The most active venture capital firms with local headquarters or significant operations and ranked by amount invested in OC companies combined for about $56 million in 39 portfolio deals last year. That’s about 35% less money than the top VCs invested in 2014 in about the same number of completed local deals.
Eight firms make up this year’s list. Half were up in dollar amount invested locally. Two were down, and two firms’ totals were Business Journal estimates.
Regular Business Journal readers will notice that San Francisco-based Versant Venture Management LLC and Ventana Capital Management LLC in Rancho Santa Margarita are missing from this year’s list. That’s a total loss of one VC investor in the county, taking into account the addition of Newport Beach-based Toba Capital.
Versant invests in healthcare companies and was last year’s No. 1 VC investor, with $63 million invested in 13 Orange County companies. The firm decided to close its Newport Beach office, though co-founder and Managing Director William Link remains active here, including duties as chairman of Alphaeon Corp., a maker of skincare products in Irvine.
Ventana Capital, which invests in convergence technologies and manages $100 million companywide, suspended operations here after founder and managing partner Thomas Gephart died on March 17. A spokesperson for Ventana’s Washington, D.C., office said the firm is reviewing options for the Orange County location.
New at the Top
• Toba Capital debuts on the list as the No. 1 venture capital investor in OC, with $23 million invested in local companies. That’s a 53% dollar increase from a year earlier. It participated in six deals, up from two deals in 2014.
Its OC investments include virtual reality content maker NextVR Inc. in Laguna Beach and security content maker SecureAuth Corp. and data analytics software company Alteryx Inc., both in Irvine.
Former Chief Executive Vinny Smith created Toba in 2012 after selling Quest Software in Aliso Viejo to computer maker Dell in Round Rock, Texas, for $2.8 billion. Smith received about $800 million in the sale.
Toba makes seed- and late-round investments in software companies. It manages $475 million companywide, up 58% from 2014.
• Lotus Innovations LLC in Irvine climbed one spot to No. 2, with $15 million invested in OC companies, up 114%. The firm invested in five transactions last year, up from three deals in 2014.
Managing Director Christian Mack founded the firm in 2013 when it launched its inaugural fund of $10 million. The fund is closed to new investors and is no longer acquiring portfolio companies.
Lotus now manages $40 million over two funds.
The $30 million Fund II is devoted to acquiring and developing undervalued enterprise technology companies.
Lotus prefers to invest in early-stage communications software companies and provides back-office services, such as marketing, legal, IT systems, and office administrators, to its portfolio companies. The services are designed to allow entrepreneurs to focus on perfecting technologies and products instead of developing policies for a burgeoning company, Mack said (see related story, page 20).
• Laguna Beach-based Okapi Venture Capital moved up two spots to No. 3 with $12.5 million invested in 11 OC deals. The firm invested 323% more money this year and participated in 11 deals, up from seven a year earlier. Its total funds under management remained unchanged at $47 million.
The firm invests in technology and life sciences companies and employs two: co-founders and Managing Directors Marc Averitt and Sharon Stevenson. It typically invests $500,000 to $2 million in portfolio companies.
• Miramar Venture Partners in Corona del Mar held onto the No. 4 spot, despite an 11% drop in local VC investments to $2.9 million. It signed six deals, the same number as in 2014.
Managing Directors Bruce Hallett and Bobo Holmen continue to manage the firm’s $143 million by investing in digital media and cloud computing companies.
• MedFocus Family of Funds in Irvine moved up two spots to No. 5 with $2.1 million in local investments, up 416%—the biggest percentage increase on the list.
The firm, which makes early-round investments in medical device makers, participated in eight deals in OC, up from four in 2014. It managed $34.4 million companywide, about 53% more than a year earlier.
• Transmeridian Capital Services in Laguna Woods stayed at No. 6, with an estimated $550,000 in local investments, unchanged from 2014 numbers.
The Business Journal estimates that the firm invested in one deal last year and continues to manage $3.5 million companywide.
Transmeridian prefers to make first-round investments in electronic device makers and computer-related products.
Quiet Year for Two
• SAIL Capital Partners LLC in Newport Beach moved down five spots to No. 7. The firm made no OC investments last year but is on the list because it manages $250 million companywide.
SAIL was No. 2 last year based on the $10 million invested in OC in 2014.
The firm invests between $1 million and $50 million in companies in the clean energy, water, energy efficiency, storage and agricultural technology sectors.
• Huntington Ventures in Irvine completes the list at No. 8, the same rank it held last year. It didn’t invest in OC in 2015 but has so far invested in one local company this year.
Huntington Ventures prefers to make second-round investments in wireless, communications and internet companies. The firm invested $100,000 last year.
