L.A. VENTURE CAPITALISTS CHOOSIER IN FIRST QUARTER.
Byline: Evan Pondel Staff Writer
Venture capitalists were more picky pick·y
adj. pick·i·er, pick·i·est Informal
Excessively meticulous; fussy.
[pickier, pickiest] Brit, Austral & NZ when investing in the first quarter, a survey of investors released Monday shows.
In the first quarter, venture-backed companies in 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. raised $234 million vs. $999 million from the same period a year ago, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. Pricewaterhouse Coopers MoneyTree Survey.
``Clearly, as you can see with the numbers, venture capitalists have reacted pretty violently in this quarter,'' said Richard Withey, a managing partner at Pricewaterhouse Coopers. ``With the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. market shut down, venture capitalists have pulled back dramatically.''
A year ago, a novel idea and a bare-bones business plan could clinch a solid deal. But today, the bar is much higher and the allure of a budding technology company raises fewer brows.
Peter Hartz Peter Hartz (born 9 August 1941 in Sankt Ingbert), was the human resources executive at the German public company Volkswagen AG (VW). Twenty percent of Volkswagen's shares are owned by the state of Lower Saxony. , a partner and lab manager at Woodland Hills-based Fortune Lab, screened more than 400 companies in a year before finding one that fit his criteria.
``There's no question that there has been downward pressure and its harder to fund companies,'' Hartz said.
Fortune Lab provides the first round of funding for companies, often referred to as the ``angel round.'' In addition to supplying an injection of capital, Fortune Lab also manages and develops software for companies.
While incubators appeal to many start-ups that haven't established a foundation in a particular niche, some companies just lack potential.
``Many companies don't have enough traction to appeal to an angel round,'' Hartz said. ``They think they're beyond the incubator round.''
But the 101 Corridor - a commercial belt that parallels the Ventura Freeway The Ventura Freeway is a freeway in southern California running from Ventura to Pasadena. It is the principal east-west route through Ventura County and in the southern San Fernando Valley in Los Angeles County. , stretching from Sherman Oaks to Camarillo - remains a hotbed hotbed, low, glass-covered frame structure for starting tender plants. It differs from a cold frame only in that the soil is heated—either artificially as by underground electric wiring or steampipes, or naturally with partially fermented stable manure, which for up-and-coming companies that are involved with communications and networking products.
``For L.A. and the corridor, we're well positioned because there are a number of companies that are focused on infrastructure plays,'' Withey said.
Lynx Photonic Networks, a 2-year-old Calabasas Hills-based manufacturer of optical switches, received around $30 million in the first quarter.
``We had 40 potential suitors looking at the company, and we had to turn some away,'' said Kelly Williams Kelly Williams (born February 2, 1982 in Detroit, Michigan, USA) is a Filipino-American professional basketball player currently playing with the Sta. Lucia Realtors. He plays in the forward position. He is a prolific scorer and also a dunk artist. , director of marketing and communications for Lynx. ``But we were one of the last companies to receive funding.''
Despite a tightening market, Lynx Photonic was able to amass capital from Morgan Stanley To comply with Wikipedia's , the introduction of this article needs a complete rewrite. Dean Witter, Enron North America and Infineon Ventures.
The reason: ``We're producing solid-state stuff: fiber-optic networks,'' Williams said.
The company plans to go public by the second quarter of next year. Until then, Lynx is ``holding a tight ship,'' with 80 employees in Israel and 20 in the United States.
As companies such as Lynx continue to extract capital from a seemingly dry market, there are still wells to tap.