Super angel investor Chris Sacca spends half of his time in LA, and now his firm, Lowercase Capital, has a dedicated fund for the city.
He’s bullish on LA tech, in part, because other VCs are ignoring it, he said at PandoMonthly LA tonight. Sacca is focused on the intersections of media and technology, which LA startups embrace thanks to the rich array of media companies based there. At the same time, too many Silicon Valley venture capitalists have been burned on media deals.
“We’ve got this entire generation of digitally native content. VCs had their asses kicked because they backed media companies with no viewers,” he said. Those companies with no audiences couldn’t attract advertisers, and so they failed.
Early new media investing was also all about piracy. Now, savvy startups have learned that the content companies in LA make better partners than they do investors themselves.
Sacca declined to specify the size of his LA-focused fund, but he did share that he’s hired a full time director for his LA fund who will start in a matter of weeks. The only publicly disclosed LA media investments that Sacca has made to date are in YouTube influencer platform Big Frame, and premium video discovery portal Chill.