Q1 2017 LA Seed Deal Report
We’re happy to introduce our latest LA Seed Report encompassing all the seed deals done in LA companies in Q1.
Last quarter we shared our 2016 LA Seed Deal Report, which exclusively looked at seed stage funding in LA companies last year. The report received a wealth of interest from investors and entrepreneurs in the LA ecosystem and far beyond. In an effort to continue and expand our reporting on seed-specific activity, we have decided to move to quarterly reporting. Make sure to take a look at the full report below, and be sure to give it a share!
Here were some notable trends in Q1 2017:
Total funding at the seed stage fell 42.2% from Q4'16 and 43.8% YoY. The total number of seed deals fell from 32 to 27 QoQ, while average seed deal size declined from $2.8mm to $1.9mm. This downturn in seed activity isn’t unique to LA, and seems to be part of a larger trend nationally. The recent MoneyTree Report from CB Insights and PwC highlights an 8-quarter low in early-stage deal share across the United States and a 25% decline in seed activity in Q1’17.
This decline in seed stage funding stands in stark contrast to larger trends in the VC funding landscape. On a macro level, total VC funding was up 15% QoQ nationally, but this was largely driven by a rise in mega-deal activity. Seed stage funding often sets the foundation for later-stage venture activity, so it will be interesting to watch how this trend plays out at the Series A and B stages in the months and years to come.
In LA, Health & Wellness was again the most-funded category, but now tied with Consumer Products & Services for combined funding of $24mm across 14 deals, including a number of companies targeting emotional wellness and innovative robotics solutions. On a sector basis, Mobile and SaaS solutions brought in the most funding.
(Our report covers seed deals defined as $500k-$4.99mm that have been publicly announced in the quarter. Please reach out to connor@amplify.la with any questions or comments.)
Want these updates delivered to your inbox!? Join our newsletter!
