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Neal Hansch with Rustic Partners shared just how vibrant the tech community is in LA
At this year's Vator Splash LA at the Fairmont in Santa Monica, Neal Hansch, partner at Rustic Canyon Partners, gave the event attendees a State of the Union for LA tech companies.
Hansch shared just how vibrant the startup and tech world is in Los Angeles now that more incubators and VCs are cozying up in the warm beaches in Southern California.
Here are some key points that Hansch made about how far LA has come:
-- Los Angeles is an entrepreneurial powerhouse. In fact it has the highest entrepreneurial rate of any one region at 580 per 100,000 adults so fear not -- you are in the right place. And according to a recent study from the Startup Genome, LA is listed #6 in the world for startup ecosystems, based on average “throughput” and active ecosystem, behind #2 New York, and #1 Silicon Valley.
-- While Los Angeles is no stranger to tech company success, it definitely has its strong segments that just naturally work with the industries and talent already vibrant here.
-- The areas that Los Angeles is great at are: digital media, eCommerce, gaming, direct marketing and clean tech.
-- This past quarter there were more than 60 deals that went through to fund tech companies in the Los Angeles area.
-- Silicon Valley and Los Angeles are becoming strong alleys with less distance between them.
-- Some great companies that are helping raise the buzz about Los Angeles tech are the DollarShave Club, Demand Media, Honest and Beachmint. There is also the celebrity endorsement and backing phenomena that is a tool Los Angeles companies know how to use and are able to access without as many challenges as outside companies.
-- What you have right now is a dozen incubators spiting out their first, second and third classes and so they are just gaining visibility. Just a year ago most of the incubators were just starting to pop up and now there are a fleet of fun, new companies that are running out of the gate with profitable business models.
-- The momentum is stronger than its ever been. The big strategic players in town are more open and active.
-- Don't worry, this is just the beginning.
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