Venture capitalists boosted their investments in Los Angeles County in the second quarter, with innovative social media and e-commerce firms dominating the list of top deals.

The Silicon Beach area, centered in Santa Monica, continued to shine, grabbing 44% of total venture dollars invested in L.A. County, up from 38% in Q1.

Still, the L.A. region overall remained well behind Silicon Valley, New York City and Boston, in what was a red-hot quarter for venture financing nationwide.

L.A. County companies attracted $333 million in venture capital in the quarter ended June 30, up 16% from the second quarter of 2013, according to data firm CB Insights. The number of deals, however, totaled 35, down modestly from a year earlier and from the first quarter.

By contrast, venture capital investments nationwide totaled $13.88 billion in the latest quarter, up a blistering 98% from the year-earlier total and the highest since the second quarter of 2001.

For L.A., the jump in dollars invested, with fewer deals, meant the average deal size of each rose to $9.5 million from $4.8 million in the first quarter. “Venture investors were willing to write bigger checks for companies they liked,” said Billy O’Grady, head of City National’s Southern California Technology Group.

One of the biggest L.A. venture deals last quarter was a $40 million, second-round infusion for TeleSign Corp., a Marina del Rey-based provider of identity authentication for websites. The company expects $100 million in sales this year.

Another big second-quarter deal pumped $25 million in Series C funding into Tastemade, a two-year-old Santa Monica firm with a YouTube network of food programming. Tastemade users create and share their own food videos online. Venture investors led by Scripps Networks Interactive – which owns Food Network – provided the latest round of capital.

A third round of funding also went to Santa Monica-based WhisperText, which picked up $36 million last quarter from a group of VC firms including Chinese Internet giant Tencent. The popular Whisper app, launched in 2011, allows users to anonymously share secrets and gossip.

Among newer firms, one-year-old Washio got $10.5 million in initial (Series A) venture funding. The Santa Monica startup wants to disrupt the traditional laundry and dry cleaning industry by offering next-day service with pickup and delivery. Now in L.A., San Francisco and Washington, D.C., Washio is planning moves into other major cities.

While Silicon Beach startups like Washio will continue to attract funding, O’Grady said the next surprise may be a flurry of funding for fashion-related firms in L.A.’s burgeoning downtown.

EQUITY FINANCINGS FOR LOS ANGELES COUNTY VENTURE-BACKED COMPANIES

  2 Q 2014 1 Q 2014 4 Q 2013 3 Q 2013 2 Q 2013
Number of Financing Deals 35 36 32 25 40
Amount Invested ($M) $332.6 $174.5 $270.5 $214.6 $288.3
 

TOP 10 DEALS IN LOS ANGELES COUNTY

COMPANY NAME DESCRIPTION CITY ROUND TYPE RAISED ($MM) INVESTORS
Swagbucks Reward platform provider El Segundo Growth Equity $60 Technology Crossover Ventures
TeleSign Mobile identity verification Marina del Rey Series B $40 Adams Street Partners, Summit Partners, March Capital Partners
WhisperText Developer of Whisper, a social community to share secrets Santa Monica Series C $36 Lightspeed Venture Partners, Sequoia Capital, Shasta Ventures, Tencent, Thrive Capital
Tastemade Digital media company centered around food Santa Monica Series C $25 Redpoint Ventures, Liberty Media, Comcast Ventures, Scripps Networks, Raine Ventures
ImaginAb Therapeutic management technology Inglewood Series B $21 Novartis Venture Funds, Cycad Group, Merieux Developpement, Nextech Invest
Metacloud Fully managed OpenStack-based private cloud solution provider Pasadena Series B $15 Storm Ventures, Silicon Valley Bank, Canaan Partners, UMC Capital, Pelion Venture Partners, AME Cloud Ventures
Tradesy P2P fashion marketplaces Santa Monica Series B $13 Kleiner Perkins Caufield & Byers, Northgate Capital, Rincon Venture Partners, Riverwood Capital, Richard Branson
Washio Mobile app for laundry pickup, cleaning, and delivery service Santa Monica Series A $10.5 Canaan Partners, A-Grade, Troy Carter, AME Cloud Ventures, Sherpa Ventures, Pejman Mar Ventures
MiTu Multi-channel YouTube network for Latino content Culver City Series A $10 Upfront Ventures
UberMedia Cross-screen mobile advertising platform Pasadena Series D $8 Blue Chip Venture Company, Gordon Crawford
 

 

*Equity financings include cash investments by professional venture capital firms, corporations, other private equity firms, and individuals into companies that have received at least one round of venture funding.

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