LA-based Fika Ventures to consider more deals outside So Cal with second fund

When Los Angeles-based seed-stage investor Fika Ventures wrapped up its debut fund two years ago, it was part of a recent surge of venture activity in the California Southland.

In addition to Fika, such early-stage firms as Mucker Capital, Karlin Ventures, Crosscut Ventures, Double M Partners, Bonfire Ventures and most recently Beth Seidenberg‘s Westlake Village BioPartners, have emerged in and around Los Angeles in the last several years, taking advantage of an emerging tech and venture ecosystem in Southern California.

Perhaps then it is a sign of maturity that as Fika puts a bow on its second fund, it says it will look more at deals outside the City of Angels.

Fika, which focuses on B2B enterprise software and other sectors, announced yesterday it raised $76 million for its second fund, a 90 percent increase over its $40 million inaugural fund that closed in early 2017.

Founder and General Partner Eva Ho told VCJ that the firm remains excited about Los Angeles and the entrepreneurial community.

“We are committed to here, and Los Angeles is great,” Ho said. “But we also want to win deals in Boston, Chicago, New York, Silicon Valley, Austin and Seattle, and will continue to do so with our new fund.”

Ho, who lives in Los Angeles, says she and the team, which includes fellow founder and General Partner TX Zhuo, are generally not in the office as they travel the country from coast-to-coast, looking for deals. She says the firm is looking for a larger space in Los Angeles to house startups and host events.

Ho says close to half of the first fund was invested in the Los Angeles area and the firm will aim to do the same with Fund II. Fund I backed 24 deals, including bill pay service Papaya, customer support messaging platform Chatdesk and tax advisory service provider Visor.

The larger fund was a result of an increase in seed deal size, Ho says. Fika will look to lead deals about 30 percent of the time and the firm will reserve about half of the new fund for follow-on investments.

Zhuo wrote more about the fund in a Medium blog post.