Announcing SoCal Venture Pipeline powered by Silicon Valley Bank

by Eric Eide

Despite 2020 being one of the best funding years for SoCal startups in total dollars raised — we eked by New York to take #2 spot in the US — there is still a serious logjam when it comes to Series A rounds. In fact, this past year, despite additional new funds and little downward pressure on valuations overall, the region actually saw fewer startups raising early growth rounds; much of the funding bump was due to larger checks to later stage startups. That’s why we’re extremely excited to announce that the Alliance has partnered with Silicon Valley Bank to launch a new program called SoCal Venture Pipeline to help connect local startups ready for a Series-A round with growth stage venture funds from outside and inside SoCal.

The objective of the program is to help founders lacking the relationships and professional networks to access high quality venture capitalists who can provide the right kind of capital and expertise to help them grow their company. Without access to growth stage capital, early stage founders often get stuck — not enough capital to grow their companies to their full potential so they are forced to take alternative sub-optimal paths that reduce their ability to bring their breakthroughs to the market and create massively successful companies. This systemic gap creates a downward drag on the entire region. Our hope is that by providing greater access to these vital networks, we’ll see more startups get Series-A funding. It logically follows that more successful companies will create more economic vibrancy for their communities and the region e.g. more high-paying jobs, talent attraction/retention to the region, etc. Now more than ever, we need to help local companies so they stay and grow right here in SoCal.

Continue reading on the Alliance website.

Eric Eide is Director of Ecosystem Development at the Alliance for SoCal Innovation. You can also find him on LinkedIn and the Alliance website.