- PledgeLA's Venture Data Report Shows Progress but not Perfection for LA VCs
PledgeLA's Venture Data Report Shows Progress but not Perfection for LA VCs
dot.LA Weekly Update
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The 2023 PledgeLA Venture Data Report serves up a tech-infused reality check with a small side of optimism, like when you failed an exam but took consolation in the fact that you didn’t fail quite as hard as everyone else in the class. 🤓📊📈
Image source: Getty Images
PledgeLA is a coalition of tech companies and venture capital firms working to increase diversity, equity, and community engagement by holding the region accountable with quantifiable progress tracking. Their report followed the investments of 75 LA-based venture funds in 2022, including regional powerhouses like Upfront Ventures, M13, and Fifth Wall.
Some key takeaways: in the report, 50% of all companies receiving funding from a PledgeLA-tracked venture fund were led by an all-white founding team, while companies with all Black or Latinx founders received only 9% of funding rounds, and all-female founding teams received a paltry 11% of funding rounds. Not super representative of the diversity in Los Angeles.
That said, in comparison to the national averages, LA wasn’t so bad. We saw a higher representation of all-female, Black, and Latinx founding teams relative to the US at large. Nationwide, teams led by Black and Latinx founders accounted for <3% of venture deal count according to data from Crunchbase and Techcrunch. And across the US, all-female founding teams accounted for 6.8% of venture rounds in 2022 according to Pitchbook.
So where do we land?
On the negative side, there is still a long way to go to achieving representative venture funding in the LA ecosystem, but we can see that Los Angeles' VC firms have harnessed their unique energy to begin to address these disparities. Firms with diversity-focused theses and those helmed by underrepresented minority leaders are playing the role of superheroes, making investments in Latinx, female, and Black founders at a pace that rivals a speedy express delivery. This offers a promising vision for the future, echoing a sentiment that the city's innovation ecosystem is actively redefining the rules of the game on a national scale.
To better grades ahead. 💯
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🤝 Venture Deals
⚒️ Open Roles
Operations Associate @ NEXT Careers
LA-based NEXT Careers is hiring an Operations Associate. This role involves both operations and community-facing support for Fellows in the NEXT program, who are mid-career and exec-level startup job-seekers. Hybrid 3 days per week in Culver City or Playa Vista. You'll get to meet and help support hundreds of the most talented people on the market right now. Reach out if you’re interested, and we’ll connect you to the team, or apply directly here.
📅 LA Tech Calendar
Friday, August 18th
Founders Live LA🗽 - This in-person event is your opportunity to network with like-minded entrepreneurs, investors, and industry experts!
Monday, August 21st
Tech Networking - Studio City!🗽 - Bringing the thriving tech community of Los Angeles together once again, in the Valley!
Tuesday, August 22nd
Develop a Successful Blockchain Tech Startup Business Today! - Blockchain Startup Hackathon and Workshops
Wednesday, August 23rd
Los Angeles Film & NFT Web3 Meetup🗽 - NFT's in Film/Media, and Music will shape all areas/facets of our daily lives!
Thursday, August 24th
Other events to add to the calendar
🗽 - Free
Have an awesome event coming up? Reach out to be featured on next week’s Newsletter!
🌍 Around The Internet
We are exiting the growth-focused subsidized streaming service chapter and entering the profitable streaming service phase with prices increasing on average by nearly 25% over the next year (yikes!) to offset losses and achieve profitability. 💸🎥 📺
This trend includes companies like Disney, Netflix and others as they test customer loyalty and the tolerance for higher costs. To counter churn, ad-supported options and bundling are being offered, with the industry navigating a delicate balance between retaining subscribers and increasing revenues.
What's your ride or die streaming service?
Which streaming service can you not live without?
📙 What We’re Reading
The the CuratedLA platform contains a daily feed of news, eats, events, happenings, discussions, and LA need-to-knows without showcasing political opinions or morbid headlines; to have fun with wit and positivity while creating an LA vibe.
We’re also reading…
Pacaso’s Spencer Rascoff on the Revitalized Experience Economy and More Pandemic Shifts - read more
Video game voice actors have a keen interest in the (potential) AI protection outcomes resulting from the SAG-AFTRA strike - read more
NASA’s Psyche mission is schedule to take off in early October - read more
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