
Get in the KNOW
on LA Startups & Tech
XVCs Fund More Early-Stage Female Founders in SoCal than Rest of US, Finds New Report
Tami Abdollah was dot.LA's senior technology reporter. She was previously a national security and cybersecurity reporter for The Associated Press in Washington, D.C. She's been a reporter for the AP in Los Angeles, the Los Angeles Times and for L.A.'s NPR affiliate KPCC. Abdollah spent nearly a year in Iraq as a U.S. government contractor. A native Angeleno, she's traveled the world on $5 a day, taught trad climbing safety classes and is an avid mountaineer. Follow her on Twitter.

Women entrepreneurs in Southern California are more likely to receive early-stage funding from the nation's top 100 VC firms than if they live elsewhere, according to an exclusive new look at a report on U.S. VC investment in diverse founders.
The report, previewed Wednesday at dot.LA's summit, was conducted by RateMyInvestor in partnership with Diversity VC. It looked at investments under $100 million made by the nation's 100 most active VC firms by deal numbers during 2018 and 2019. It also accounted for the "perceived" race and gender of founders, said Bennett Quintard, co-founder and COO of RateMyInvestor.
The survey fills a glaring gap in official data around the racial makeup of companies receiving VC-backed investment. Earlier this week, dot.LA reported that VC investment in all-female founded companies in L.A. dropped 70% in the third quarter compared to last year, while all male founded companies saw a 385% bump, according to an analysis of PitchBook data. But PitchBook does not track data around race.
Of the total capital invested nationally, about 5.5% went to 429 founders and 187 startups in Southern California.
The report found 84% of capital in the U.S. went to male founders. But in L.A., female founders fared better. The percentage of all-female teams that received funding is almost twice as high as it is nationally. Female and mixed-gender teams were likely to receive larger seed and Series A checks than the national average, and mixed-gender teams tended to raise more money than single-gender teams.
Women who received capital were more likely to have an Ivy League education than men — 20% versus 12.75%. And everyone was more likely to be white. Of the 429 L.A. founders, only two were LatinX and nine Black.
"To be honest with you, I'm not surprised, and I'd be surprised if anyone was surprised by the data," said Eyana Carballo, manager of global commercial strategy & IP at BCG Digital Ventures, the corporate venture arm of Boston Consulting Group.
"'I've seen VCs really increased portfolio diversity by investing in gender and gender equity, from board and founder representation to, honestly, target-setting: percentages of funding reserved for women-led startups," she said. "But diversity isn't a side hustle, nor is how we attack it. We tend to attack it like in a singular monolithic way. I would love to see firms and stand up to solve more structural and institutional diversity by weaving more equitable solutions into every business outcome."
Anthony Zhang, co-founder and CEO of Vinovest said that "it takes years for an ecosystem to change at the Series A or later stage." He added: "It doesn't seem like those founders that maybe have started their company a little bit earlier, have seen that support."
Other issues that crop up among racially diverse founders is the inability to access the same "friends and family" capital and networks many white founders start off with. On the flip side, "disenfranchised communities of color" are often left on the sidelines in terms of getting opportunities to write checks to create generational wealth, Carballo said.
Quintard acknowledged that "Asia is a massive, massive place" and that the data should include a better breakdown of data that differentiates between Asian Americans from different geographic areas.
- Navigating the Venture Capital World as a Black Person - dot.LA ›
- MaC Venture Capital's Marlon Nichols on 'Diversity Theater' - dot.LA ›
- Can Venture Capital Solve Its Whiteness Problem? - dot.LA ›
- Ten Venture Capital Firms Commit to 'Diversity' Rider' - dot.LA ›
- LA Female Founders See Big Drop in Funding - dot.LA ›
- Ranking LA’s Biggest VC Funds of 2020 - dot.LA ›
- Halogen Ventures Closes $21 Million Round to Fund Women - dot.LA ›
- Two Female Founders on Managing Motherhood and Career - dot.LA ›
- barre3 Co-Founder Sadie Lincoln On Building Your Dream - dot.LA ›
- dot.LA's Venture Capital Survey for Q1 2021 - dot.LA ›
- LA's Top VCs Are Watching These 10 Female Founders - dot.LA ›
Tami Abdollah was dot.LA's senior technology reporter. She was previously a national security and cybersecurity reporter for The Associated Press in Washington, D.C. She's been a reporter for the AP in Los Angeles, the Los Angeles Times and for L.A.'s NPR affiliate KPCC. Abdollah spent nearly a year in Iraq as a U.S. government contractor. A native Angeleno, she's traveled the world on $5 a day, taught trad climbing safety classes and is an avid mountaineer. Follow her on Twitter.
Subscribe to our newsletter to catch every headline.
Activision Buys Game Studio Proletariat To Expand ‘World of Warcraft’ Staff
Samson Amore is a reporter for dot.LA. He previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Send tips or pitches to samsonamore@dot.la and find him on Twitter at @Samsonamore. Pronouns: he/him
Activision Blizzard intends to acquire Proletariat, a Boston-based game studio that developed the wizard-themed battle royale game “Spellbreak.”
VentureBeat first reported that the Santa Monica-based publisher was exploring a purchase, noting its ongoing mission to expand the staff working on Blizzard’s hit massively multiplayer online game “World of Warcraft,” which launched in 2004.
Proletariat’s team of roughly 100 people will be merged into Activision’s “World of Warcraft” team to work on its upcoming expansion game. Though there’s no release date as yet for the title, “World of Warcraft: Dragonflight” is expected to debut before the end of this year.
Activision did not immediately return a request for comment. Financial terms of the deal were not available.
This Proletariat deal is Activision's latest push to consolidate its family tree by folding its subsidiary companies in under the Blizzard banner. More than 15 years after it bought out New York-based game developer Vicarious Visions, Activision merged the business into its own last year, ensuring that the studio wouldn’t work on anything but Blizzard titles.
The deal could also have implications for workers at Activision who have looked to unionize. One subsidiary of Activision, Wisconsin-based Raven Software, cast a majority vote to establish its Game Workers Alliance—backed by the nationwide Communications Workers of America union—in May.
Until recently, Activision has remained largely anti-union in the face of its employees organizing—but it could soon not have much of a say in the matter once it finalizes its $69 billion sale to Microsoft, which said publicly it would maintain a “neutral approach” and wouldn’t stand in the way if more employees at Activision expressed interest in unionizing after the deal closes.
Each individual studio under the Activision umbrella would need to have a majority vote in favor of unionizing to join the GWA. Now, Proletariat’s workforce—which, somewhat ironically given its name, isn’t unionized—is another that could make such a decision leading up to the Microsoft deal’s expected closing in 2023.
Samson Amore is a reporter for dot.LA. He previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Send tips or pitches to samsonamore@dot.la and find him on Twitter at @Samsonamore. Pronouns: he/him
Snap Officially Launching ‘Snapchat Plus’ Subscription Tier
Kristin Snyder is an editorial intern for dot.la. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
Snap is officially launching Snapchat Plus, a paid subscription plan on Santa Monica-based social media company’s flagship app.
Snap is now the latest media company to tack a “plus” to the end of its name—announcing Wednesday that the new service will provide users with “exclusive, experimental and pre-release features” for the price of $3.99 a month. The first features available to paying subscribers include the ability to customize the style of app’s icon, pin a “BFF” to the top of their chat history and see which users have rewatched a story, according to The Verge.
The new product arrives after Snap confirmed reports earlier this month that it was testing Snapchat Plus—though the version that it has rolled out does not incorporate the rumored feature that would allow subscribers to view a friend’s whereabouts over the previous 24 hours.
Snapchat Plus will initially be available to users in the U.S., Canada, U.K., France, Germany, Australia, New Zealand, Saudi Arabia and the United Arab Emirates. While certain features will remain exclusive to Plus users, others will eventually be released across Snapchat’s entire user base, Snap senior vice president of product Jacob Andreou told The Verge. (Disclosure: Snap is an investor in dot.LA.)
The subscription tier introduces a new potential revenue stream for Snap, which experienced a “challenging” first quarter marked by disruptions to its core digital advertising market. However, Andreou told The Verge that the product is not expected to be a “material new revenue source” for the company. He also disputed that Snap was responding to its recent economic headwinds, noting that Snap had been exploring a paid offering since 2016.
Despite charging users, Snapchat Plus does not include the option to turn off ads. “Ads are going to be at the core of our business model for the long term,” Andreou said.
Snap is not the first popular social media platform to venture into subscriptions: Both Twitter and Tumblr rolled out paid tiers last year, albeit with mixedresults.Kristin Snyder is an editorial intern for dot.la. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
Bling Capital’s Kyle Lui On How Small Funds Can Better Support Young Founders
On this episode of the LA Venture podcast, Bling Capital’s Kyle Lui talks about why he moved earlier stage in his investing and how investors can best support founders.
Lui joined his friend—and first angel investor—Ben Ling as a general partner at Bling Capital, which focuses on pre-seed and seed-stage funding rounds. The desire to work in earlier funding stages alongside someone he knew well drew him away from his role as a partner at multi-billion-dollar venture firm DCM, where he was part of the team that invested in Musical.ly, now known as TikTok.
Bling primarily focuses on entrepreneurs looking to raise around $1 million to $3 million who are often early in their careers as founders. Lui said Bling evaluates companies on characteristics that go beyond whether they like the founder or feel that the market looks good. Instead, he said they take a hard look at the available company data, and quickly respond.
“And we send it back to them and say, ‘Okay, this is what's working, what's not working’,” Lui said. “And then create the playbook for them on how to find product market fit and get to like, ‘These are the milestones you actually need to hit’.”
When considering companies, Lui said Bling looks at the founder, the market, the company’s current traction and differentiation while asking the founder the questions they would expect to get at Series A and Series B funding rounds.
“One thing that I really admire about what [Ling’s] built with Bling is the consistency and the processes and playbooks— everything from the way that we evaluate deals to the way that we work with our portfolio companies,” Lui said. “Everything is kind of around playbooks and operationalizing things and also iterating to do those processes better.”
As part of its work to support founders, Bling maintains an extensive product council, which connects tech executives with the founders in Bling’s portfolio. Bling also has created numerous self-serve resources for founders so they can easily tap into the fund’s network and shared knowledge.
“We have a bunch of playbooks that we introduce to companies around how to hire efficiently, how to negotiate with counterparties, how to think about the founding team, business development…We just have these different things that we start to train our entrepreneurs on,” Lui said.
dot.LA Editorial Intern Kristin Snyder contributed to this post.
Click the link above to hear the full episode, and subscribe to LA Venture on Apple Podcasts, Stitcher, Spotify or wherever you get your podcasts.