Venture-backed companies accounted for about 2% of all jobs in Georgia in 2020, according to a new study from the National Venture Capital Association, Venture Forward, and the University of North Carolina Kenan Institute of Private Enterprise. That’s about 100,000 jobs.
Venture-Backed Startups – Reibus International Inc.
Last year, Reibus International Inc. CEO John Amstrong hired 100 people. This year, he is hiring another 100. In 2021, a hiring spree is made possible by $100 million of venture capital. It did pour into the supply chain technology. It is a typical trajectory of venture capital dollars. In fact, the massive funding rounds are translating into more jobs.
As Atlanta’s startup ecosystem does mature, the number is poising to grow. Plus, last year, Georgia startups did raise more venture capital than ever before. Also, hiring initiatives do often follow those raises.
Wealth of Resources and Investment Firms
However, the bulk of the state’s venture-backed jobs is in the metro Atlanta area. This is according to the NVCA report. Also, the city does have a wealth of resources and investment firms to thus support startup growth.
In venture capital, $205 million was raised by Stord, another Atlanta supply chain technology startup. It did grow from 160 to 400 employees last year. Flock, a surveillance tech startup, has raised $380 million. Now, it has more than 350 employees after four years in business. FullStory, a digital experience startup, has pledged to double its 300-person team. It was after a $100 million round last year.
Armstrong said most of Reibus’ venture capital investments did go toward hiring. Also, without those investments, Reibus would, in fact, have only been able to hire 25 people in 2021 instead of 100.
“Moreover, being able to anticipate the challenges that do lie ahead and then proactively plan for its means that our growth has been a relatively smooth ride,” Armstrong said. “Also, we can hire that person ahead of time. That is when the demand hits, they would prepare for success.”
In fact, Reibus has a payroll of $1.8 million per month. Therefore, a majority of those employees are in its local headquarters, Armstrong said.