A new report from the Pepperdine Private Capital Markets Project suggests that Los Angeles is primed for growth from venture capital investment, particularly in the Cleantech sector, and may even surpass Silicon Valley in that respect.
Researchers interviewed more than 150 venture capital professionals in early 2010 to gather data for the Pepperdine Private Capital Markets Project, according to a story from Reuters. Nearly 1 out of 4 VCs indicated that they plan to invest in Cleantech, particularly energy generation, followed by 17 percent investing in energy infrastructure and 13 percent in energy storage.
Southern California was a popular choice for that investment, according to the same survey. In fact, more than double the number of venture capitalists said they planned to invest in Southern California firms versus Northern California’s Silicon Valley.
Venture capital investment is on the upswing throughout the state, though. According to data from Dow Jones VentureSource, venture capital investment reached $4 billion during the second quarter, a 51 percent gain from the same period last year and the highest level since the third quarter of 2008.
The Reuters article also cited data showing that Los Angeles County has the most Cleantech companies in the state. Factors such as a strong, skilled workforce, robust university presence, access to ports and strong industry groups all indicate that Los Angeles is primed for venture capital growth.
What’s your take? Will the uptick in Cleantech investment spur even more venture capital growth in Southern California? Will it affect your career plans? Add your comments below.
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