Southern California is a hotbed of young and innovative companies, but you wouldn’t know it by following the money.
Venture-capital funding, the lifeblood of start-ups, has fallen sharply in the region so far this year, according to a report released Thursday.
Southern California companies raised $507.6 million from venture-capital investors in the first three months of the year, a 42% decline from the nearly $880 million in the first quarter of 2012. The data were compiled by Dow Jones VentureSource.
It’s the smallest amount raised in any quarter since the $507 million registered in the second quarter of 2009, just as the stock market was bottoming out from the global financial crisis.
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