- 🌴 LA Firms Weigh In on California's Groundbreaking VC Diversity Law
🌴 LA Firms Weigh In on California's Groundbreaking VC Diversity Law
dot.LA Weekly Update
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Good Morning Los Angeles,
We want to acknowledge that it has been a long difficult week for many and we hope that everyone is taking care of themselves.
California Governor Gavin Newsom signed Senate Bill 54, the first U.S. law targeting diversity in venture capital. Starting March 1, 2025, VC firms operating in the state must annually report founder diversity. 📝🌍🤝
Image Source: Cedric Letsch
The law pertains to the following venture capital firms:
Headquartered in CA
With operations in CA
That have invested in companies that operate or are based in CA
That have received investments from residents of CA
They are required to annually report demographic data of the founders they support, including race, disability status, and sexual orientation. This information will be aggregated and made public, fostering transparency and accountability within the industry. The bill has been met with enthusiasm from tech policy advocates, who hope it will lead to increased funding for startups led by women, Black, and Latinx founders, addressing historical disparities in venture capital allocation.
In Los Angeles, pioneering firms such as M13 and Slauson & Co. are at the forefront of embracing the groundbreaking Senate Bill 54. Anna Barber, a Partner at M13 and Chair of the Pledge LA Advisory Committee, is dedicated to expanding access to capital for underrepresented founders and fund managers. M13, in fact, voluntarily tracks the diversity of their portfolio founders, understanding the pivotal role that data and accountability play in this pursuit. For Pledge LA, Senate Bill 54 represents a potential milestone towards achieving heightened transparency and uniform diversity across portfolios in California's venture ecosystem.
Slauson & Co.’s venture capital approach has been rooted in transparency and inclusivity from the very beginning based on a deep-seated belief in the untapped potential within historically underrepresented communities. They emphasize that transparency around inclusivity, far from being limiting, has exceeded expectations and has led to founders from diverse backgrounds approaching them with innovative ideas and businesses. Find out more about Slauson & Co.’s journey of transparency and diversity here.
Some organizations have expressed initial concerns about the law and potential unintended consequences and even Governor Newsom acknowledged the need to refine the bill's language for effective implementation and plans to address any problematic provisions in the 2024-2025 Governor's Budget. Moving forward, advocates aim to push for similar legislation in other states and countries, with the ultimate goal of fostering greater inclusivity and equity in venture capital investments. 👥💸📈
🎉 Don’t forget about our referral contest this month! 🎉
The contest is simple: whoever refers the most friends to dot.LA using our referral program by October 31st will get a coffee and conversation with Zillow, Pacaso, and dot.LA co-founder Spencer Rascoff, where you can pitch him, get business advice, or just shoot the breeze. This is a great opportunity for any current or future entrepreneur, so good luck referring! ☕️☕️☕️
P.S. If you’re not based in LA, you can hop on a Zoom instead 💻
🤝 Venture Deals
Commons Clinic, a startup that provides in-person and virtual orthopedic care to patients, raised a $19.5M Series A led by RA Capital Management, with participation from Time BioVentures and previous investors Floating Point and Courtside Ventures. - learn more
SuperOps.ai, a startup that creates cloud-native tools for managed service providers, raised a $12.4M Series B round co-led by Addition and March Capital, with participation from Matrix Partners. - learn more
Kino Studios, a startup that provides filmmakers with tools to create, engage, and monetize their target audience before distribution, raised a $2M+ Pre-Seed Round from Sequoia Capital's scout program, Slow Ventures, Metaweb Ventures, Genius Ventures, The Near Protocol, and Blockchain Founders Fund. - learn more
Sotai, a startup that aims to streamline the modeling of AI and machine learning applications, resulting in models that are easy to train, constrain, and comprehend, raised a $2M Seed Round led by Four Rivers. - learn more
Auriga Space, a startup developing ground-breaking electromagnetic technology for responsive, lower-cost, and sustainable space launches raised a $5M Funding Round led by Tucks Ventures with participation from Unlock Venture Partners. - learn more
Proteus Space, a satellite design and manufacturing startup, raised a $4.2M Seed Round led by Moonshots Capital with participation from Lavrock Ventures, The Veteran Fund, Mana Ventures, AIN Ventures, Capital Factory and Industrious Ventures. - learn more
Wilshire Lane Capital participated in a $5.2M Seed Round for Ounce, a startup that partners with payers and housing organizations to embed trained community health workers within affordable housing properties. - learn more
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Rho is your trusted and reliable financial support that can help you diversify and manage your cash efficiently. Manage all your cash and spending in one system:
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“Rho has made it their mission to help companies like ours. By giving us the ability to loop corporate cards and expense management into one place…we’ve been able to close our book smooch faster each month and automate our spend from end to end.” - Dr. Squatch.
Join other startups like Dr. Squatch, Sundae, Canvas, and Runway that are making finance frictionless with Rho.
✨Featured Event (11/9)✨
RECURRING REVENUE CONFERENCE on November 9th in Culver City
Southern California's premier SaaS and Subscription conference, this one-day event draws 600+ top founders, executives, investors, and Cloud experts. Experience a dynamic program with 20+ sessions, including keynotes, fireside chats, breakout sessions, and roundtable discussions. This year's insights span AI, metrics that matter, scaling strategies, making a pivot, and more. Keynotes include ChowNow and HackerOne CEOs. Attendees will enjoy plenty of networking time during breakfast, lunch, coffee cart breaks, and cocktails on the patio. Join us on November 9th at the Culver City Hilton to learn from industry leaders in the SaaS and subscription ecosystem.
Learn more and register using code DOTLA229 for a discounted ticket rate of $229. Register here.
If you're an early-stage founder, apply here for a $59 ticket.
Want your event featured? Shoot us an email!
📅 LA Tech Calendar
Monday, October 16th
Tuesday, October 17th
AI X Mobility: Navigating the Future of AI in Transportation - Join CoMotion CEO John Rossant Tuesday evening in Santa Monica as he leads an exciting conversation about the revolution that AI is bringing to the future of transportation.
Wednesday, October 18th
Global Growth Open Mic Night - Join Grow Big for a riveting afternoon event in Marina Del Rey where top brands and industry leaders take the stage, one after the other, to spill the beans on their electrifying journeys to digital global success.
Entrepreneur's Dinner - Santa Monica - Entrepreneur dinner to get together, share ideas and support one another. Entrepreneurs of all levels are welcome. Most attendees are full time business owners. New business owners and people running a businesses on the side are also welcome.
South Bay Tech & Aerospace Happy Hour - Join Startup Coil and Starburst’s tech and aerospace happy hour in El Segundo on Wednesday evening.
Thursday, October 19th
AI Life Summit 2023 - Join AI LA for their fifth annual Life Summit where cutting-edge healthcare meets groundbreaking innovation. The dialogue is on 'Public Health' this year and will delve deeper into the transformative power of artificial intelligence.
LA Women in Tech - Beach Walk & Career Chat - Join Clutch Talent and NY Women in Tech to chat about your career, share information on jobs, connect with other women in tech and enjoy some fresh air and a light walk.
Thursday, October 26th
Expert DOJO Fall 2023 Cohort Demo Day! - Join Expert Dojo’s fall demo day to learn about the investment opportunities in their 10 newest investments! Sectors vary from artificial intelligence to gaming!
Have an awesome event coming up? Reach out to be featured on next week’s Newsletter!
🌍 Around The Internet
Los Angeles Secures 4th Spot in PitchBook’s Global VC Ecosystem Rankings
Los Angeles' prominent position is due to its high development score, which takes into account factors such as deal value, deal count, exit value, exit count, fund value, and fund count from Q3 2017 to Q2 2023. Notably, Los Angeles lags behind the other leading VC developed ecosystems (San Francisco, New York, Beijing, and Shanghai) in terms of fund count. The average number of funds in the other ecosystems exceeds that of LA by over 200%. Despite this substantial difference in funds, both deal count and exit counts for these top VC developed ecosystems were only moderately higher than those in LA, with averages of 30% and 24% respectively shining light on the the substantial startup scene in Los Angeles. Find the full report here.
Source: Pitchbook as of June 30, 2023
📙 What We’re Reading
Discover how the streaming landscape is evolving as Los Angeles-based services face rising subscription costs, shedding light on the industry's shift towards on-demand content and its impact on consumers' wallets in an era of economic uncertainty. - read more