investment Range: Not disclosed
  • Stage: Seed Stage
  • Companies invested in: Amicus, Catapult, CredPal

CFV Ventures also known as Carolinas Fintech Ventures is a Charlotte-based VC firm.

They mainly invest in early-stage Financial Technology companies based in the US.

Their vast portfolio consists of names like CapWay, Finsophy, Edquity that are performing well in the fintech industry.

Learn more about CFV Ventures ➜

2. Frontier Growth

  • Location: Charlotte, NC
  • Industries: Software
  • Investment Range: Not disclosed
  • Stage: Series B
  • Companies invested in: NEOGOV, Jane Software, Phone2Action

Frontier Growth is an investment firm primarily focused on the software market.

They help successful software companies to reach new heights with their resources, expertise, and well-planned out strategies.

The firm’s goal is to back exceptional business ideas that have the full potential to succeed in the market.

Learn more about Frontier Growth ➜

3. Capitala Group

  • Location: Charlotte, NC
  • Industries: Manufacturing, Software, Technology, Healthcare, Consumer Services
  • Investment Range: Not disclosed
  • Stage: Series A
  • Companies invested in: Advantage Medical Electronics, BigMouth, Inc., Klein Hersh

Capitala Group is a capital provider for lower-middle market companies operating in different industries.

This Charlotte-based company was founded in 1998, and since then has invested in over 170 companies across the USA.

Capitala Group is currently managing private funds and SBIC funds that jointly constitute over $2.0 billion of managed assets.

Learn more about Capitala Group ➜

4. Pamlico Capital

  • Location: Charlotte, NC
  • Industries: Communications, Healthcare, Services, Software
  • Investment Range: Not disclosed
  • Stage: Series A
  • Companies invested in: Airwavz Becker's Healthcare, Cartegraph

Pamlico Capital has been serving the lower middle market for over 30 years.

They provide growth capital to emerging companies and help them become market leaders.

Learn more about Pamlico Capital ➜

5. CreativeCo Capital

  • Location: Charlotte, NC
  • Industries: B2B SaaS, Technology
  • Investment Range: $100K - $1M
  • Stage: Pre-Seed, Seed
  • Companies invested in: Apty, Ziflow, Rabbu

CreativeCo Capital is a growth equity studio based in Charlotte, NC.

They invest in early-stage software or tech companies and provides them with capital and capabilities to succeed in their businesses.

The firm's investment ranges from $100K to $1M at the initial stage.

Learn more about CreativeCo Capital ➜

6. Defiance Ventures

  • Location: Charlotte, NC
  • Industries: Technology, B2B
  • Investment Range: Not disclosed
  • Stage: Series A
  • Companies invested in: Tavve, KiteEdge, Swyft

Defiance Ventures provides capital funding along with strategic operational support to tech companies at any of their business growth.

They invest in promising ideas and efficient teams to help the founders realize their goals and reach their full potential.

The firm showcases a really strong portfolio comprising of names such as IntellyDoc, Syndicatr, Rent Ready.

Learn more about Defiance Ventures ➜

7. Ridgemont Equity Partners

  • Location: Charlotte, NC
  • Industries: Healthcare, Industrial Growth, Business & Tech-enabled Services, Tech & Telecom, Environmental, Power & Infrastructure
  • Investment Range: Not disclosed
  • Stage: Series A
  • Companies invested in: Allredi, Anne Arundel Dermatology, HealthMar Group

Ridgemont Equity Partners has been investing in multiple businesses across sectors for nearly 30 years.

The firm has had hands-on experience in building and managing growing enterprises since 1993.

Ridgemont has laid out over $5.5 billion of buyout and capital to help more than 162 private companies.

Learn more about Ridgemont Equity Partners ➜

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What Are The Stages Of VC Business Funding?

The five stages of venture capital financing are:

  • Seed Stage: When the startup approaches an angel investor to seek funding, although they may not have a commercially available product yet.
  • Startup Stage: The stage when a business has a commercially viable product but needs financing for further product development.
  • Early Stage: The stage where the commercially viable product or service has been developed and is available in the market. The funding at this stage goes towards manufacturing, sales, and additional product marketing.
  • Expansion Stage: The stage where the startup is growing, the products are selling, and the company is taking a significant amount of revenue.
  • Pre-IPO Stage: The last stage of the venture capital financing process, where the primary goal is for the startup to go public so that the investors exit the venture and earn a profit.

How Does A VC Firm Work?

Venture Capital is a form of equity financing where investors fund a company in exchange for equity.
The firm or person making the investments is the venture capitalist. Therefore, the venture capitalist buys a stake in an entrepreneur's idea, nurtures the idea for a short period, before existing. Note that a venture capital fund is not long-term investment. ideally, the venture capitalist invests in the company balance sheet until it reaches a certain size and credibility.

Why Is A VC Firm Important?

New businesses are often risky and cost a huge amount of capital. As a result, founders often seek to spread the risk of failure through investments from VC firms. Therefore, venture capital allows startups to get off the ground, and founders to achieve their dreams.

Is It Risky To Get A Venture Capital Investment?

New companies often fail, and that means early investors can lose the money they put into it. Therefore, in VC funding, the investors either lose all the money, lose some money,return the original investment, or earn a good profit from the investment.

Pat Walls,  Founder of Starter Story

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