L.A. posted its best year for venture capital investment since 2001, topped off by a slight increase in the fourth quarter.
According to figures released Tuesday by the PricewaterhouseCoopers accounting firm and the National Venture Capital Association, 36 Southern California firms received $256 million in venture capital investments in the fourth quarter, up 22 percent from the third quarter and the same amount above the fourth quarter of 2005. Thirty one of the companies were in Los Angeles County and their share of the pot was $216 million.
This increase brought the 2006 total to nearly $1.1 billion, up 24 percent from 2005 and the best showing since $1.25 billion was invested in 2001. Similar results were released from rival accounting firm Ernst & Young LLP on Monday.
“This was the year that venture capital investment really came back to Southern California,” said Randy Churchill, director of business development in the technology practice for the Southern California region of PricewaterhouseCoopers.
“The biggest reason for this is the Web 2.0 phenomenon, with content finally emerging as king,” Churchill said. “We’re seeing the nexus of Internet technology with the entertainment industry.”
