Overall, great news for our fair city with a 25% increase in funds raised in 2013 over the year before. This last year, we saw a record high of over $1 billion raised with 200 launches and 25 successful exits which yielded $1.11 billion.
These figures, among others, indicate LA’s digital startups aren’t simply keeping pace with past years, but exceeding them.
Snapchat, the messaging pioneer leads the charge with a staggering $123 million raised (and a valuation of $3-4 billion) even amongst a strange series of uncertainty surrounding their denial of Facebook’s $3 billion cash offer and security leaks.
Based in a city traditionally known for high profile media antics and headline reports, I guess it’s somewhat business as usual, but even more important to note for the startup community are the number of significant contributions across the board.
JustFab, the ultra-successful fashion membership company, upped the ante with two additional rounds of funding that totaled $55 million. Next in line was content delivery network Edgecase Networks with a $54 million round in July, a few months before being acquired by Verizon for $350 million.
9 more companies weigh in with $25 million fund raising totals and impressively, 100 additional companies did their part in raising $1 million or more in capital.
Ultimately, these are some important figures to take in as we see major growth, even during economic hardships. The fact that 180+ VC’s and angels from across the country have invested indicates there’s something significant happening in the City of Angels’ tech sector.
Some words from DFJ Frontier Managing Partner, Scott Lenet:
“When you consider the rate of new company creation, the healthy financing environment and the exits demonstrated in 2013, it’s clear that LA’s digital ecosystem is in a virtuous cycle. The latest Built In LA report shows nice trends in the continued growth of Los Angeles’ equity economy and entrepreneurial culture.”
Be sure to refer to the infographic below and visit Built In LA for the full report.
Originally posted by the good people at Built In Los Angeles.