While not as established in the world of entrepreneurship as its Northern California counterpart Silicon Valley, Los Angeles has been making a name for itself in the global startup scene over the past several years.
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If you're not convinced of L.A.'s potential as the home of your first (or next) startup, read on as we list what sets the City of Angels apart from, if not above, many other major metroplitan areas.
Learn more about the Los Angeles startup scene by attending the free Founder Institute Information Session.
A rapidly expanding startup ecosystem
The TechCrunch article “There’s Something Going On In L.A.” by Mark Suster presents some surprising data about Los Angeles’ startup scene; not only is it the third largest tech ecosystem in the United States, it is also the country’s fastest growing tech ecosystem. Over the past several years, L.A. has given birth to a multitude of promising companies. In fact, around 250 companies have raised $1 million or more, including Honest Company ($70 million), JustFab ($85 million), and ZipRecruiter ($63 million) since 2012. L.A.'s startup scene has seen total annual investment approach $4bn, a figure which has increased substantially every year with a positive forecast for 2016.
A diverse customer-driven infrastructure
Built largely on content, commerce, and communications, Los Angeles is ideal for founders looking for a large market to break into.
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Content: Home to such companies Maker Studios, Fullscreen, AwesomenessTV, and Big Frame, Los Angeles is at the crossroads of creative content and cutting-edge technology.
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Commerce: As the largest retail and trade employment metropolitan zone in the United States, L.A. is criminally overlooked as a major commerce hub. Few know that thirty-six percent of all apparel jobs in the country are in L.A., and is home to such commerce-targeted startups like Tradesy, DailyLook, NastyGal, Honest Co, and JustFab, among many others.
- Communications: L.A. is quickly establishing itself in the communications space with the recent emergence of successful startups like Snapchat, Tinder, Whisper, and textPlus.
Connections to the entertainment industry
While the L.A. area is known around the world as a major force in the entertainment business, not too many are aware of the unique opportunities this presents for the Hollywood-minded entrepreneur. For example, did you know that both Disney and Warner Bros. have accelerator programs? Powered by TechStars, the Disney Accelerator’s selected companies have access to the wide range of creative expertise and resources of The Walt Disney Company to help them develop innovative entertainment experiences and products, while Warner Bros.’s Media Camp is a comprehensive 3-month accelerator program where early-stage startups with technology relevant to the media and entertainment industry will receive $20 thousand along with potential for commercial agreements.
An alternative to working in Silicon Valley
Several years ago, Los Angeles was considered a risky location to build a startup. Things couldn’t be more different today, however, as many top Silicon Valley-based engineers, designers, and other industry professionals are migrating to the City of Angels. In a Fast Company article titled “The Snapchat Effect: How Los Angeles Startups Are Snatching Silicon Valley's Tech Talent”, Nicole LaPorte notes how several successful LA-based startups have been on a poaching spree, snatching top executives from the likes of Facebook and Google.
A wide-ranging market
Los Angeles’ startup scene is surprisingly varied, consisting of numerous thriving industries. According to a Forbes article by Lori Kozlowski titled “L.A.'s 2014: New Year. New Start. New Tech.”, L.A.’s entrepreneurial ecosystem is active in video, games, mobile, e-commerce, social media, cleantech and biotech, financial tech, and some enterprise and cloud solutions. Another popular market in the region is mobile entertainment, making L.A. a veritable mecca for tech entrepreneurs.
Learn more about the Los Angeles startup scene by attending the free Founder Institute Information Session.
Ready to launch your dream company? Apply to the Los Angeles Founder Institute today and get started.
(Los Angeles, California, USA early morning downtown cityscape image by Shutterstock)
