Southern California Investment Surged in 2025 Led by Hard Tech Industry, Aerospace and Defense
In 2025, the 25 largest venture capital deals closed by Southern California companies raised a staggering $8.85 billion, with the majority of those funds going to aerospace and defense startups. These companies capitalized on the growth of the space economy as well as the current administration’s desire to build a national defense system for the next generation of warfare. Other companies raising significant funds included tech, life sciences and nuclear energy generation startups.
El Segundo-based cybersecurity firm Saviynt had one of the longest stretches between venture rounds, as it raised $700 million of growth equity a full seven years after its Series A funding. The investment was led by KKR at a $3-billion valuation, with participation from Sixth Street Growth and TenEleven as well as new funding from existing investor Carrick Capital Partners. Saviynt has grown steadily since its founding in 2010. The company currently employs 1,300 worldwide and became profitable in 2024, generating positive cash EBITDA for the fiscal year as annual recurring revenue surpassed $200 million.
“We wanted to find tier one investors who were aligned with our vision,” said Paul Zolfaghari, president of Saviynt. “We will use funds to build out our technology platform and expand our footprint in Los Angeles and globally. We are very aligned to go after the agentic AI and AI management challenge that companies are facing.”
Spaceship SpaceX Crew Dragon, atop the Falcon 9 rocket, inside the hangar, just before rollout to the launchpad.
Saviynt developed an identity management platform that is used by many of the world’s largest companies such as Hertz, Cigna and Halliburton. It has expanded that technology to help companies manage non-human identities and agents. Moreover, it has found success headquartered in Southern California, where it has been able to attract and retain top tech talent even though the Silicon Valley area has incubated many tech companies and still generates much greater venture capital investment. According to data from PitchBook, Southern California companies generated $17 billion in venture capital investment last year, compared with $177 billion raised by Bay Area firms.
“Los Angeles is an appealing location. We routinely host executives from around the world at our headquarters for executive briefings. We’re not in Silicon Valley and it’s been a compelling differentiator for us,” said Zolfaghari.
Conversely, many companies raised later rounds on a narrower time frame as demand for hard tech companies led to increased investment and multi-billion valuations. Costa Mesa-based defense firm Anduril Industries led the list with a $2.5-billion Series G round at a $30.5-billion valuation. That round more than doubled the Palmer Luckey-founded company’s $14-billion valuation when it raised $1.5 billion in 2024. The company recently signed a lease for a 1.1-million-square-foot research and development facility in Long Beach that is slated to open in mid-2027.
Some companies raised fresh capital twice during the year as they expanded operations. They include El Segundo-based nuclear energy startup Radiant, which raised a $165-million Series C round in May and then raised $300 million in December at a $1.8-billion valuation. The company is developing its Kaleidos portable nuclear reactor that can generate one megawatt of power. The most recent fundraise supports the scaling of commercialization efforts as it begins construction on its R-50 factory in Oak Ridge, Tennessee. Radiant is on track to test its reactor at the Idaho National Laboratory’s Demonstration of Microreactor Experiments facility this year.
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