Over a decade ago, Crosscut Ventures made a bet, not in a technology but in a city. That city was Los Angeles, and many companies and four funds later, that bet – despite having been wagered just around the time of the 2008 financial downturn – seems to have paid off. Now a well-established venture fund, Crosscut Ventures has not forgotten its local roots in the LA ecosystem. “The investments we’ve made in
the last ten years really track the LA ecosystem,” says Maureen Klewicki, a senior associate at Crosscut Ventures. “We’ve been all-in on LA for a long time, and we’ve seen the ecosystem develop and grow, and now it really feels like it’s at an inflection point where we have talent coming out of companies that were started here and raised funding here.”

As a generalist fund, Crosscut Ventures has invested across a wide range of industries, from mobility and esports to space and other frontier investments. In addition to its typical investments, which range from $1.5 million to $2.5 million at the seed round, Crosscut Ventures also reserves 200 percent of its initial investment for follow-on capital. 

The fund, which is run by a team of investors who all come from operational backgrounds, including former founders, lawyers and executives, also aims to support startups in other ways, such as through a wide network of industry experts and deep connections to local players in the ecosystem. And, as a locally founded and based fund, Crosscut Ventures knows the ecosystem better than almost anyone and has a vested interest in seeing it flourish. “What’s compelling is that you have an industry that is tech focused, but you also have consumers here,” Maureen says. “There are so many people that are eager to start companies and build them in LA.” 

Have boots on the ground.
We like people who have been in the field. They see a unique opportunity to leverage technology to improve efficiency, create better outcomes, lower costs and so on. 

Show some traction.
Usually, we come in once a company has product-market fit and we’re able to pour fuel on the fire in terms of sales and marketing. There are exceptions to every rule, and we have some preproduct investments and later-stage bets, but generally, we like to see product-market fit.

Have a strong management team.
We like to see domain expertise in our founders. 

Do something new. 
One thing that’s exciting is how our mix of investments has changed and evolved with the tech ecosystem. We’re always interested in investing in new categories, in new areas that are being created.

Have LA roots.
We’re really excited to invest in entrepreneurs that are born and bred in LA. 

Maureen Klewicki, info@crosscut.vc