Facebook's acquisition of Oculus is the largest LA area tech IPO or M&A exit since 2009. And Maker Studios' $950M exit also ranks the top 3. With VCs deploying over $3.5B into the LA tech ecosystem in the last 5 years, are more SoCal VC wins on the way?

Disney’s acquisition of Maker Studios represents a significant win for the Los Angeles tech ecosystem. And Facebook’s acquisition of Oculus VR is even bigger. In fact, based on CB Insights data, Oculus was the largest venture-backed IPO or M&A to take place in the LA or Orange County area in the last five years.

Facebook’s $2B acquisition of Oculus comes just three months after the virtual reality company raised a $75M Series B round led by Andreessen Horowitz (and a little more than a month after Facebook acquired WhatsApp for up to $19B). Meanwhile, the acquisition of Maker Studios at its $950M price with earnouts would be the third largest venture-backed IPO or M&A tech exit in LA since 2009 by valuation at the time exit – ranking behind Oak Investment Partners-backed Demand Media’s $1.5B IPO. But with Demand now trading at nearly a third of its IPO market cap having faced heavy criticism of its ‘content farm’ model, the case could be made that Maker represents a bigger win for the ecosystem. It should be said, though, that Bessemer Venture Partners-backed cloud talent management firm Cornerstone OnDemand has continued to soar after its 2011 IPO and now trades at $2.7 billion.

The chart below highlights the top 10 largest recent M&A or IPO tech exits (since 2009) in Los Angeles and Orange County by valuation at the time of exit. Given that the LA ecosystem has seen venture capital investors deploy over $3.5 billion over the past five years, it wouldn’t be surprising to see more distinctly SoCal VC wins in the near future.

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Note: The valuation used on IPOs is based on the company’s day 1 IPO valuation.

  • Hadji disband

    Green dot?

  • Jon535353

    greendot?

  • John Santos

    Doesn’t change the relative position in the ranking, but just for the record; ServiceMesh was acquired by CSC for $US 330M, not $300M as listed here.

  • http://www.matthewgoldman.com/ Matthew Goldman

    This chart is messed up. It appears to value the IPO only at the capital raised, not the net market capitalization of the company, which it should. Both GDOT and CSOD had closing day prices for their IPOs valuing them at greater than $1B each.

  • http://www.4044walnut.com Anand Sanwal

    Yes – good point. Will update. GDOT prob is questionable to be on this list as it’s really a financial services play (not tech).

  • http://www.4044walnut.com Anand Sanwal

    Have added but in all honesty, as this is Tech focused, it probably shouldn’t be on there as it’s really a financial services play.

  • http://www.matthewgoldman.com/ Matthew Goldman

    There is no doubt $GDOT should be on this list. GDOT is a financial services technology company, just like maker is a media technology company or Hautelook is a shopping/commerce technology company. GDOT may now own a bank to enable vertical integration, but its development and core enabling technology is a cash acceptance and digitization network that allows users to deposit cash at a retailer and spend it anywhere Visa/MC is accepted within minutes via this real-time transfer API. Thanks for updating the list–it’s important we properly state all of our great companies.

  • http://www.4044walnut.com Anand Sanwal

    Matt – Love the passion!

    Thanks for reading and keeping us honest :)