new venture capital fund
Two new venture capital funds in L.A.: One for gaming. One for business software
Investing in start-ups trying to make video games has fallen out of favor in much of the venture capital community. They're difficult-to-predict businesses, driven more by characters and animation than by novel technology and often have limited potential buyers if they don't work out as well as expected. But Xsolla, a Sherman Oaks company that helps game makers offer virtual goods and process payments, needs more developers to thrive to keep its own business healthy. So its founder is stepping in to help fund small gaming companies. Alex Agapitov and two business partners pooled their personal money along with cash from other wealthy individuals to form Xsolla Capital. None of the money is from Xsolla's profits, Agapitov said.