Experts say that the Seattle startup scene is sizzling right now. There is record funding, a hiring surge, and 12 unicorns. Just five years ago, when GeekWire analyzed CB Insights’ list of unicorns, no Seattle-based startups made the cut. A large chunk of the recent venture capital funding is from so-called mega-rounds that have minted several new unicorns, or privately held tech startups valued at more than $1 billion. Onlookers that know says Seattle’s startup scene has never been stronger.
The latest numbers were published by PitchBook and NVCA this week. Seattle-area startups raised a record-setting $3.1 billion across 205 deals in the first half of 2021. That’s up from $1.8 billion across 162 deals during the same period last year.
Tech hubs like Seattle have become centers of opportunity for some. Technology has also pushed out some. Economists understand that more tech money flowing into the region could mean an expanded tax base, but it also could exacerbate the housing density dilemma. Redman said the city needs to consider radical approaches, such as moving the Port of Seattle and using its existing land for housing.
Other startup hubs including the Bay Area ($54.1 billion) and New York City ($22.4 billion) are also setting massive funding marks in a different ballpark than Seattle. Tech companies across the Pacific Northwest, however, have raised more than $5 billion this year, according to GeekWire’s funding tracker. That’s more than double from the year-ago period.
Seattle did lose a unicorn this year. But that was because security startup Auth0 was bought by Okta for a whopping $6.5 billion — one of the largest acquisitions in Seattle tech history, and a reflection of the ecosystem’s maturity.
The pandemic accelerated adoption of digital technology, which helped drive revenue for the region’s bevy of business-to-business enterprise technology companies. Seattle is also seeing a recent flurry of life sciences startup activity.
