CrossCut Ventures raises $75 million for its third fund

CrossCut Ventures, a Los Angeles-based, early-stage venture capital firm, has closed its $75 million third fund.

Now, CrossCut Ventures is one of the largest seed-stage funds in Los Angeles, a city that's home to successful startups like Snapchat, Whisper, and Dollar Shave Club.

Cofounder and managing director Brian Garrett says the new fund is relatively oversubscribed in comparison to its initial $50 million target.

This is in part because it's the first time CrossCut has tapped into institutional investors - Top Tier Capital Partners and The John Irvine Foundation both invested in CrossCut's new fund.

Founded in 2008 by Garrett, Rick Smith, and Brett Brewer, CrossCut was among the first seed-stage funds to appear in Los Angeles. Its portfolio companies include suit rental service The Black Tux, SaaS company Conversion Logic, adtech company GumGum, and mobile streaming and gaming startup Mobcrush.

Garrett tells Business Insider that the fund plans to continue focusing on Los Angeles-based early stage tech companies, particularly in SaaS, e-commerce, adtech, and gaming. To that end, CrossCut has hired gaming veteran Clinton Foy as the firm's fourth managing director.

CrossCut has made 45 investments and its portfolio company has had 10 exits to date. Garrett tells Business Insider CrossCut will continue funding 8 to 10 years annually.