Los Angeles is the most interesting tech startup region

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Since we moved Incentive to the US we have constantly been asked - why Los Angeles? We gave a brief answer in this blog in May 2013 and another more lengthy one in December.

Today, we can look back upon our choice as a very wise one. Several industry experts have since praised the so called SoCal-area as being one of the most interesting tech startup region in the US, and even among the top in the world.

In October 2014, Techcrunch declared that "There's Something Going On In L.A." - inspired by Mark Suster's great analysis of the SoCal region as one of the most successful ones.

And...we would like to add four interesting facts about Los Angeles, or the SoCal-area, as a tech startup region:

Los Angeles is the 3rd largest tech ecosystem in the US

Perhaps not so surprising for anyone, Los Angeles turns out to be the 3rd largest tech ecosystem in the US. Given that LA is the second largest city in the US, this is not strange at all - but added to all of the other 3 facts, it's compelling evidence that this area really is something special.

Los Angeles is the fastest growing tech startup region

By numbers of companies being started, LA is now the fastest growing tech startup region in the US. And the pace has been taking off for real during the past few years. The number of tech startups has grown by 5.3% each month, which is considerably more than that of Silicon Valley. But - since Silicon Valley also is considerably larger, perhaps that might not come as a shock either.

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Los Angeles has more people employed in high-tech jobs than any other metro region

Some 368.500 people in the SoCal-area are employed in high-tech jobs. That accounts for a smashing 9% of all of LA's jobs and 17% of total wages. The sheer number of high-tech employees is more than in any other metro region in the US.

250 companies have raised more than $1M since 2012

This growth is bound to attract some capital, right? So how's this been going for the past few years? It turns out that more than 250 companies have raised more than 1$M each sine 2012, which is amazing. As for Incentive, we raised $1.8M last May and will raise another $3M in November.

"In the last full year where we have data LA attracted $1.5 billion in venture capital to LA’s technology startups and 2014 will shatter that figure", Suster writes.

Over the last four years tech fundings in LA have grown by 30% each year, which is four times US average.

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So...these are just some of the numbers that prove LA to be a very interesting tech region, perhaps the most interesting of them all. At Incentive, we are very happy to be part of something that grows this big and this quick - and of course we would like to contribute to this fantastic adventure.

If you are in LA or the Westside, we'd love to meet you for coffee.

 

Suster's full SlideShare deck can be seen below: