With venture funding harder to come by for startups across the country, Greycroft recently raised $1 billion in what's sure to be a welcome sign to startups in need of funding.
Greycroft, which focuses on financing startups from seed to growth stages, typically invests in industries like consumer internet, enterprise software, financial services and health care.
The firm’s two flagship funds, Greycroft Partners VII and Greycroft Growth IV, collectively raised more than $980 million. It's an increase from the firm’s previous venture and growth funds, which raised around $700 million.
“We attribute our success to our unique investment strategy that extends beyond the typical Silicon Valley opportunities,” Greycroft co-founder and managing partner of the L.A. office, Dana Settle, told L.A. Inno.
This new capital enables Greycroft to "act now and invest in category-defining companies across sectors," Settle said.
Greycroft Partners VII plans to focus on early-stage investments, while Greycroft Growth IV plans to target established companies that are growing and expanding their operations.
L.A. presence
Greycroft was co-founded in Los Angeles and New York City in 2006. Along with being America's two largest cities, the locales were also selected based on their concentration of tech investment and entrepreneurial talent, along with the added benefit of being cultural and commercial industry hubs.
Since inception, the firm has grown from $75 million to $3 billion in capital commitments, and has invested in more than 250 startups, including Irvine-based Acorns, a fintech platform; Culver-City based Scopely, a mobile-first video game company; and Bumble, the Austin-based dating app startup.
The VC firm typically makes investments from $500,000 up to $50 million.
Greycroft relocated its L.A. office to a new space in the downtown Arts District earlier this year.
“We have built strong networks in the NYC and L.A. ecosystems that are complementary to Silicon Valley,” Settle said. “Our foundation in Los Angeles and New York has given us unique access and insights to the technological advancements that drive emerging themes and reshape industries at the intersection of culture and business. We identify companies in any location that are applying next-generation technology in a novel way and invest at the critical moment of commercialization.”
L.A. startup scene
Settle characterized the current state of the L.A. startup scene as “vibrant,” adding that it has “a diverse set of industries represented, and a strong focus on innovation in media and entertainment, as well as e-commerce, digital health and other sectors.”
Regarding the startup climate in general, Settle told L.A. Inno that Greycroft is seeing founders who are “being more thoughtful and intentional about everything, from hiring decisions to operations, which is a positive.”
