Submitted release, edited and augmented.

The Greater Nashville Private Capital Association (GNPCA), in partnership with PitchBook and the Tennessee Department of Economic and Community Development (TNECD), today released its inaugural 2025 Impact Report: Tennessee Private Markets Breakdown, the first comprehensive benchmark of venture capital, private equity, growth equity and private credit activity across the state.

As VNC reported Feb. 17, GNPCA is convening an event commemorating release of findings of the report, this afternoon at the State Capitol.

In today's press release, GNPCA said Pitchbook research confirms that this market has entered a more durable and institutional phase, even as national conditions remain uneven.

Private equity exit value reached a record $18.6 billion in 2025, driven in part by large healthcare transactions. Venture deal count rose to an all-time high of 179 transactions, with invested capital increasing more than one third year over year. Later-stage venture financings, PE growth investments and private credit funds are expanding the capital stack available to companies across the state.

“This report provides a market grade view into our private capital ecosystem,” said Bruce Evans, Chair of the GNPCA board of directors. 

Evans added, “While activity has normalized from recent peaks, the data reflects a deeper and more resilient pool of venture capital, private equity and other forms of risk capital. It is an extremely positive development for entrepreneurs and others in Tennessee’s innovation economy, that this capital is increasingly formed, deployed and reinvested here.”

Findings summarized in GNPCA's release:

• Fundraising reflects momentum. Median time to close for private capital funds shortened to 12.5 months in 2025, faster than the overall U.S. benchmark. VC funds, in particular, closed more quickly than national peers.

• Private equity remains competitive. Although deal volume moderated, exit value reached a record $18.6 billion across 35 transactions. Add-on acquisitions continue to represent a steady pipeline of middle market activity across West and Middle Tennessee, Knoxville and Chattanooga.

• Venture capital demonstrates resilience. Companies secured a record 179 VC deals in 2025, with invested capital rising to $1.2 billion. Healthcare represents half of the state’s ten highest valued VC-backed companies.

• Local investor participation is increasing. The share of VC transactions backed exclusively by in-state investors increased by more than 60 percent in 2025, reflecting a maturing capital base and deeper networks.

• Growth-stage financing pathways are expanding. Since 2020, 333 later-stage venture financings and 188 PE growth investments have supported scaling companies. Private credit funds based in the state have raised $7.5 billion across 18 funds, providing complementary non-dilutive financing options.

“This data reinforces what we are seeing across the state,” said Stuart C. McWhorter, deputy governor and TNECD commissioner. “The connectivity between investors, research institutions and operating companies continues to strengthen Tennessee’s long-term competitiveness.”

GNPCA said the findings published today align with multiyear data pointing to sustained ecosystem acceleration.

Today's press release said that in a separate ecosystem analysis conducted by PitchBook covering Q4 2019 through Q3 2025, Nashville ranks No. 1 globally for growth and No. 29 overall, an improvement from No. 62 in the prior edition. The overall ranking reflects both development and growth, signaling expansion alongside institutional depth. Nashville also ranks among leading global markets for healthcare venture activity.

GNPCA observes that while the new report focuses on statewide capital formation, these broader indicators suggest that recent performance reflects a longer-term trajectory, rather than a single-year spike. Today's release also notes:

• Within the state, Nashville anchors healthcare, technology and later-stage capital formation.
• Memphis maintains strength in logistics and supply chain.
• Chattanooga, Knoxville and Oak Ridge contribute to advanced manufacturing, energy innovation and deep technology development. 
• Sustained corporate investment and research collaboration continue to reinforce the foundation for private capital expansion.

GNPCA said it views benchmarking as core infrastructure for private markets. By establishing consistent and transparent data, the association aims to strengthen investor connectivity and elevate the state’s national private capital profile. 

EDITOR'S NOTES

Visit the GNPCA website for the report and release. VNC cached the report here.

The full 2025 report includes commentary by abovementioned Evans and McWhorter, and by GNPCA CEO Judith Byrd.

The industry association--which today has 84 members among its still-growing ranks--was created in 2023 to help strengthen the state's private capital ecosystem's connections within national private markets, while supporting venture capital, private equity, growth equity, private credit and related market participants. 

GNPCA is a 501(c)(6) nonprofit. Related VNC coverage of GNPCA here.

PitchBook is a Morningstar company. Pitchbook Custom's lead on the project was Senior Analyst Annemarie Donegan. She completed her technical portion of the Impact Report 11 days ago, on Feb. 23. Though macroeconomic and geo-political factors can sometimes quickly change market dynamics, such factors were beyond the scope of this project.

Also supporting the research-report project were Nathan Buttrey,  a senior advisor to Commissioner McWhorter via TNECD Office of Innovation; Shelby McKeown, Edison Partners; and, Gregory Papajohn, Archie Group.

VNC notes that the report released today is an effort to benchmark--against a national backdrop--certain aspects of our state and substate regional private-capital ecosystems' structure, performance, potential challenges and opportunities, dynamics at work, plausible advantages, etc.

As designed from the outset, the results of this particular initiative are more suggestive and encouraging, rather than predictive.

Nonetheless--as the sponsors have indicated--today's report represents a new armature or infrastructure for further efforts.

VNC notes that, while broadly welcoming multiple classes of private-capital investors, GNPCA has from the outset emphasized the importance of PE and VC capital, connections and dealflow. 

Meanwhile, the ranks of earlier-stage investors have also expanded, particularly in the state's four largest cities.

Perhaps, more Angels and other champions of improved capital access for pre-Seed, Seed and early-growth-stage companies will become more highly engaged. VNC

. last edited 5 March 2026 1532