Tuesday, July 16, 2013
Core Innovation Capital Sets Up Shop In LA
In the latest positive move for the Los Angeles venture capital market, a new investor has moved into town, to take advantage of the area's growing startup market. According to Core Innovation Capital, it has moved its offices to Los Angeles from New York City, to be closer to potential investments in its focus area of funding companies serving underbanked consumers in America. The firm's efforts here are headed by Arjun Schutte.
Core Innovation Capital told socalTECH that the firm was attracted to the area due to the number of companies in its segment here, including such companies as Green Dot, Wallaby, and others. The fund has not yet announced local investments, but has been actively talking to companies fitting its investment profile. The firm recently made an investment in TIO Networks, a bill payment company based in Vancouver, BC, as part of an acquisition of bill payment services provider Globex Financial Services.
Southern California, as a whole, has historically had a shortage of local venture capital investors versus the startup activity in the region, with a large number of deals being funded by out-of-area investors; however, new funds raised by Upfront Ventures, TenOneTen Ventures, DominateFund, Karlin Ventures, TVC Capital, Avalon Ventures, and Sibling Capital seems to reflect a rising interest in regional investments--or at least, local venture capitalists--in Southern California's startup ecosystem.