Is Los Angeles' 'Silicon Beach' about to challenge Silicon Valley?
CNBC recently detailed how an estimated $4.2 billion invested in LA tech firms last year is setting the area up to be the next Silicon Valley, according to Built in LA. PwC says that number is $4.7 billion when you combine Los Angeles County and Orange County.
Other than the local climate, two of the biggest draws for entrepreneurs and employees are the abundance of cleantech and video-related companies. As CNBC explains, 60 companies raised over $78 million in funds to develop green businesses last year through the Department of Water & Power’s LA Cleantech Incubator.
The proximity to Hollywood has launched entertainment-focused technology to the forefront at a time when video content is an exploding medium online. Along with large players like Venice’s Snap Inc., LA has also produced video startups like Maker Studios, Creators Media, Vertebrae, and more. Plus, the video focus has lent to a digital publishing and advertising tech sector centered around Santa Monica, Venice, and El Segundo.
At one point the LA tech scene sat squarely near the beach, but that footprint has grown exponentially. You can now find thriving technology firms in every corner of the county. Engineers graduate every year from UCLA, USC, Loyola Marymount, CalTech, and other education hubs, and now they’re choosing to stay in Los Angeles.
With tech giants like Facebook, Google, Microsoft, and Netflix parking additional offices in LA and making investments of their own in the market, the trend is likely to continue in the years to come.