In a big vote of confidence for the Los Angeles startup scene, CrossCut Ventures has closed a $75 million third fund. The Venice, California, venture capital fund focuses on early-stage and seed investments and will use the money to add 25 to 30 companies to its portfolio over the next two to three years. CrossCut will continue to prioritize L.A.-based companies and deals with strong local co-investors.
CrossCut 3 drew capital from six nonprofit foundations and endowments, including The James Irvine Foundation and Top Tier Capital. The oversubscribed fund — the VC initially aimed for $50 million — more than triples the firm’s previous two funds of $21 million and brings its total raise to $96 million.