Los Angeles is a hotbed for angel investors and venture capital firms, with many opportunities for startups to secure funding. Some of the most prominent angel investors in LA include Ron Burkle, a billionaire investor who has backed companies like Uber and Airbnb.
The city is also home to many venture capital firms, such as Upfront Ventures and Science Inc., which have invested in companies like Dollar Shave Club and Dollar Tea Club. These firms have a strong track record of supporting innovative startups in the LA area.
Many of these investors and firms have a focus on supporting startups in the tech industry, including software, e-commerce, and fintech. They often look for companies with a strong team, a solid business plan, and a unique value proposition.
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Los Angeles Angel Investors
In Los Angeles, you can find angel investors by networking, attending events, using social media, and online databases.
High net worth individuals, like doctors and dentists, can also be angel investors.
Elizabeth Yin of Hustle Fund believes in small checks and pitches everyone around her.
You can use the Angel Investment Network to connect with investors based in LA and Orange County.
Signing up to their network gives you access to business angels and investors around the globe.
Private equity investors can offer hands-on mentoring and financial help.
Los Angeles businesses can find a range of investors through the Angel Investment Network.
Businesses based in California, like San Diego and Santa Monica, can also use the network.
Finding and Connecting with Angel Investors
Finding and connecting with angel investors in Los Angeles can be a straightforward process. You can start by using online databases like Visible, which offers a free investor database and fundraising CRM.
Angel investors can be found in unexpected places, such as among high net worth individuals in your social circle. Elizabeth Yin of Hustle Fund pitches everyone around her, including doctors and dentists.
To find traditional angel investors, try networking, attending events, and using social media. You can also use online resources like the Angel Investment Network, which connects businesses with investors around the globe.
Here are some tools to help you manage your connections with angel investors:
- Visible Connect: a free investor database
- folk: a CRM to track conversations with investors
These tools can help you streamline your fundraising process and connect with the right investors for your business.
Invent Ventures
INVENT Ventures is a publicly-traded technology venture firm located in Santa Monica, CA that trades as “IDEA” on the OTC market.
They're a unique company that offers unparalleled access to the fastest growing industries, which is a major perk for entrepreneurs looking to connect with investors.
INVENT Ventures is the only public company in the U.S. focused exclusively on building tech startups, making them a standout in the industry.
This structure provides stakeholders with access to early stage venture capital through a curated and actively managed portfolio of technology businesses.
Their mission is to "Work Your Passion. Live Your Purpose", which suggests a commitment to supporting entrepreneurs in pursuing their passions.
INVENT Ventures offers a new type of investment opportunity that's worth exploring for those looking to connect with angel investors.
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Finding Angel Investors
Finding angel investors in Los Angeles can be a challenging task, but it doesn't have to be. Elizabeth Yin of Hustle Fund believes that angel investors can be anyone around you, including high net worth individuals like doctors, optometrists, and dentists.
You can use networking, events, social media, and online databases to find traditional angel investors. Visible is a great resource for finding investors, with their free investor database and fundraising CRM.
There are also online platforms like the Angel Investment Network that can connect you with investors based in LA and around the world. When you sign-up to their network, you'll have access to business angels and investors who can offer both hands-on mentoring and financial help.
To keep track of conversations with local angel investors, you can use folk as a CRM. It's easy to use and straightforward to set up, and it can help you manage all your prospects in a pipeline with pre-set stages.
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Here are some key features to look for in a platform for finding angel investors:
By using these resources and platforms, you can increase your chances of finding the right angel investors for your business in Los Angeles.
Notable Angel Investors in Los Angeles
In Los Angeles, you can find angel investors in various ways. One way is to use online databases to find the right investors for your company.
Elizabeth Yin, of Hustle Fund, is a huge believer in small checks and pitched everyone around her, including doctors, optometrists, and dentists. She's a great example of how angel investors can be anyone around you.
If you're looking for "traditional" angel investors, you can use networking, events, social media, and online databases. Canyon Creek Capital believes in leveraging their extensive network of investors and contacts to provide value to entrepreneurs.
Clark Landry is an entrepreneur and investor based in Los Angeles and Nashville, with over 120 investments to date. He focuses on software businesses and invests in seed stage startups.
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Mucker Capital
Mucker Capital is a notable angel investor in Los Angeles, focused on investing in seed- and pre-stage companies in the internet software, services, and media sectors.
Mucker Capital has a specific investment strategy, targeting companies in these sectors, and has likely provided valuable guidance and resources to its portfolio companies.
Karlin Ventures
Karlin Ventures is an early-stage venture capital fund based in Los Angeles. They are value-add partners helping entrepreneurs take contrarian approaches to create impactful solutions to big, interesting problems.
Their investment criteria are focused on education technology, digital media, healthcare, financial services, and consumer goods, but they're open to exciting ideas in other verticals. They seek investments from $100,000 to $1,500,000 and typically don't take lead investor roles.
Karlin Ventures invests in U.S.-based companies, preferably on the West Coast. They look for business models with proof-of-concept in place, post-revenue or with secured contracts, that are requiring less than $5,000,000 and three years to reach break-even point.
A-Grade Investments
A-Grade Investments is a venture capital fund founded by long-time friends Ashton Kutcher, Guy Oseary, and Ron Burkle. They're a team to watch in the LA investment scene.
A-Grade Investments is not mentioned in the article sections as being involved in the Angel Investment Network or any other specific investment opportunities in Los Angeles or California. However, Ashton Kutcher, a co-founder of A-Grade Investments, has turned to angel investing and has started Sound Ventures.
If you're an entrepreneur in LA or California, you might want to consider reaching out to the UCLA Venture Capital Fund for support and mentorship. They make early stage investments in promising UCLA-related companies.
Ashton Kutcher's investment criteria include the technology industry and funding stages of seed and series A.
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Summation Health Ventures
Summation Health Ventures is a notable angel investor in Los Angeles, focusing on start-up companies with proven management teams and revenue growth potential.
They specifically target companies in the information technology, technology-enabled device, and services sectors.
These companies must have offerings that improve performance and achieve success in today's health systems and physician organizations.
Summation Health Ventures looks for early- to mid-stage companies, indicating that they are willing to take on more risk in exchange for potentially higher returns.
Their investment strategy suggests a focus on companies that are already showing promise and are poised for further growth.
Upfront Ventures
Upfront Ventures is a leading venture capital firm that's been around for 17 years, having previously operated under the name GRP Partners. They've changed their name to reflect their willingness to innovate and adopt new ideas.
One of their key values is transparency, which is reflected in their decision to announce their newest $200 million fund, their 4th fund. This move shows their commitment to being open and honest with the entrepreneurs and investors they work with.
Upfront Ventures focuses on making Seed or A round investments, which means they're looking for early-stage companies with a lot of potential. They're not afraid to take a contrarian approach and invest in companies that others might overlook.
Their investment criteria are pretty specific, looking for companies in education technology, digital media, healthcare, financial services, and consumer goods. They also consider investments in other verticals if they're particularly exciting.
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Clark Landry
Clark Landry is an entrepreneur and investor based in Los Angeles and Nashville. He has a strong background in entrepreneurship, having founded his own startups.
Clark has made over 120+ investments in startups to date. This experience has given him a unique perspective on what makes a successful startup.
His focus is on software businesses, which is a rapidly growing industry. This specialization allows him to stay up-to-date on the latest trends and innovations.
Here are some key facts about Clark's investment approach:
- Industry: Agnostic with a focus on software businesses
- Funding stage: Seed stage
Frequently Asked Questions
How much do you pay an angel investor?
Angel investors typically invest between 10% to 40% of your business in exchange for equity, depending on your growth potential and willingness to share ownership. The exact amount can vary, but it's usually a significant portion of your business.
What percentage do angel investors want?
Angel investors typically seek 10% to 50% equity in exchange for funding, which can impact business owners' control over their company.
Are angel investors a good idea?
Angel investors can be a good option for startups, offering less risk and flexibility compared to traditional loans, but it's essential to understand the equity trade-off involved. Consider seeking angel investment if you're willing to give up some ownership in exchange for funding.
Sources
- https://www.builtinla.com/companies/type/angel-vcfirm-companies
- https://visible.vc/blog/angel-investors-los-angeles/
- https://www.angelinvestmentnetwork.us/angel-investors-los-angeles
- https://www.folk.app/articles/the-top-angel-investors-in-los-angeles
- https://www.folk.app/angel-investors/angel-investors-in-los-angeles
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