Silicon Valley and New York, take note: the South is rising in the tech world. LinkedIn’s 2024 list of Top 50 Startups in America just dropped, and while it’s dominated by coastal giants, there’s a surprising Southern twist that signals a seismic shift in the landscape of American innovation.
Among the unicorns and billion-dollar valuations sits CareYaya at #21, a health tech startup from North Carolina’s Research Triangle Park. As CareYaya’s CEO, I’m proud of our achievement, but this isn’t just about one company’s success. It’s a wake-up call for the entire Southern tech ecosystem.
Out of 50 startups on the list, only two aren’t from California or New York. CareYaya stands alone in representing the South. This is our moment to prove that innovation doesn’t need a ZIP code starting with 9 or 1.
For too long, we’ve bought into the narrative that you need to be in Silicon Valley or New York to make it big in tech. That’s as outdated as dial-up internet. CareYaya’s success proves you can build a world-class startup anywhere, even in states better known for BBQ than bytes.
We’re not just any startup. We’re tackling elder care, one of the most underserved markets out there. While others chase the next social media fad, we’re building America’s largest caregiving platform, connecting college students with elders who need care. It’s a win-win that’s both scalable and socially impactful. We’re also rapidly bringing cutting-edge AI innovations to improve elder care and neurotech innovations to help millions suffering from dementia.
But here’s the rub: despite being based in the South, most of our funding came from outside the region. This is where the South needs to step up its game. We’re talking billions in potential returns walking out the door because regional investors are too clubby, risk-averse or short-sighted. When you see a map like this for the distribution of American technology talent, it’s time to realize the South can seize the baton as a major tech innovation hub in America.
Reading reports about emerging tech ecosystems in the South, such as this detailed analysis from a widely-read national newsletter, I am stunned at the lack of diversity in entrepreneurship funding. Look at every picture in that article. It makes you wonder: are middle-aged white men the only people that can build major tech startups in the South? Or, is the Southern investor ecosystem stuck in the 1950s and missing the changing face of American innovation?
The data is clear: underrepresented founders, women, immigrants, and people of color are building unicorns at an unprecedented rate. Over 70% of unicorns are led by founders with non-traditional backgrounds according to recent research from Defiance Capital.
Why? To paraphrase the highlights from the research:
The study identified three key traits in the “DNA” of unicorn founders:
- No “plan B”
- A “chip on the shoulder”
- Unlimited self-belief
These traits stem from personal experiences of feeling limited or unfairly treated, driving founders to prove themselves and change the status quo. The study observed these had been found in communities left behind, e.g. immigrants, people of color, women and neurodivergent founders. Many founders also tended to be “ambitious rebels”, motivated by a cause they care deeply about, and operated with no fear of failure.
To investors across the South: wake up and smell the opportunity. You’re sitting on a goldmine of talent and ideas, but you’re treating it like a country club instead of a launchpad for the next big thing. It’s time to diversify your portfolio. Look for founders who don’t look like you, who didn’t go to your alma mater, who might not fit your preconceived notions of what a successful entrepreneur looks like.
To all the entrepreneurs in our region: your time is now. Stop waiting for permission. Stop thinking you need to move to the coasts to make it big. Network aggressively, reach out to investors everywhere, and don’t be shy about hitting up my LinkedIn DMs for introductions.
The South is changing, and you have the power to accelerate that change. We have the talent, the universities, and increasingly, the recognition. Regions like Atlanta, Nashville, Research Triangle Park and Miami are becoming tech powerhouses in their own right. The South has a quarter of the top 20 metro areas for tech innovation in America. According to research from The Brookings Institute, we have an unprecedented opportunity for distributing the benefits of tech innovation away from the regional polarization of California and New York.
But we can’t rest on our laurels. We need to foster a more inclusive, ambitious investor ecosystem that matches the diversity and drive of our entrepreneurs. We need policies that attract and retain top talent, and educational initiatives that prepare the next generation for the tech economy.
CareYaya’s inclusion in the LinkedIn Top 50 isn’t just a win for one company or one state. It’s a shot across the bow of the established tech hubs. It’s a rallying cry for every Southern entrepreneur who’s been told they need to leave to succeed or to dial-back their ambitions. And it’s a challenge to every investor who’s been playing it safe or overlooking underrepresented founders.
The future of American innovation isn’t confined to a few zip codes on the coasts. It’s distributed, it’s diverse, and it’s knocking on our door right now. The question is: are we going to answer, or are we going to let this opportunity pass us by?
Our time is now. The tools are here, the talent is here, and as CareYaya has shown, the trajectory and recognition can be here. All that’s missing is you stepping up to the plate.
So what’s it going to be, y’all? Are we going to keep playing small, or are we ready to show the world what the new face of American innovation looks like? The choice is ours, but remember: in the world of startups, you’re either disrupting or you’re being disrupted.
The future of American innovation is calling, and it speaks with a Southern drawl. It’s time to answer the call.
Let’s get to work.
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About the Author:
Neal K. Shah is the Chief Executive Officer of CareYaya Health Technologies, one of LinkedIn’s 2024 Top 50 Startups in America. He runs a social enterprise and applied research lab utilizing AI and neurotech to advance health equity for the aging population. Mr. Shah has advanced AI projects to improve neurological care with support from the National Institutes of Health, Johns Hopkins AITC and Harvard Innovation Labs. Mr. Shah is a “Top Healthcare Voice” on LinkedIn with a 45k+ following.
