Despite Slowing, L.A. Climbs Up Venture Ranks.Venture capitalists Venture Capitalist An investor who provides capital to either start-up ventures or support small companies who wish to expand but do not have access to public funding. Notes: Venture capitalists usually expect higher returns for the additional risks taken. invested $187.8 million in Los Angeles-area companies during the third quarter ended Sept. 30, a 21.4 percent decline from the previous quarter, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Growthink Inc., a Los Angeles-based research firm. The drop, while substantial, was not as severe as that suffered in other major U.S. markets. As a result, Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. moved up to the No. 8 spot on the list of top venture investment markets. In the prior quarter, L.A. had been No. 10. "L.A. moving up the chart is nothing we should be patting each other on the backs about because we're we're Contraction of we are. we're we are well off the pace we were at a year ago and even a quarter ago," said Corey Cor·ey , Elias James Born 1928. American chemist. He won a 1990 Nobel Prize for developing techniques of creating synthetic compounds. Lavinsky, Growthink's director of market research. "But relatively speaking, other areas fell off worse than Los Angeles." Specifically, Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. and Denver Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. -- ranked No. 6 and No. 8, respectively, in the second quarter -- both dropped out of the top 10. Besides Los Angeles, two other U.S. metro areas This article is about the music production team. For the article about population centers, see metropolitan area. Metro Area are a Brooklyn-based dance music production team composed of Morgan Geist and Darshan Jesrani. moved in the third quarter -- Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. jumped from No. 9 in the second quarter to No. 4, and Austin Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum inched up from No. 7 to take the No. 6 post. The Bay Area remains firmly atop the heap, receiving $2.2 billion during the third quarter, down from $3.1 billion in the second quarter but still more than 10 times L.A.'s amount. Receiving the biggest portion of venture capital in Los Angeles during the third quarter was Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the Machines, an Agoura Hills semiconductor chip seller. It received a $41 million round, of which $40 million came from Exar Corp. and $1 million came from Banc of America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. Securities. "This is by far the biggest direct equity investment that Exar has made in its 30-year history," said Susan SUSAN Smallest Univalue Segment Assimilating Nucleus SUSAN Sub Saharan African Network SUSAN Smart Ultrasonic System for Aircraft NDE Hardman HARDMAN Hardware/Manpower Integration , an Exar vice president. "We're positive they'll they'll Contraction of they will. they'll will be successful and that we'll we'll Contraction of we will. we'll we will or we shall we'll will ~shall benefit from their success. Exar, a Nasdaq-listed company based in Fremont Fremont (frē`mŏnt). 1 City (1990 pop. 173,339), Alameda co., W Calif., on San Francisco Bay; inc. 1956. Long an agricultural center, with champagne vineyards founded (1870) by Leland Stanford, it still ships fruits and vegetables. , Calif., looked at 30 different companies over a nine-month period before deciding to buy a 16 percent equity stake in Internet Machines for $40 million, Hardman said. Exar plans to eventually purchase Internet Machines outright, but the Agoura Hills firm is currently burning so much cash that an acquisition would have sent Exar into the red. "As long as we keep our investment under 20 percent, we don't have to account for any of their losses on our income statement," Hardman explained. Networking frenzy Frenzy Beatlemania term referring to the Beatles’ (rock musicians) immense popularity; manifested by screaming fans in the 1960s. [Pop. Culture: Miller, 172–181] Big Bull Market As for industry sectors, the hot niche during the quarter was "optical networking Communications between computers, telephones and other electronic devices using light. An optical network is far more reliable and has far greater potential transmission capacity than networking in the electrical domain. See optical fiber. " -- essentially technologies that digitally connect computers. Among the L.A. third-quarter recipients in the optical networking space are LightCross of Monterey Park Monterey Park, city (1990 pop. 60,738), Los Angeles co., S Calif., a growing residential suburb of Los Angeles; inc. 1916. It is a wholesale, retail, and financial services center. , Sabeus Photonics of Long Beach and Zona zona /zo·na/ (zo´nah) pl. zo´nae [L.] 1. zone. 2. herpes zoster. zona arcua´ta inner tunnel. zona cilia´ris ciliary zone. of Tarzana. Meanwhile, the once-sizzling e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. sector remains ice cold, as does most any online content play. The closest thing to that space that got funded in the third quarter was Urban Entertainment, which uses the Internet as an incubator incubator, apparatus for the maintenance of controlled conditions in which eggs can be hatched artificially. Incubator houses with double walls of mud, a fireroom, and several compartments each holding about 6,000 hens' eggs were developed in ancient times; the to develop movie and TV projects. At least one L.A. recipient is well positioned to benefit from widening fears following the Sept. 11 terrorist attacks. Storactive, a Marina Marina “a piece of virtue.” [Br. Lit.: Pericles] See : Virtuousness del Rey Del Rey may refer to:
"I don't want to thump my own chest, but cream rises to the top and the cream in this case is technology," said Tony Bautista, Storactive's chief executive. Bautista plans to hire many of his former colleagues from the Network and Systems Management Group of Seagate Technology (company) Seagate Technology - A major manufacturer of hard disk drives, founded in 1979 as "Shugart Technology" by Alan F. Shugart and Finis Conner. That name is on the original patents for the 5.25" hard disk drive. .
Third-Quarter L.A. Venture Capital Recipients
Here are the 21 L.A.-based companies that together received $187.8
million in the quarter ended Sept.30.
Amt. Invested
Recipient, City (millions)
Internet Machines, Agoura $41
Hills
Light Cross, Monterey Park $30
Asynchronous Digital Design, $15
Pasadena
Storactive, Marina del Rey $11.7
eNow Inc., Los Angeles $9.45
SatisFusion, Long Beach $7.5
NxN Software, Santa Monica $6.95
Urban Entertainment, Los $5.5
Angeles
Build-To-Order, Santa Monica $5
UNX, Burbank $4.4
CNP Technologies, Los Angeles $2
CaseStack Inc., Los Angeles $1.5
Xelleration, Beverly Hills $1
BlinkingCrusor, Pasadena $0.7
Motia, Pasadena $0.5
Anthropics Inc., Marina del N/A
Rey
Berkley Industries, La Mirada N/A
Lead411, Redondo Beach N/A
Quintessence Photonics Corp., N/A
Torrance
Sabeus Photonics, Long Beach N/A
Zonu Inc., Tarzana N/A
Recipient, City Description
Internet Machines, Agoura Semiconductor company that
Hills offers the Impower family
of highly integrated
communications chips.
Light Cross, Monterey Park Optical networking components
company.
Asynchronous Digital Design, Maker of high-performance
Pasadena processors for semiconductor
industry.
Storactive, Marina del Rey Developer of technologies
that continuously replicate,
manage and, when disaster
strikes, quickly recover
critical information.
eNow Inc., Los Angeles Technology-media company
that enables real-time
content to flow automatically
to those who need it
immediately.
SatisFusion, Long Beach Developer of after-sales
support and retention
infrastructure platforms.
NxN Software, Santa Monica Supplier of digital
production management
solutions for the interactive
entertainment and new-media
industries.
Urban Entertainment, Los Production company that uses
Angeles the Internet as an incubator
for developing urban-themed
film and TV projects.
Build-To-Order, Santa Monica Offers delivery of build-to-
order vehicles directly to
consumers through the use of
computer-aided industrial
design.
UNX, Burbank Operator of advanced online
stock trading platform.
CNP Technologies, Los Angeles Advanced technology firm
providing publishing, content
management and e-commerce
solutions.
CaseStack Inc., Los Angeles Operator of proprietary
system that enables mid-size
manufacturers to enjoy all
the benefits of a
sophisticated global
logistics system.
Xelleration, Beverly Hills Provider of technology
consulting service.
BlinkingCrusor, Pasadena Developer of software that
allows users to create a
desktop presence on their
targeted customers' devices.
Motia, Pasadena Developer of systems that
improve performance of
wireless services.
Anthropics Inc., Marina del Developer of new digital
Rey media technology.
Berkley Industries, La Mirada Producer of custom packaging
for medical and consumer
products.
Lead411, Redondo Beach Research firm that uncovers
leads for and delivers the
leads online.
Quintessence Photonics Corp., Developer of fiber-optic
Torrance components that increase
network bandwidth.
Sabeus Photonics, Long Beach Designer, manufacturer
of optical components.
Zonu Inc., Tarzana Producer of optic-electric
converters that serve as a
conduit for data, video,
telephony, Internet access
and utilities monitoring.
Recipient, City Investors
Internet Machines, Agoura Exar Corp.
Hills Banc of America Securities
Light Cross, Monterey Park UMC Capital, ComVentures,
ARCH Venture Partners, JP
Morgan Partners
Asynchronous Digital Design, Infinity Capital, New
Pasadena Enterprise Associates,
WorldView Technology Partners
Storactive, Marina del Rey Moore Capital Management,
Mellon Ventures
eNow Inc., Los Angeles Broadband Venure Partners,
Cap Ventures, others
SatisFusion, Long Beach Opportunity Capital Partners,
NIF Ventures, Milepost
Ventures
NxN Software, Santa Monica Target Partners, 3i,
Technonord, Technostart
Urban Entertainment, Los AOL Time Warner Ventures,
Angeles Provender Capital Group
Build-To-Order, Santa Monica AK Steel, Gaffoglio Family
Metalcrafters, others
UNX, Burbank Putnam Lovell Capital
Partners
CNP Technologies, Los Angeles Psilos, Constellation
Ventures, Noro-Moseley
Partners
CaseStack Inc., Los Angeles Blumberg Capital,
CNF Ventures, TSX Ventures
Xelleration, Beverly Hills undisclosed investors
BlinkingCrusor, Pasadena individual investors
Motia, Pasadena Carrot Capital
Anthropics Inc., Marina del Quester, SkyVentures, Skandia
Rey Media
Berkley Industries, La Mirada Mellon Ventures
Lead411, Redondo Beach individual investors
Quintessence Photonics Corp., DynaFund Ventures
Torrance
Sabeus Photonics, Long Beach N/A
Zonu Inc., Tarzana Windward Ventures
Source: Growthink Inc.
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