With venture capital pouring record sums into Los Angeles tech, small startups are seeing a boon. Seed deals hit new highs in the first half of this year, surpassing $ 330 million in 116 startups, according to data from AmplifyLA Seed’s latest LA Seed report.
This translates into record growth for the Southern California startup scene, where companies from
delivery software to CBD supplements have brought in millions of dollars to jumpstart growth.
For Los Angeles, the pandemic continues to boost both e-commerce and consumer products.
This trend includes a wide variety of services, spanning “everything from SaaS companies creating tools to streamline e-commerce at scale, to new digitally native brands and innovative remote market models,” Amplify Senior Associate Connor sundberg written in the report.
Still, Los Angeles start-ups could be lagging slightly behind the larger fundraising trend. Compared to the first half of 2020, the start-up transaction volume in the city grew by 35% in 2021.
During the same period, global seed funding has jumped 40% year-over-year, according to a global risk report recently released by Crunchbase. Despite the ongoing pandemic, “$ 6 billion was invested in more than 3,500 early stage startups in the first half of” 2021, the same report estimates.
Los Angeles-based companies took in $ 139.3 million out of 53 rounds in the first quarter, and those numbers increased the following quarter to $ 191 million and $ 63, respectively.
During this period, the average seed deal size in the city has increased by about 20%, from an average of $ 2.4 million last year to nearly $ 2.9 million. According to Amplify, LA has seen more than $ 2.5 million to $ 5 million in fundraising than ever before in 2021.
This year, e-commerce and consumer-focused increases included Cartwheel, which raised $ 1 million to help restaurants adopt delivery apps, and Ready, Set, Food !, which got a fundraiser. $ 3.5 million to help parents safely introduce their babies to common allergens.
By industry, SaaS startups continue to absorb the most seed dollars in Los Angeles. They raised $ 121.2 million in 44 companies during the first half of the year.
Recent SaaS increases have included Preveta, which raised $ 2 million to “be a game-changer for early cancer detection,” and Wonder Dynamics, which grossed half a million dollars more to develop an AI-powered visual effects tool for low-budget filmmakers.
From your Articles site
Related articles on the web