Apr 27, 2013 · 1 minute

Yesterday, Michael Carney wrote a post dissecting the findings of Built in LA's Digital Startup Report. The big takeaways? 220 startups launched out of LA last year and the ecosystem as a whole raised $847 million.

These are positive signs, but Carney writes that he'd like to see more local players making big investments beyond Series A rounds:

Look back at the largest deals completed in LA in 2012 and you’re unlikely to see an LA lead investor. It’s good news that top tier investors like Andreessen Horowitz, KCPB, Benchmark, Accel Partners, Battery Ventures, General Catalyst, and others have shown increased willingness to invest in LA. But there’s inherent value in having capital and the associated advisory resources local. For the LA ecosystem to take the next step in its maturation, additional late stage capital is a must. (For what it’s worth New York is facing the same challenge.)
This ignited a lively debate on Twitter between Carney and some LA investors over whether LA funds are too risk averse or if they simply can't compete with the larger out-of-town funds (and how these perceptions could impact future investment activity).

We regularly cover the ongoings in the LA ecosystem, but next month we're planning a special report on its biggest challenges, personalities and heavy hitters. The Twitter fireworks below are just a sampling of the coming debate about the future of startups in LA.