Article by Crunchbase.com (October 27, 2017)
Over the past five years, venture funding to Los Angeles-area startups has quietly exploded. And industry observers predict that momentum will only increase as more startups and funds continue to launch, and grow, in the area.
The region has seen some big successes in the startup world as of late with Snap going public, Dollar Shave Club being acquired by Unilever and the increased growth of companies like Ring (more details on all below).
Suddenly, the Los Angeles metro area is becoming known for more than its Hollywood scene and beaches.
The Deals And Dollars
Venture capitalists pumped $5.32 billion into L.A.-area startups in 2016 (based on rounds of known size), marking a staggering 322 percent increase from the $1.26 billion raised in L.A. companies in 2012. Deal volume surged 72 percent to 673 in 2015 compared to 391 in 2012 before slowing to 556 in 2016 – signaling larger deal sizes.