Think Global and Invest Local
The partners at LDR Ventures believe that with 60% of venture capital being concentrated within a few square miles around San Francisco and Boston, funding entrepreneurs and early innovation outside of Silicon Valley and in their backyard of Los Angeles may be the best opportunity for early stage investing ever.
Over a quarter of the investment capital raised was used for super funds: venture capital funds hovering around a billion dollars. Super funds write big checks, which means that they don’t have the bandwidth to look at early stage opportunities or many themes beyond a narrow focus. The result for investors and entrepreneurs is a concentration of capital and limitation of innovation versus a wider distribution of both financial and knowledge capital to a larger and more diverse audience of opportunities. And while there is an increasingly diverse group of businesses and founders who are uniquely qualified to solve big problems, there is a tremendous limitation, bordering on a polarization of who gets funded.
Angel investment deal volume dropped 25% last year. We believe that now is the right time for our collaborative approach which combines LDR’s intrapreneurship with the founder’s entrepreneurship . Combining forces with LDR provides a meaningful opportunity for us as investors to invest in start-ups that are pushing the pace of innovation and share the optimism behind finding out”what’s next” and turning them into the new normal.
We focus on our backyard of Los Angeles and businesses where we can create maximum value by applying our hands-on approach to investing and advising the entrepreneurs. We’re experienced executives who invest, and look for early stage founders and entrepreneurs who focus not only on big, game changing ideas and disruption but on operations and putting a premium on cash flow. We do not believe in a “go big” or “go home,” approach.
The successful startup’s leadership from our point of view follows a “sure and steady” approach with a strategy to validate market interest and then builds on it.
What LDR’s Approach Mean’s For Venture Capital and Start-Ups
The venture capital industry, started in 1958, is very young. We’re at a time when investors and start-ups are looking to create value by adding value. By creating more opportunities for venture and knowledge capital and diverse groups of entrepreneurs and their ideas, LDR believes it will lead to more opportunity for all and further democratize access to venture capital and successful outcomes.
We invest at the Pre-Seed, Seed and Series A rounds. The industries we focus on include:
- Consumer Goods And Services
- Home Decor
- Healthy Foods
- Health & Wellness
- Digital & Social Media (Tech Enabled Content Businesses, Video, Text, Chat)
- Commerce Technology And Marketplaces SAAS
For more information on LDR Ventures, please visit us at www.ldrventures.com