Blockchain-Enabled Technologies Gain Traction — Q2 2018 LA Seed Deal Report
We’re excited to share the most recent update of our LA Seed Report, encompassing all seed funding to LA companies in Q2 2018.
Q2 saw Seed activity rise slightly, with 26 LA companies raising a combined $59.6mm in funding. These numbers are in line with what we’ve seen over the past year. Average round size rose slightly to $2.4mm, again cementing LA Seed deals well above the national average. Meanwhile, the broader LA tech ecosystem had another record-breaking quarter, with a slew of mega-rounds adding to the $1.8bn raised across 98 deals (up 71% YoY).
A trend we’ve continued to watch has become more pronounced, with no publicly announced deals in the $500k — $1mm range. This is part of a broader story on increasing round sizes and changing nomenclature, with Pre-Seed rounds (that often go unannounced) filling out the <$1mm bracket and Seed rounds concentrating in the $1.5mm+ range.
Below are a few highlights from Q2:
Decentralized technologies gain fundraising traction. Last quarter, one blockchain-enabled startup announced Seed funding in LA, while Q2 saw 6 companies that leverage decentralized infrastructure raise funds. We note that a large number are concentrated in the Media, Entertainment & Gaming category, historically one of the earliest industries to adopt new such technologies.
Marketplace was the most funded sector. Q2 saw 6 Marketplace businesses raise a combined $16.9mm in funding. The startups cover a broad range of categories- from advertising to warehousing- and reflect the continued strength of the sector in LA.
Media, Entertainment & Gaming continues its dominance. Once again the most funded category, Media, Entertainment & Gaming deals took in $24.8mm across 9 deals. Startups that raised in this category cover areas such as eSports learning and engagement, sports media/collectibles, and tools for creatives.
For Q1’s seed activity, click here.
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(Our report covers seed deals defined as $500k-$5mm that have been publicly announced in the quarter. Please reach out to connor@amplify.la with any questions or comments.)
