Snap Inc. IPO tells world what LA already knew
Since Snap Inc announced that they’re filing for a $3 billion IPO on NYSE, we’ve seen a flurry of mainstream news outlets say that Snap will contribute to a new tech scene in Los Angeles. However, instead of considering Snap’s IPO to be the start of a story about the Los Angeles tech scene suddenly coming online, perhaps it’s actually the end of a long chapter of hard work and community support. For perspective, we look back at the tech companies and entrepreneurial spirit woven through LA’s culture for the past several years. After all, we know it takes years of work and perseverance to become an ‘overnight success.’
Accelerators speed things up a bit
From Amplify.LA, one of the most established accelerators and seed funds, to Make in LA, one of the newest accelerators with a focus on hardware, to Grid 110, a community organization partnered with the LA Mayor’s office which functions like an accelerator, a current map of these organizations across LA County reveals an intriguing trend of growth and support of startups.
Increased capital under management and interest in LA startups
Upfront Ventures is based in Los Angeles and was founded in 1996. Their current active fund is around $300 million, up 50% from their 2013 fund. Crosscut Ventures, founded in 2008, has $75 million in their current active fund, up exponentially from their initial raise. And Upfront, Greycroft Partners, and 500 Startups were recently named as the most active investors in Los Angeles-based tech startups. Another trend: venture capital firms with established offices in New York or San Francisco are capitalizing on Silicon Beach opportunities by opening offices in Los Angeles. One example is Interstate Venture Capital.
Coworking spaces follow startup boom
From 2014-2017, Cross Campus, Real Office Centers, WeWork, and Regus have expanded their presence throughout Los Angeles. From Pasadena and Downtown LA to West Los Angeles, these companies are answering a demand for professional yet economical office space for young and growing companies.
It is exciting to see a Silicon Beach based company prepare for the largest IPO in LA history. What do we think is even more exciting? We see a lot of local companies poised for a debut on the main stage. Los Angeles is an entrepreneurial and tech hub; and we are just getting started.
Photo credit: flickr/Pacheco.