Download - Final LA tech and venture landscape
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LA Tech & Venture Landscape
Mark Suster
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Silicon Valley dominated the infrastructure phase of the Internet. In effect, they built the roads, bridges and airports required for trade.
Infrastructure
Servers, Switches, Routers, Databases, Browsers, Search
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The “Application Layer” (Three C’s) of the Internet favors cities like LA: Content, Commerce & Communications
Personal computing
Telecommunications
Open source software
Scalable computing & storage
Application Layer
Content Commerce Communication
Infrastructure
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The Internet is largely becoming a video platform.
Content Commerce Communication
<30 minutes / day 5.3 hours / day
Past: Text
Present: Video & Games
Future: Augmented & Virtual Reality
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Many of the best video startups in the country are being built in Los Angeles.
• Writers • Directors • Actors • Special effects • Sound • Stages • Costumes • Make-up • Talent • Creator tools
VerticalBroad
Content Commerce Communication
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Content development companies are becoming
increasingly valuable
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Content has become incredibly valuable as distributors compete for exclusive media.
•
OTT
•
Mobile Video
•
Web
Content Distribution
Content Commerce Communication
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43M
31M
100M
13M
55M
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LA has become a powerhouse in games. Several hundred millionaires will help create the next wave of innovation.
$1.6B 2015 revenues
$Bn++Valuation when acquired by Tencent
Monthly Active Players Viewers of 2016 Finals
Source: Forbes, Fortune
Content Commerce Communication
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Virtual Reality
VR/AR are in the first inning but LA will be a leading player in what will be a dominant computing platform in 5-10 years.
The same skills that led video startups to LA are the basis for VR successes
Content Commerce Communication
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LA knows how to create consumer brands and has the celebrities to promote them.
Historic Brands Internet Brands
Content Commerce Communication
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Past Generation X
1.4B
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LA owns how the next generation of people communicate and meet with each other.
CommerceContent
Millennials & Generation Z
410M Snaps per Day
71%of Users
are < 25 yo
150MDaily Active
Users
83%of Users
are < 34 yo
35minper Day In-
App by DAUs
Swipes per Day
Source: “Snapchat’s Daily Active User Count has Surpassed a New Mile Stone” Kia Kokalitcheva, Fortune 9/26/16
Source: “How Snapchat Demographics are Surprising Shifting in 2016” MediaKix Source: Tinder
Source: “Tinder Forecasts Rise in Paid Subscribers, Ad Revenue” AdAge, 6/3/2016Source: “Research says 30% of Tinder Users are Married” Stuart Dredge, Business Insider, 5/7/15
Communication
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The “Snapchat Effect” of a public Internet company in Los Angeles will be enormous.
Attracting talent to Los Angeles
M&A and Biz Dev
Many millionaire angels
Future founders post IPO
CommerceContent Communication
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Venture in LA
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LA is #3 largest tech ecosystem in the US…
Bay Area New York Greater Northwest Boston Chicago Austin DC Colorado
12%
2%2%2%3%4%4%
14%
24%
Los Angeles
Source: AngelList – startup companies by region as of July 31, 2014. Note: SoCal includes LA (69%), San Diego (15%) , Orange County (9%), and other areas (6%), Northwest includes Oregon & Washington. Silicon Valley includes San Francisco & Bay Area.
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…and is among the fastest growing.
Greater Northwest Chicago New York DC Boston Bay Area Colorado Austin
5.3%
3.8%3.9%4%4.1%4.4%4.5%4.6%4.7%
Los Angeles
Source: AngellList – startup companies by region by month. Note: Compound monthly growth rate of new startups by region from Jan 2014 to June 2014
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LA’s venture community has never been stronger and is growing rapidly.
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LA has done great at funding early-stage innovation. Increasingly we should also develop some late-stage local funding sources.
Source: CBInsights
Seed Series A Series B Late Stage
[ ] ]Los Angeles Funds Bay Area Funds
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LA advantages
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Greater LA has more top 25 engineering schools than anywhere else in the country.
Source: US News & World Report, Accreditation Board for Engineering and Technology (ABET); Includes graduate universities within 150 miles of metropolitan area
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Greater
Boston
Bay Area
New York
10,945
6,811
7,561
9,862
Los Angeles
Sources: US News & World Report, Accreditation Board for Engineering and Technology (ABET); Includes graduate universities within 150 miles of metropolitan area
And Greater LA graduates more engineers than anywhere else in the country.
Engineering Graduate Enrollment
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LA has an affordability advantage over SF or NYC…
Source: Council for Community and Economic Research Cost of Living Index (via bankrate.com Cost of Living Calculator)
Los Angeles San Francisco New York
$162K
$126K$100K
equivalent income
equivalent income
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…and a clear weather and lifestyle bonus.
Pleasant days: Days with (1) mean temperature between 55° F and 75° F, (2) minimum temperature above 45° F, (3) maximum temperature below 85° F, and (4) no significant precipitation or snow depth
Source: Kelly Norton, Kellegous.com “The Pleasant Places to Live” graphic & analysis using NOAA data
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LA has infrastructure advantages in trade and population.
of top 10 major ports in the US
3
$460B
import / exports per year
most populous city
#2
18.7M
Greater LA population
Trade Population
Source: Kyser Center for Economic Research International Trade Outlook – Los Angeles County 2016-2017, United States Census Bureau: Annual Estimates of the Resident Population for Combined Statistical Area, Estimate as of July 1, 2015
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LA has always been an entrepreneurial city
Gre
ater
Mia
mi
SF
Hou
ston
NYC
Atla
nta
Phoe
nix
Rive
rsid
e
Dal
las
Seat
tle DC
Bos
ton
Chi
cago
Phila
delp
hia
Det
roit
530
190200200240240
290310
350360360360400
440
490
Los
Ang
eles
Source: Kauffman Index of Entrepreneurial Activity, April 2014
Entrepreneurs per 100,000 People
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Fast growing tech ecosystem
The future is sunny in LA.
Growing venture capital community
Content, Commerce, Communications
Talent + Lifestyle
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Thank you