VCs Fund More Early-Stage Female Founders in SoCal than Rest of US, Finds New Report

Tami Abdollah

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.

VCs Fund More Early-Stage Female Founders in SoCal than Rest of US, Finds New Report

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.

tami@dot.la

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Activision Buys Game Studio Proletariat To Expand ‘World of Warcraft’ Staff

Samson Amore

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

Xbox\u2019s various game developers it now owns: Activision, Blizzard and King.
Courtesy of Activision Blizzard

Activision Blizzard intends to acquire Proletariat, a Boston-based game studio that developed the wizard-themed battle royale game “Spellbreak.”

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https://twitter.com/samsonamore
samsonamore@dot.la

Bling Capital’s Kyle Lui On How Small Funds Can Better Support Young Founders

Minnie Ingersoll
Minnie Ingersoll is a partner at TenOneTen and host of the LA Venture podcast. Prior to TenOneTen, Minnie was the COO and co-founder of $100M+ Shift.com, an online marketplace for used cars. Minnie started her career as an early product manager at Google. Minnie studied Computer Science at Stanford and has an MBA from HBS. She recently moved back to L.A. after 20+ years in the Bay Area and is excited to be a part of the growing tech ecosystem of Southern California. In her space time, Minnie surfs baby waves and raises baby people.
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.

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