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Insights and Opinions: What's Ahead for SoCal Startups?

socalTECH

Market swings, geopolitical tensions and shifting trends always have the potential to throw us off course. Dollar Shave Club, The Honest Company, Ring, Snap, Tinder, Service Titan and ZipRecruiter are examples of SoCal startups that have made a major mark in the past decade, some in less than half that time.

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Understanding What’s Going on in #LATech

Both Sides of the Table

Back then only 15% of our dollars were invested locally whereas today 50% of our dollars are invested in LA. Of course we compete from time-to-time but you’re way more likely to find us binding together to build a great tech ecosystem than fighting or bad-mouthing each other. Don’t we know it. We love LA!

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Another Major Win for LA Tech

Both Sides of the Table

But one tech news story stood out for me — the fact that LA-based Dollar Shave Club (DSC) was sold to Unilever for $1 billion. So of course I would love to have been an investor in DSC.

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How Do I Feel About the Snap IPO Given I Didn’t Invest?

Both Sides of the Table

Of course that was a wrong narrative for both companies. But of course we all need the space to be young, to experiment, to do stupid things and not to have it define our entire future. I had a narrative in my head that I didn’t want to fund apps that would help husbands cheat on their wives or help kids send naked photos.

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Tx Zhuo On LA's Newest Venture Fund, Fika Ventures

socalTECH

But now, I see that these highly technical graduates are excited about technology companies here, particularly because of companies like Snap, Dollar Shave Club, and Cornerstone OnDemand. Four or five years ago, when I'd speak to college seniors at the top local colleges, technology was not their first choice of industries.

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More Great News for #LATech – Crosscut Ventures Raises $75 Million Fund

Both Sides of the Table

This week Michael Dubin’s startup Dollar Shave Club announced a $75 million funding round at a rumored $650 million valuation. Few will know the kinds of risks you guys took in charting your own course but I had a ringside seat. LA has grown up a lot over the past 5 years. Together we are all stronger.

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