Los Angeles Business Journal

Venture Capital Spending Picks Up Locally

By James Rufus Koren Originally published July 19, 2013 at 2:15 p.m., updated July 19, 2013 at 12:20 p.m.

Los Angeles companies raised nearly a quarter billion dollars from venture capital firms in the second quarter, an increase over a sluggish start to the year, according to a report from accounting firm PricewaterhouseCoopers and the National Venture Capital Association.

Tech and biotech firms led the way, with Venice photo-messaging company Snapchat Inc. raising $60 million and West L.A. biotech company Kite Pharma raising $25 million. Those deals accounted for nearly 40 percent of the $247 million raised by local companies.

Other local firms raising money in the quarter included game console-maker Ouya Inc. and subscription airline service Surf Airlines Inc.

Nationwide, venture capital firms invested $6.7 billion in the quarter, up from $6 billion in the first quarter, according to the PwC/NVCA MoneyTree report released Friday.