Technology investment is alive and thriving in Orange County, says commercial real estate services firm JLL.
There have been five consecutive quarters of Orange County tech funding surpassing $100 million, according to a new report from the brokerage firm.
Funding was $158.7 million in the second quarter, with $345.6 million total for the first half of the year.
Software companies raised the most capital last quarter, while fintech, gaming, and cybersecurity have also been busy attracting investments of late.
JLL Senior Vice President Scott Wetzel said he sees continued tech growth in Orange County, speaking in an interview with the Business Journal this month.
Wetzel said the funding trend will “absolutely’’ continue, with money from a mix of investment from outside OC and from within.
“I think that Orange County is a reflection of how technology is impacting business today,” Wetzel said. “You have financial services, you have real estate, [and] you even have companies like law firms who have a more technological edge to them.
SAAS, Project Management
Active investors in Orange County in the second quarter include San Francisco-based Iconiq Capital, which invested Irvine restaurant management software company Restaurant365’s $88 million Series C in June, and Newport Beach’s Carrick Capital Partners, which invested in Irvine-based project management firm Mavenlink, according to the JLL report.
The report also cited supply chain software company Specright Inc.’s April announcement of an $8.8 million Series A round of funding.
Silicon Valley Monitored
A real spurt in tech growth may depend on developments in Silicon Valley.
“If we were to see growth, it’ll take a major Silicon Valley-based company deciding that they’ve also plateaued in their market and that they think that there’s an opportunity to come down to Orange County and attract people who are maybe frustrated with costs there,” Wetzel said.
“Or maybe they’re aging millennials and they’re looking for more affordable housing. It would take something like that to spark tech growth.’’
Still, challenges remain. Chapman University economists said last month that there was “virtually no growth” in information-related jobs in OC compared with 8% expansion in Silicon Valley.
