As the financial markets struggle through a historically rough period, venture capital funding has begun drying up across the country. But Los Angeles, thus far, has been mostly spared the pain.

According to a report released this month by Dow Jones VentureSource, startups in the Los Angeles metropolitan area received $406 million in venture capital funding in the third quarter, a 31 percent jump from the same quarter last year.

Meanwhile, a similar report issued this month by PricewaterhouseCoopers and the National Venture Capital Association found that the number of deals completed in the county last quarter jumped 26 percent to 43.

The total value, however, was inflated by a single $140 million investment in Santa Monica-based alternative energy company SolarReserve.

Experts say that while venture capital is tightening nationwide, alternative energy is one of the more attractive industries and could continue to find funding even in a down economy.

“With the lull in the IPO and liquidity markets, investors are focusing their attention in other industries such as alternative energy,” said Gina Chan, research manager for Dow Jones VentureSource. “I think investors are going to continue to fund these companies.”

After SolarReserve, a pair of Manhattan Beach companies boasted the next largest investments for the quarter. Intelligent Beauty LLC, an online marketing firm, pulled in $43 million, while Vantage Oncology Physics Inc., an operator of radiation oncology centers, received $40 million during the quarter.

Nationally, the investment picture is a bit less rosy. Investment in the third quarter fell 7 percent from last year to $7.4 billion, Dow Jones reported.

Regulatory Restrictions

With the financial turmoil weighing down its books, Alliance Bancshares California has until Dec. 9 to submit a capital maintenance plan to federal regulators.

The Culver City-based holding company for Alliance bank said the Federal Deposit Insurance Corp. and the California Department of Financial Institutions have directed it to take steps to maintain sufficient liquidity and ensure that the institution remains “well-capitalized,” according to an Oct. 17 filing with the Securities and Exchange Commission.

The banks said the two regulatory agencies will allow it to issue or sell securities, or merge with another institution to get out of its financial problems, but did not indicate what it planned to do. The company also has not commented on its problems but in an earlier quarterly filing blamed them on bad real estate loans.

“We have been adversely impacted by the deterioration in the Southern California real estate markets,” the company said. “This has particularly impacted our construction lending, a substantial portion of which has included loans for the construction of tract projects and single homes built for unidentified buyers and loans to improve land.”

Alliance’s agreement with regulators also requires the bank to receive regulatory approval to appoint senior executives, purchase stock or pay cash dividends. Investors are spooked, with shares dropping by one-third to $2 since the Oct. 17 filing.

With assets of $1.1 billion and six local bank branches, Alliance is a relatively small institution, but its troubles are being felt across the industry.

Earlier this month, Los Angeles-based Hanmi Financial Corp. said that it had entered into a similar arrangement with regulators. In addition to shoring up its capital levels, Hanmi was directed to strengthen management and board oversight of senior executives.

Hanmi, which has nearly $4 billion in assets and one of the country’s largest networks of ethnic Korean banks, also has been burdened by mounting real estate-related losses for much of the past year.

Branch Openings

Troubles in the financial services industry have not stopped some banks from expanding.

San Francisco-based Wells Fargo & Co. and Dallas-based Comerica Inc. each opened branches in Los Angeles County this month.

Wells Fargo, the third-largest bank in Los Angeles as ranked by assets, opened its Los Angeles Community Bank regional headquarters last week in Beverly Hills.

Comerica, L.A.’s 11th largest bank, opened a full-service branch in Marina del Rey, its 24th local office.

Comings and Goings

Beverly Hills-based City National Corp. has hired Gina Gentleman as vice president of its private client services group. Roy Disney’s Burbank-based investment vehicle, Shamrock Capital Advisors Inc., has appointed Kevin Cameron to the advisory panel of its Shamrock Activist Value Fund.

Staff reporter Richard Clough can be reached at [email protected] or at (323) 549-5225, ext. 251.