5 VC Investors Share Hot Takes and Predictions Ahead of TechCon SoCal
Fresh perspectives from LA, SF, and local venture capitalists on Southern California's thriving startup landscape and key themes going into 2025
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San Diego’s late-stage startup scene is thriving, with local companies across software, aerospace, defense, life sciences, consumer-goods, and energy sectors attracting significant capital over the past two years.
Top venture deals in the region include Platform Science’s $125M Series D, Shield AI’s notable $500M Series F, and consumer unicorn Vuori Clothing’s $825 million Growth. In biotech, standout financings in the last twelve months include Element Biosciences’ $277M Series D, Candid Therapeutics’ $370M debut, and Mirador Therapeutics’ $400M mega-financing.
Following three challenging years for early-stage founders and emerging fund managers, the venture capital landscape is showing signs of resurgence. As we head into 2025, many investors are feeling "broadly optimistic" about a revitalized deal-making environment.
In collaboration with TechCon SoCal, we interviewed venture capitalists from top firms such as Forgepoint Capital, Climactic VC, Ridge Ventures, Sunset Ventures, and Social Leverage. These investors shared their 2025 insights and explained why they’re heading to San Diego this January for one of the region’s most anticipated startup networking events, TechCon SoCal, taking place on January 17-18th.
Please note: Responses have been edited and shortened for clarity.
“We build real companies, down here in both Los Angeles and San Diego. From a narrative and a brand standpoint, we’re excited to see where deep tech and hard tech continues to advance, as I find both of those, to be equally as exciting”
1. Brandon Hoffman, general partner at Sunset Ventures
Hot Take for 2025: Politics aside, the incoming administration will be an interesting one. Not only is it seem to be more pro-business than before, but maybe more pro tech-and-innovation than we’ve seen before. It will be interesting to see if adoption happens faster, especially in big regulated industries? That includes categories like healthcare, financial service, civic and government. Also the defense technology category, which no one cared about ten years ago, but today it has become a thing.
Perspective on Southern California: We build real companies, down here in both Los Angeles and San Diego. From a narrative and a brand standpoint, we’re excited to see where deep tech and hard tech continues to advance, as I find both of those to be equally as exciting. In terms of flow of funds and return of capital — still to be determined — ServiceTitan’s IPO was good. It was much needed, bonus points that they are based down here in SoCal. So, one more on the scoreboard for us, but we need more of it — we need more distributions to happen again. By the middle of 2025, we should have a better grasp on how things are shaking out.
Why Attend TechCon: I’m excited to support the SoCal startup ecosystem and help foster stronger connections within the community. Events like TechCon SoCal are critical for bringing together founders, investors, and innovators to amplify relationships and drive growth. As a SoCal native, I’m passionate about seeing this region thrive, not just in deals but in camaraderie and collaboration.
“We'll continue to see the support system for entrepreneurs develop and that Social Leverage will have more opportunities to invest in outstanding founders in San Diego.”
2. Gary Benitt, general partner at Social Leverage
Hot Take for 2025: Although 2023-24 has been challenging as you stated, the low feels lower because it’s coming off of an extreme high in 2021-22. What we’ve seen in the last year or so was really a return to normalcy where the bar for investment is higher. My perspective was it was too easy to raise funding and now it’s slightly too hard, so while I think things will improve in 2025, I think it should remain difficult and my hope is that we don’t overcorrect again to something like we saw in 2021.
Perspective on San Diego: While Social Leverage doesn’t specifically look to invest in San Diego, we love doing so when the stars align; having in-person board meetings that I can drive to are much better than the alternative. I’ve seen the San Diego startup environment improve since I moved back here myself in 2016, with the help of other connectors doing things along the lines of what Faisal is doing with TechCon SoCal. My hope is that we’ll continue to see the support system for entrepreneurs develop and that Social Leverage will have more opportunities to invest in outstanding founders in San Diego.
Why Attend TechCon: This is my first time participating in TechCon Socal, I've heard good things. In general, my perspective is that it's critical to bring young founders together with people that have been in their shoes before. And of course with venture, industry, potential employees and customers. The more young companies can share their stories and experiences, the more they'll be able to improve their chances of achieving outsized success.
“The environment to raise more venture capital funds, which then you can invest in entrepreneurs, is expected to get better when there's more IPOs, which we do expect in the second half of 2025 as interest rates come down.”
3. Rajil Kapoor, managing partner at Climactic VC
Hot Take for 2025: Artificial Intelligence (AI) is a disruption that’s changing the way people conduct business and providing capabilities that people never had before. I think that will continue to be extremely strong in 2025. The environment to raise more venture capital funds, which then you can invest in entrepreneurs, is expected to get better when there’s more initial public offerings (IPOs), which we do expect in the second half of 2025 as interest rates come down.
Perspective on Southern California: Great companies are coming from everywhere these days. It’s no longer just about Silicon Valley, which is where I’m based, but great companies can be started everywhere with the application of the Silicon Valley mindset to growth. I think San Diego and Southern California in general have elements of that. There’s no shortage of great entrepreneurs that are building companies in 2025.
Why Attend TechCon: For me, at Climactic VC — I believe in giving back. I grew up in a smaller town in Pennsylvania, and I go back there a few times a year and talk to folks about what’s going on in today’s environment and share insight. The goal is to also give back to Southern California as well.
“Even though Silicon Valley tends to get the spotlight, there are other key innovation hubs like Southern California, that also need exposure which includes both San Diego and Los Angeles.”
4. Ernie Bio, managing director at Forgepoint Capital
Hot Take for 2025: We are most excited about companies that are at the intersection of cybersecurity, infrastructure and AI. It’s clear that no matter where you invest — AI has become a critical component of that technology.
Perspective on Southern California: Even though Silicon Valley tends to get the spotlight, there are other key innovation hubs like Southern California, that also need exposure which includes both San Diego and Los Angeles.
Why Attend TechCon: We applaud Faisal for helping foster innovation in SoCal and I look forward to meeting startups and investors from the SoCal area. It’s all about building meaningful relationships and supporting the ecosystem.
“AI has created a lot of opportunities, but the core principles of backing a team at this early stage still applies, and that’s something that we are rigorously disciplined about.”
5. Yousuf Khan, General Partner at Ridge Ventures
Hot Take for 2025: AI has caused a huge shift in the industry, and I think that’s bought a lot of excitement. It’s taken a lot of mindshare. It’s also created some concern, of course, in a number of different circles.
But ultimately, when we look at AI, we apply the same, similar principles of investing. Is it solving a major problem that businesses are willing to pay for? Do we think that this could be a sizable company in the longer term? And, at this stage of investing, is the team that is building this, could build a company for the longer term. It needs to be investable. AI has created a lot of opportunities, but the core principles of backing a team at this at the early stages still applies, and that’s something that we are rigorously disciplined about.”
Perspective on Southern California: Our firm has been around for 17 years and in recent years, what we’ve seen is that the overall innovation ecosystem has evolved. Ecosystems are now being built in different parts of the United States. We continue to be very excited about that opportunity to help entrepreneurs build great companies. We have spent a little bit of time in San Diego. Of course, it has reputable companies like Qualcomm, which have had a very dominant brand. A growing number of companies in the biotech space, which have also become very prominent.
Why Attend TechCon: I was at the last conference last year, and it was great to meet so many founders and investors in a single place. Having an event like TechCon amplifies that effort, pushes the ecosystem forward. I’m super excited about attending in 2025.
Editor’s note: Interested in the founding story of TechCon SoCal. You can read our article on the founder and organizer Faisal Mushtaq published in 2024 here.