VC Sentiment Survey: Valuations Reach Record Highs As Optimism For a Recovery Remains Solid

Sarah Favot

Favot is an award-winning journalist and adjunct instructor at USC's Annenberg School for Communication and Journalism. She previously was an investigative and data reporter at national education news site The 74 and local news site LA School Report. She's also worked at the Los Angeles Daily News. She was a Livingston Award finalist in 2011 and holds a Master's degree in journalism from Boston University and BA from the University of Windsor in Ontario, Canada.

VC Sentiment Survey: Valuations Reach Record Highs As Optimism For a Recovery Remains Solid

Venture capital dollars are flowing into Southern California startups at a record pace and it's paying off for top Los Angeles investors who are riding the wave.


Valuations jumped in the second quarter for more than half of the investors surveyed in dot.LA's quarterly poll of top Los Angeles venture capitalists — while optimism remained high about the economic recovery.

"It was almost like we ended 2020, we all survived, the vaccine came out, there was a light at the end of the tunnel," said Petra Griffith, founder of Wedbush Ventures, an early-stage venture fund that invests in seed and pre-seed stage companies. "There was a lot of bullishness in the market, it felt like a lot of momentum in the market overall that also spilled in seed stage."

She said while valuations bumped up, she felt the pace slowed down a little bit in the second quarter.

VC investment in the second quarter for the Los Angeles-Long Beach area totaled $8.5 billion, spread across 365 different deals. That's down from Q1's $9.4 billion, but still more than double the investment from the same time period last year ($3.9 billion), according to a National Venture Capital Association and PitchBook report.

And megadeals of $100 million are becoming more common.

Eric Manlunas — another early-stage investor who is also founder and managing partner at Wavemaker — said he's definitely seeing a fair amount of valuation in part because entrepreneurs are seeing inflation happening and the perception is that everybody is more valuable now.

"Some of them are very stubborn about it and they won't budge, and they'll pick and choose term sheets and they'll take their time and they're optimizing for valuation, which I don't blame them for," he said. "Unfortunately, for early-stage investors, we don't like it when things get out of hand, which we think they are, but it is what it is, and you've got to just pick and choose your battle."

Dustin Rosen, founder and managing partner of Wonder Ventures, said valuations reached new highs in the first quarter for him as the pace of deals continued for him into the second quarter. "I wouldn't say it went any higher or sped up, but it certainly didn't slow down," he said.

All of the 33 investors who took the survey said they saw employee headcounts increase last quarter and more hiring is on the horizon among their portfolio companies, though some said they're having trouble retaining employees.

As more capital flows into tech, companies are expanding their teams resulting in more hiring.

Mark Mullen, co-founder of Bonfire Ventures, said his portfolio companies are having a harder time hiring because of fierce competition among tech companies for talent.

"There are more companies getting funded and therefore those companies need to hire more people, but there's more capital at all these companies so they have the ability to perhaps pay more or offer incentives, there's a lot more people offering more," Mullen said.

While smaller firms were always competing against the Amazons and Netflixes, now the entire ecosystem is competing against each other, he said.

Shamin Rostami Walsh, managing director at BAM Ventures, said she is also seeing more difficulty in hiring.

"There are certain roles that almost all portfolio companies need and lots of optionality for the most talented," she said.

"I find that it's harder to find the right person, but people are doing their homework and weighing the options, so once they do accept a role, they stick around the same way they would have historically."

The second quarter hasn't changed most investors's minds about the speed of economic recovery as the effects of the pandemic wane. Although it is noteworthy that the survey was conducted before L.A. County's public health department reinstated its indoor mask mandate.

Manlunas, who calls himself a pathological optimist, is more hopeful. He believes we are heading into the 21st century version of the "Roaring 20s."

"The pent up demand is driving a lot of unusual behavior," Manlunas said. "On the upside, there's a lot of forced savings that's being unlocked right now, being spent on experiences, being spent on material things, being spent on consumer goods," which could lead into a virtuous cycle.

"What the lockdowns have done and what the pent up demand have done, is it could be a nice kick in the butt, so to speak, to jumpstart a nice economic cycle."

"Let's hope it doesn't end like the 1920s," he added.

Most investors surveyed said they're allowing employees to work both in the office and at home using a hybrid model, while 11% are planning on staying remote and 22% said they've already returned to the office.

About 12.6% of new job postings are remote-friendly in Los Angeles

Many workers are quitting rather than working out of an office and many tech companies like Apple and Google, are taking a hybrid approach rather than a full return to the workplace.

While valuations are high, it's not preventing deals from closing. Only three investors said they made fewer deals in the second quarter.

While there has been a record number of VC investment, Krisztina "Z" Holly said it hasn't changed the way Good Growth Capital, which specializes in early-stage complex science and technology startups, invests.

"We do the same due diligence. We have a huge number of great deals coming in the door, we just add a lot of value, it hasn't changed how much we can invest," Holly said.

Looking ahead, Griffith said she is excited to see what the third quarter brings given the creativity she is seeing coming out of Los Angeles.

"It feels like there are a lot of really interesting companies in L.A. that took the last six to nine to 12 months to do research and validate the target market and I've seen a lot of interesting companies in the last six weeks to two months," she said.

"I hope that this is not an aberration, but a larger trend and I'll be curious to see how the next quarter or so plays out."

LA Tech Week 2026: Sunday’s Event Lineup

🔦 Spotlight

LA Tech Week 2026 closes Sunday with one final day of events across Los Angeles. We have organized the remaining lineup by neighborhood so you can finish the week with a few last conversations before everyone returns to their regularly scheduled inboxes.

ARTS DISTRICT

12:00 PM

CARSON

12:00 PM

CULVER CITY

9:00 AM

  • Women in Cleantech & Sustainability Hike and Network: See Details Here
    Women in Cleantech & Sustainability

6:00 PM

  • Founders pitch competition: See Details Here
    Biomorphix solutions, Nightingale regenerative

HOLLYWOOD

10:00 AM

4:00 PM

  • AI International: Film, Music Video & Micro-Drama: See Details Here
    AI International Film Festivals

MID CITY

1:00 PM

OTHER

12:00 PM

  • ORGANIC LIFE LABS™ PRESENTS THE ALIGNMENT LAB: The Science of human performance: See Details Here
    The Blue Room Collective

SANTA MONICA

8:00 AM

1:00 PM

6:00 PM

SOUTH LA

2:00 PM

  • Future Builders : Family STEM Day: See Details Here
    Black L.A. Tech Week (Community Collective)

VENICE

10:00 AM

12:00 PM

  • How to Raise Funds to Fund Any Business Using Digital Products.: See Details Here
    DN Events

VIRTUAL

5:00 PM

WEST HOLLYWOOD

3:00 PM

Each session provides unique opportunities to gain insights, network, and explore various fields of tech innovation. For updates or more event information, visit the official Tech Week calendar.

Download the dot.LA App

LA Tech Week 2026: Saturday’s Event Lineup

🔦 Spotlight

LA Tech Week 2026 heads into the weekend Saturday with more opportunities to learn, meet fellow builders and explore what is being created across the region. Browse the day’s events by neighborhood below and find the gatherings worth leaving the house for.

ARTS DISTRICT

5:30 PM

BEL AIR

5:00 PM

CULVER CITY

10:00 AM

1:00 PM

4:00 PM

DOWNTOWN

11:00 AM

2:00 PM

  • South Asians in Space, Physical AI: See Details Here
    american south asian network

5:00 PM

7:00 PM

HOLLYWOOD

8:00 PM

INGLEWOOD

10:00 PM

LONG BEACH

10:00 AM

12:00 PM

LOS FELIZ

8:30 AM

  • Griffith Observatory Hike with Longevity Cities & Don't Die LA: See Details Here
    Longevity Cities

MALIBU

5:00 PM

MARINA DEL RAY

9:30 AM

  • The Brazen Capital Walk: Connecting Women, Capital & Opportunity: See Details Here
    BrazenEra

6:00 PM

  • Build an AI workflow editor, natively in Angular: See Details Here
    Workflow Builder

SANTA MONICA

7:00 AM

  • Founders Running Club Run in Santa Monica: See Details Here
    Founders Running Club, MongoDb

9:00 AM

  • MOLTEN - Spatial hackathon (ElevenLabs, AssemblyAI, Rokoko, Datafeel...): See Details Here
    Field Lab

2:00 PM

3:30 PM

6:00 PM

7:00 PM

SOUTH LA

7:00 PM

THE VALLEY

7:30 PM

UCLA

11:00 AM

USC

9:00 AM

10:00 AM

10:30 AM

VENICE

8:00 AM

  • Open Air Health Tech: See Details Here
    Open Air Health Tech, Bowshock, Govitamins App

10:00 AM

10:30 AM

11:00 AM

12:00 PM

6:00 PM

  • Bots, Bytes & Bubbles Benefit: See Details Here
    Distinguished Minds Institute dba thinqueBytes®

VIRTUAL

9:00 AM

  • Ask a VP of Sales: Live GTM Office Hours for Early-Stage B2B Founders: See Details Here
    Kat Rucker Consulting Group

11:00 AM

WEST HOLLYWOOD

11:00 AM

  • The 10x Engineer Showed Up. The 10x Organization Didn't.: See Details Here
    Workflow Builder, Tentaro

3:00 PM

WESTSIDE

11:00 AM

2:00 PM

  • Graphic Design & Digital Printing Meetup: See Details Here
    Big Frog Custom T-Shirts & More of West LA

7:00 PM

WESTWOOD

12:00 PM

Each session provides unique opportunities to gain insights, network, and explore various fields of tech innovation. For updates or more event information, visit the official Tech Week calendar.

Download the dot.LA App

LA Tech Week 2026: Friday’s Event Lineup

🔦 Spotlight

The workweek may be winding down, but LA Tech Week 2026 is not finished yet. Friday’s events are organized by neighborhood below, making it easier to choose where to spend the day before the week shifts into its weekend programming.

ARTS DISTRICT

9:00 AM

7:00 PM

BEL AIR

10:30 AM

  • Bel Air Mansion Creative Brunch: Investors, & Artists: See Details Here
    Amino Capital

BEVERLY HILLS

8:00 AM

  • Founders & Builders: Morning Walk/Run + Coffee Meetup: See Details Here
    FitMatchLA
  • Music-Tech : Move with the Global Ikon & Lululemon: See Details Here
    The Global Ikon

8:00 PM

BRENTWOOD

8:30 AM

CULVER CITY

8:30 AM

  • Where, not How: a Roundtable on Scaling AI Adoption: See Details Here
    Mellonhead, Gamma

11:30 AM

4:00 PM

DOWNTOWN

12:30 PM

  • Rocket Launch: A USC Builders Night by TroyLabs: See Details Here
    TroyLabs - USC's premier startup accelerator

1:00 PM

2:00 PM

  • Inner Alignment: Experience Self-trust in Navigating Complexity: See Details Here
    Meridian Collective

2:30 PM

  • From Story to Revenue: How AI Is Reshaping Microdrama: See Details Here
    Storyverse, Soulscape

3:00 PM

  • Reinventing AI Infrastructure: See Details Here
    Karmel Capital, The University of Michigan Ross School of Business

5:00 PM

  • Built Different: Outliers, Underdogs and the Next Breakout: See Details Here
    Forty.5 Capital Ventures

5:30 PM

6:00 PM

  • The Music AI Can't Hear: What's Actually Missing from the Future of Sound: See Details Here
    Motif

6:30 PM

  • HR & PEOPLE LEADERS ROOFTOP HAPPY HOUR . Leadership Signals: See Details Here
    Speech & Mind

EL SEGUNDO

7:00 PM

HOLLYWOOD

10:00 PM

HOLLYWOOD HILLS

12:00 PM

  • Early stage co-founder matching: Virtual Speed Networking: See Details Here
    Kept

INGLEWOOD

7:00 PM

MARINA DEL RAY

3:00 PM

  • South Asians Shaping Digital Media: See Details Here
    american south asian network

7:00 PM

  • Tech Industry Speed Networking Marina Del Rey: See Details Here
    Los Angeles Fun Events
  • The New Wave: The Future of Hollywood In the Age of AI: See Details Here
    american south asian network

MID CITY

8:00 AM

OTHER

8:30 AM

  • Wedbush Ventures x Women in Product Breakfast: See Details Here
    Wedbush Ventures

10:00 AM

12:00 PM

2:30 PM

5:00 PM

  • Get Wired with Senra Systems!: See Details Here
    Senra Systems, Lowercarbon, Stifel

6:00 PM

6:30 PM

7:00 PM

PASADENA

12:00 PM

4:00 PM

  • Pasadena Ascends: VIP Closing Reception, Hosted by Wedbush: See Details Here
    Innovate Pasadena

PLAYA VISTA

10:00 AM

  • AI LAX Summit - Culture meets AI: See Details Here
    Governlayer.AI, AILAXSUMMIT.com, Google

6:00 PM

SANTA MONICA

8:15 AM

8:30 AM

  • Silicon Beach Volleyball Social: See Details Here
    Holland & Knight, JP Morgan, Mucker Capital

10:00 AM

  • Gen AI Observability for Engineering Leaders: See Details Here
    Amazon Web Services

11:00 AM

1:00 PM

  • Future of Photography : Discussing the future of image capture and IP protection. Cigar Lounge: See Details Here
    VICEVERSA EDITIONS
  • Self-Host Frontier AI: Running Open-Weight Models on AWS: See Details Here
    Amazon Web Services

3:00 PM

5:00 PM

  • Gold House x Speedrun Investors Social: See Details Here
    Gold House Ventures, a16z Speedrun

5:30 PM

  • The Autonomous Playbook: Scaling Revenue faster with AI.: See Details Here
    GrupaAI

6:00 PM

7:00 PM

8:00 PM

SUNSET

7:00 PM

UCLA

6:00 PM

  • The Builder's Lounge - Jazz Bar Demo Night with VEST x Cognition: See Details Here
    VEST at UCLA

USC

Fri, Oct 16 · 5:00pm — Sun, Oct 18 · 5:00pm

Fri, Oct 16 · 5:00pm — Sat, Oct 17 · 5:00pm

VENICE

7:30 AM

9:00 AM

  • Content in Tech: Coffee & Creators: See Details Here
    Narrative Content Studio, YT Jobs

11:00 AM

12:00 PM

  • What REALLY Happens After You Raise (But No One Talks About) - Funded Founder Lunch @: See Details Here
    Grow Through Story

2:00 PM

4:00 PM

5:00 PM

  • Sell before you build: See Details Here
    USC Entrepreneurship and Venture Management Association

6:00 PM

  • A16Z | ElevenLabs - Official Afterparty: See Details Here
    ElevenLabs, a16z Speedrun

7:00 PM

VIRTUAL

9:00 AM

  • Ask a VP of Sales: Live GTM Office Hours for Early-Stage B2B Founders: See Details Here
    Kat Rucker Consulting Group

11:00 AM

  • Vibe Marketing in the Age of AI Agents: Live Workshop: See Details Here
    Juliet AI, Inc.

1:00 PM

2:00 PM

WEST HOLLYWOOD

11:00 AM

7:00 PM

  • NO HUMAN, NO CREATIVITY? Who Creates Culture Now?: See Details Here
    xVibe AI, HFE Events

WESTWOOD

9:00 AM

  • UCLA Tech + Society Conference: See Details Here
    Easton Technology Management Center

Each session provides unique opportunities to gain insights, network, and explore various fields of tech innovation. For updates or more event information, visit the official Tech Week calendar.

Download the dot.LA App

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