By CONNING CHU
Contributing Reporter
Troy Fukumoto entered venture capitalism just as the Internet and technology boom was gaining momentum in the late 1990s.
Able to draw upon his background in engineering and business management, he has gone on to become one of the bigger players in Los Angeles venture capitalism.
“It was an opportunity where I could leverage both,” he said.
After receiving bachelor’s and master’s degrees in engineering from the University of Southern California, Fukumoto became a systems engineer for TRW Inc. in Redondo Beach. He then went on to earn an M.B.A. from UCLA’s Anderson School of Management.
After working first in the Silicon Valley and Bay Area, Fukumoto joined Los Angeles’ SunAmerica Ventures in 2000. The firm, which boasts $850 million in capital under management, has some of the deepest pockets on the L.A. venture scene: it is a unit of American International Group Inc., the New York-based insurance services giant.
Fukumoto, who leads direct investment activities, has overseen investments into a variety of technology firms, including E20 Communications Inc., Integrated Micromachines Inc., Network Physics and Procket Networks. He also sits on the boards of Network Physics and Loadstar Sensors Inc.
He said he looks for a sharp, experienced and passionate team, significant intellectual property and a growth market with good margins. There’s also a heavy dose of pragmatism.
“We’ll roll up our sleeves and do the heavy lifting to help make a company a success,” he said. “We realize that it’s not always smooth sailing when dealing with startups and we’re supportive during the rough times.”
Consider Touchdown Technologies, a former optical switch manufacturer based in Baldwin Park. After the technology bubble burst, the market slump proved especially difficult for the startup when telephone companies wouldn’t buy its switches. SunAmerica helped the company reposition itself; it now manufactures products that test semiconductor silicon wafers.
Fukumoto believes the Los Angeles area is a great place for such startups and a huge, underserved market for venture capitalists. There is a highly educated workforce, strong media and tech companies and top flight universities, such as UCLA, USC and CalTech.
“It’s early to compare it to Silicon Valley, but L.A. is gradually developing a richer pool of tech entrepreneurs and tech executives,” he said.
SunAmerica has recently exited or is in the process of exiting several investment leads by Fukumoto outside of Los Angeles.
XenoPort Inc., a Santa Clara-based biopharmaceutical firm completed an initial public offering; Corus Pharma Inc., a Seattle drug manufacturer was sold to Gilead Sciences Inc.; and SenoRX Inc., an Alisa Viejo developer of medical products for the diagnosis and treatment of breast cancer, is in registration for an initial public offering.
