Silicon Valley is so 2016.
Recently, Vanity Fair asked the question “Is the Silicon Valley Dynasty Coming to an End?” It’s certainly up for debate. Like all great dynasties, there eventually comes a time when cracks begin to show. You can’t stay number one forever.
In 2016, Los Angeles ranked as the third-most active city in the U.S. for entrepreneurs — beating both San Francisco and San Jose, according to the nonprofit Ewing Marion Kauffman Foundation. Companies in the L.A. area pulled in $4.5 billion in funding in 2015 — up 40 percent from 2014.
Much of this can be credited to LA’s long-standing skill in content creation vs gadget creation. Social apps like Snap, Tinder, and Whisper or e-commerce services like Dollar Shave Club or MeUndies have experienced mass adoption. VR/AR wizards at Oculus and Daqri call LA home. And, let’s not forget Hyperloop One and Elon Musk’s SpaceX which will change the way we travel.
As the wheels of innovation continue to turn and Venture Capital continues to pour in, Los Angeles is poised to continue its rapid growth. In October, LA Cleantech Incubator (LACI) held the grand opening of its La Kretz Innovation Campus, a 60,000-square-foot, $47 million accelerator for cleantech startups in the Arts District. Vista Studios is opening a new 30,000-square-foot, 4K-capable, independent production facility, scheduled to open during mid-May in Playa Vista.
And Loyola Marymount University is opening a new campus in Playa Vista, expanding its growing presence on the Westside and in Silicon Beach. This Jesuit university, which in recent years has dramatically built its programs and local partnerships in film and tech, will house its new campus in the Brickyard, a new 425,300-square-feet commercial development in the 12100 block of West Waterfront Drive that will also lease office and retail space to other tenants.
Of course, LA still has a long way to go before it supplants Silicon Valley as number one in start-up land. But, as the market continues to shift toward a more equal playing field, my guess is companies will like the idea of setting up shop a block or two from the beach or in the middle of Downtown Los Angeles’ growing arts district.
When they do, Relocity is here to help facilitate the acquisition and retention of the top-tier personnel any tech firm needs to succeed.
How’s the food in Palo Alto, anyway?