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OC Tech, Life Science Firms Attract $1.6B in Funding
Orange County technology and life sciences companies are continuing to attract investment. In fact, in 2018-2019 there have been 27 funding rounds of $20 million and greater for Orange County tech and life sciences companies, totaling $1.58 billion, according to research by JLL.
JLL’s Scott Wetzel says, “Orange County-based tech companies continue to garner national attention from Venture Capital firms. The top five investment rounds contributed just under $1 billion, or 61%, of total funding in the trailing 12 months. NextGen Healthcare, UST Global, Acorns, Rocket Lab & Cylance occupy over 500,000 square feet and have had a very positive impact on net absorption. Additionally, these companies are a microcosm of Orange County’s diversified economy, representing a broad spectrum of industries: healthcare, IT, fintech, aerospace & cybersecurity.”
The investment rounds have been spread across several sub-sectors, with electronic health record, IT, fintech, aerospace, medical device, software, and cybersecurity each reaching more than $100 million. While these companies can be found throughout Orange County, there is a heavy concentration in Irvine with 17 of the rounds occurring at firms in Irvine, totaling $1 billion, notes JLL.
Orange County has become an emerging tech and life sciences market, with these industries now major drivers for the local economy and commercial real estate market.
JLL’s Jason Lantgen says, “Strategically positioned between L.A. and S.D., O.C. has regularly shown a diversity of innovation. Many of these founders have had previous success at past startups, or were part of larger private companies that have selected the region due its talent pool and ability to retain their workforce. This is fueled by the talent coming out of the universities within the region, from which more engineers graduate than anywhere else in the country.”
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