{"id":25026,"date":"2017-01-18T14:42:17","date_gmt":"2017-01-18T19:42:17","guid":{"rendered":"https:\/\/www.wework.com\/creator\/?p=25026"},"modified":"2020-02-26T14:32:28","modified_gmt":"2020-02-26T19:32:28","slug":"los-angeles-isnt-silicon-valley-thats-entrepreneurs-love","status":"publish","type":"post","link":"https:\/\/www.wework.com\/ideas\/professional-development\/los-angeles-isnt-silicon-valley-thats-entrepreneurs-love","title":{"rendered":"Los Angeles isn\u2019t Silicon Valley\u2014that\u2019s why entrepreneurs love it"},"content":{"rendered":"\n<p>Entrepreneur Dan Smarg doesn\u2019t mince words: People might like drawing comparisons between San Francisco and Los Angeles\u2014Silicon Valley versus Silicon Beach\u2014but if you\u2019re starting a business today, Los Angeles wins hands down.<\/p>\n\n\n\n<p>Sure, it doesn\u2019t have an Amazon yet. There\u2019s no Google or Facebook, no homegrown company that has made headlines with a record-breaking IPO. (Although everybody\u2019s betting that <a href=\"http:\/\/www.businessinsider.com\/snap-prepares-ipo-frames-evan-spiegel-as-visionary-for-investors-2017-1\">Snap will be the first within a couple of months<\/a>.) But Smarg says that doesn\u2019t bother him.<\/p>\n\n\n\n<p>\u201cSilicon Beach is bustling precisely because we are not established, because we have no track record,\u201d says the <a href=\"https:\/\/www.wework.com\/buildings\/312-arizona-ave--los-angeles--CA\">WeWork Promenade<\/a> member and founder of a photography app called <a href=\"http:\/\/fotogenieapp.com\/\">FotoGenie<\/a>. \u201cWe\u2019re comprised entirely of iconoclasts and lean innovators. We kick convention to the curb.\u201d<\/p>\n\n\n\n<p>The entrepreneurs we interviewed for this piece agreed that Los Angeles was the perfect place for them to start a business. That includes Rob Emrich, whose Santa Monica-based mobile advertising platform, <a href=\"https:\/\/www.majority.co\">The Mobile Majority<\/a>, was named the region\u2019s fastest growing tech startup for the second year in a row. The <a href=\"http:\/\/labusinessjournal.com\/\"><em>Los Angeles Business Journal<\/em><\/a><em> <\/em>calculated its two-year revenue growth at an incredible 4,588 percent.<\/p>\n\n\n\n<p>\u201cWhen I moved here five years ago, I had been considering San Francisco, Los Angeles, and New Orleans,\u201d says Emrich. \u201cI feel very lucky to have landed here.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image alignnone size-full wp-image-25084\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"467\" src=\"\/ideas\/wp-content\/uploads\/sites\/4\/2017\/01\/Jill-Bigelow-Mama-Strut-2.jpg\" alt=\"Los Angeles gives your new business &quot;access to pretty much everything,\u201d says Jill Bigelow, who creates products for new mothers like Mama Strut. \" class=\"wp-image-25084\"\/><figcaption>Los Angeles gives your new business &#8220;access to pretty much everything,\u201d says Jill Bigelow, who creates products for new mothers like Mama Strut.<\/figcaption><\/figure>\n\n\n\n<p>Emrich says L.A.\u2019s tech sector has exploded over the past few years. It now holds its own in a city known for film and television, music, and media.<\/p>\n\n\n\n<p>\u201cI think San Francisco is an industry town for technology, just like D.C. is an industry town for politics,\u201d says Emrich. \u201cThis place is far too big for any one industry to dominate it, even entertainment.\u201d<\/p>\n\n\n\n<p>Here\u2019s a little of what L.A. has going for it:<\/p>\n\n\n\n<p><strong>A huge startup scene that\u2019s still growing. <\/strong>L.A. is already the <a href=\"http:\/\/www.economist.com\/news\/business\/21709564-cheaper-location-tech-companies-takes-los-angeles-booms-startup-hub\">third largest startup hub in the world<\/a>, behind Silicon Valley and New York City. And it\u2019s growing by leaps and bounds. The $6 billion in funding startups received in 2016 has tripled over the past four years. \u201cAnd it&#8217;s on its way to getting bigger,\u201d says <a href=\"https:\/\/www.wework.com\/buildings\/gas-company-tower--los-angeles--CA\">WeWork Gas Tower<\/a> member Gina Pak, cofounder of the legal platform <a href=\"http:\/\/www.lawgood.io\">Lawgood<\/a>, \u201cwhich is good because it&#8217;ll bring in more connections, more funding, and more chances of success for startups here.\u201d<\/p>\n\n\n\n<p><strong>More engineers than any other city.<\/strong> That\u2019s right, <a href=\"https:\/\/techcrunch.com\/2014\/10\/08\/theres-something-going-on-in-l-a\/\">colleges here produce more graduates with engineering degrees<\/a> than New York or Boston. \u201cThere are many top-tier colleges in Southern California,\u201d says <a href=\"https:\/\/www.wework.com\/buildings\/520-broadway--los-angeles--CA\">WeWork Santa Monica<\/a>-based entrepreneur David Baird, founder of a platform for the music industry called <a href=\"https:\/\/www.gigmor.com\">Gigmor<\/a>, \u201cand graduates often want to stay in the area.\u201d And because the startup scene isn\u2019t so intense, your new engineer isn\u2019t as likely to be poached after being on the job for a couple of months.<\/p>\n\n\n\n<p><strong>All the right ingredients for success.<\/strong> \u201cI am a little biased, since I am an L.A. native, but I think L.A. is a great place to start a business because of the access to pretty much everything,\u201d says Jill Bigelow, who creates products for new mothers like <a href=\"http:\/\/www.mamastrut.com\/\">Mama Strut<\/a>. \u201cWithin a relatively small area, you have some of the best of what you need to start a business, from developers, artists, and designers to lawyers, financial experts, and operations specialists.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image alignnone wp-image-25044 size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"453\" src=\"\/ideas\/wp-content\/uploads\/sites\/4\/2017\/01\/Arteen-Arabshahi-1.jpg\" alt=\"\" class=\"wp-image-25044\"\/><figcaption>Venture capitalist Arteen Arabshahi, vice president of Fika Ventures, says San Francisco and Los Angeles are now on &#8220;pretty much an equal playing field.&#8221;<\/figcaption><\/figure>\n\n\n\n<p>There are some things that L.A. still lacks: for starters, there aren\u2019t as many deep-pocketed investors who can single-handedly fund the next big startup. But venture capitalists here are more likely to join together to fund promising companies.<\/p>\n\n\n\n<p>If you want to get a sense of what L.A. is like for investors, talk to Arteen Arabshahi. He and two of his colleagues are forming a venture capital firm that\u2019s betting on L.A. businesses.<\/p>\n\n\n\n<p>\u201cSan Francisco and the Bay Area will always be the hub of the country\u2019s startup scene, at least for the foreseeable future,\u201d says Arabshahi, vice president of the newly founded <a href=\"http:\/\/fika.vc\/\">Fika Ventures<\/a>. \u201cBut L.A. has reached a point where it\u2019s totally viable. As far as I\u2019m concerned, it\u2019s pretty much an equal playing field.\u201d<\/p>\n\n\n\n<p>And it\u2019s more than that. He believes that L.A. has advantages that San Francisco just can\u2019t match.<\/p>\n\n\n\n<p>\u201cSome industries\u2014the obvious ones are media, fashion, and branding\u2014have a strategic advantage when they\u2019re based here,\u201d says Arabshahi. \u201cBut there are some less obvious examples as well, such as consumer-facing marketplaces.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image alignnone size-full wp-image-25086\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"467\" src=\"\/ideas\/wp-content\/uploads\/sites\/4\/2017\/01\/WeWork-Gas-Tower.jpg\" alt=\"L.A. is already the third largest startup hub in the world. And funding for startups has tripled in the past four years.\" class=\"wp-image-25086\"\/><figcaption>L.A. is already the third largest startup hub in the world. And funding for startups has tripled in the past four years.<\/figcaption><\/figure>\n\n\n\n<p><a href=\"https:\/\/nativestatefoods.com\/\">Native State Foods<\/a> is one of those companies. Cofounder Claudio Ochoa says he can\u2019t imagine starting his business anywhere else.<\/p>\n\n\n\n<p>\u201cAs a healthy food startup, L.A. was the ideal place for us to start our business,\u201d says the <a href=\"https:\/\/www.wework.com\/buildings\/12655-w-jefferson-blvd--los-angeles--CA\">WeWork Playa Vista<\/a> member. \u201cBecause of the connection to the outdoors, it\u2019s a place where people are really in touch with the environment, sustainability, and wellness.\u201d<\/p>\n\n\n\n<p>Ochoa says he thinks founders here are more collaborative than in other startup hubs.<\/p>\n\n\n\n<p>\u201cIt\u2019s still competitive in L.A., but I think there is a greater sense of community,\u201d he says. \u201cWe\u2019d all like the billion-dollar exit, but there is a better sense of balance and purpose in L.A. As a result, founders are more open and supportive with each other. You\u2019re more likely to become friends than competitors here.\u201d<\/p>\n\n\n\n<p>Lawgood\u2019s Pak says that L.A.\u2019s friendliness makes it easy to be a first-time entrepreneur.<\/p>\n\n\n\n<p>\u201cI&#8217;m fairly a newbie to the startup scene,\u201d says Pak, \u201cbut my sense of what makes L.A. a great place for startups right now is that it&#8217;s a fairly small, close-knit&nbsp;startup community, which makes everyone more approachable and accessible.\u201d<\/p>\n\n\n\n<p>And one other thing: L.A. may be an expensive city, but <a href=\"http:\/\/www.nbcbayarea.com\/news\/local\/San-Francisco-Now-Has-the-Most-Expensive-Office-Rents-in-the-Country-364914191.html\">San Francisco prices have skyrocketed<\/a> in the past few years.<\/p>\n\n\n\n<p>\u201cOne of the main reasons we&#8217;re in L.A. versus San Francisco or New York is that it&#8217;s still affordable to live here,\u201d says Pak. \u201cSo for a company that&#8217;s bootstrapping, that&#8217;s a great thing.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With a boom in startups, the L.A. tech scene is making a name for itself<\/p>\n","protected":false},"author":895,"featured_media":25038,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[43902],"tags":[39218,39221],"class_list":["post-25026","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-professional-development","tag-small-businesses","tag-entrepreneurs"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.4 (Yoast SEO v25.3.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Los Angeles isn\u2019t Silicon Valley\u2014that\u2019s why entrepreneurs love it<\/title>\n<meta name=\"description\" content=\"With a boom in startups, the L.A. tech scene is making a name for 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