Why LA May Be The New Silicon Valley

While people from around the world are drawn to the City of Angels for its movie stars, sunny weather and food; recently, people from up north are attracted to LA for different reasons. Silicon Valley, ground zero for tech and billion dollar “unicorns”, has become a competitive sandbox; so the nature of the startup industry has led some adventurous young companies south to Los Angeles.

Entrepreneurs are started to get wind of the wealth of opportunities Los Angeles presents that Silicon Valley now lacks from overcrowding.

Here are some of the reasons why they are spending more time in Southern California.

  1. The Electricity

Jason Zuccari, president and co-founder of the app Sweeble, is drawn to Southern California because of the people. After throwing his party at the world-famous Chinese Theater in Hollywood, with more than 500 people in attendance who had already been using his app; and possibly more who hadn’t heard of it yet.

“There’s a lot of huge brands down here that we’ve been working with,” Zuccari says. “Being able to have that electricity with it has made it a thrill and has energized the company.”

  1. The Access

Some of the biggest movers and shakers in the world, especially in online and digital media, are based in L.A. Alex Gold, co-founder ofBuzzStarter, states that capturing top bloggers and publishers in L.A., can get you quick access to social networks. For social media sites like Snapchat, Vine, and Instagram, L.A. is a great place to get immediate access to prominent investors.

In L.A., startups like BuzzStarter have access to the entertainment companies; and because BuzzStarter specializes in content marketing, it’s important for the company to have an LA face, so to speak.

  1. The Resources

In L.A., the startup community is still developing. This gives growing companies the opportunity to get access to key area players like social influencers, financiers, technologists, and developers. Because there’s so much competition in San Francisco, startups find it’s much more difficult to get access to those resources — and the L.A. community is less socially awkward or entrenched in the “brogrammer” culture.

For raising funds or getting visibility, it is who you know; and in L.A., everybody knows everybody.

  1. The Money

There is enough old and new Hollywood money to rival those of venture and angel investors in the other “Valley”. Zuccari has found that Los Angeles has a large number of investors interested in technology. Even big Hollywood celebrities are drawn to the exciting world of tech startups.

Though the drive to Los Angeles can takes at least six hours. Startups see great benefit in taking that trip (which is really only about an hour by plane). As L.A. draws tech companies from Northern California, L.A. residents are also benefiting from the influx of new ideas to their town.


Richard Maize is a real estate professional and philanthropist. Learn more https://about.me/richardmaize.