Venture Capitalists Not Adventurous in L.A.

0

Venture capital funding in Los Angeles County tailed off sharply in the second quarter, hitting lows not seen in nearly 12 years, according to a report released Tuesday.

Venture capitalists invested $74.8 million in local start-ups between April and June, according to the quarterly MoneyTree Report assembled by PricewaterhouseCoopers LLP and the National Venture Capital Association.

That figure is down 40 percent from the first quarter and is the lowest total since the third quarter of 1997, when venture capital funding barely crested $57 million. What’s more, just 18 transactions were announced last quarter, the lowest total since the beginning of 2003.

The largest local transaction during the quarter was a $10.4 million investment in OpenX Technologies Inc., a Pasadena company specializing in online advertising.

Across the Southern California region, which includes Los Angeles, Orange and San Diego counties, venture investment was actually up nearly 10 percent in the second quarter thanks to an uptick in activity in San Diego’s biotechnology sector.

Nationwide, investment was up 15 percent to $3.7 billion, according to the report, but total investment for 2009 is still projected to be at the lowest level since 1997.

No posts to display