Snap's IPO still reigns as the top exit for LA tech startups, as Ring adds to the list of $1B+ exits from the LA metro area.
Earlier this week, Amazon announced that it would acquire Santa Monica-based video doorbell company Ring. At $1.8B, this would be the tech giant’s second-largest acquisition, after its $13.7B acquisition of Whole Foods in June 2017.
The deal also marks the third-largest exit for an LA metro area-based tech startup since 2009.
Ring, which was rejected by judges on business reality show Shark Tank in 2013, went on to raise $183.7M in equity funding in less than 6 years. The company’s cohort of investors includes high-profile angel, VC, and corporate venture names like Richard Branson, Goldman Sachs, Qualcomm Ventures, Upfront Ventures, and Kleiner Perkins Caufield & Byers, among others.
The largest LA exit of all time went to Snap: the mobile social media company went public for $3.4B in March 2017, earning a valuation of nearly $25B. Facebook’s $2B acquisition of VR headset maker Oculus VR in 2014 ranks second.
Notably, all three of the biggest LA tech exits — Snap, Oculus VR, and Ring — offer some sort of consumer-focused video product.
Compared to NYC, LA has historically lagged in overall exits, though the city has had some notable big winners. The trend continues with Ring, which is the eighth $1B+ exit of a VC-backed tech company from the LA metro area since 2011. While LA’s biggest exits span a range of industries, a majority of the top 10 startups focus either on consumer products or media & entertainment solutions.
Using the CB Insights database, we compiled the ten largest exits of LA-based VC-backed tech startups since 2009. Check it out:
| Company | Industry | Valuation ($B) | Exit Date | Acquirer/IPO |
|---|---|---|---|---|
Snap |
Social | $24.8 | 3/2/2017 | IPO |
Oculus VR |
AR/VR | $2.0 | 3/25/2014 | |
Ring (pending) |
Consumer Electronics | $1.8 | 2/27/2018 | Amazon |
NantHealth |
Digital Health | $1.7 | 6/2/2016 | IPO |
Leaf Group |
Information Provider & Portals | $1.5 | 1/21/2011 | IPO |
lynda.com |
EdTech | $1.5 | 4/9/2015 | |
Dollar Shave Club |
eCommerce | $1.0 | 7/20/2016 | Unilever |
The Trade Desk |
AdTech | $1.0 | 9/21/2016 | IPO |
Alteryx |
BI, Analytics & Performance Mgmt | $0.7 | 3/24/2017 | IPO |
Maker Studios |
Video | $0.7 | 5/12/2014 | The Walt Disney Company |