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2019 LA Tech & Venture Scene | Amplify.LA

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The LA technology scene has come along way in the last few years. This deck offers a comprehensive overview of the Los Angeles technology and venture landscape in 2019. It covers the players, investors, history and future of LA tech, as well as leading sectors such as e-commerce, online media, e-sports, VR & AR, aerospace, logistics, marketplaces, gaming and more.

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2019 LA Tech & Venture Scene | Amplify.LA

  1. 1. @AMPLIFYLA ERIC PAKRAVAN | @EPAKRAVAN 2019 LA TECH SCENE
  2. 2. 2 @AMPLIFYLA VENTURE CAPITAL LANDSCAPE '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 $100B $75B $50B $25B $125B U.S. VC ACTIVITY BY YEAR 80K 60K 40K 20K 100K AMOUNTRAISED($) (#DEALS) SOURCE: PITCHBOOK U.S. venture activity in 2018 surpassed $100B for the first time since the dotcom boom.
  3. 3. 3 Despite reaching similar levels of VC funding, 2019 looks very different from 1999. @AMPLIFYLA VENTURE CAPITAL LANDSCAPE
  4. 4. 4 VENTURE CAPITAL LANDSCAPE @AMPLIFYLA New technologies have lowered the cost and removed barriers to launch an internet business. They have also opened up new forms of distribution.
  5. 5. '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 16 18 18 21 19 17 19 20 21 25 31 38 36 40 56 7 7 7 7 7 6 6 7 8 9 11 13 14 16 20 3 2 4 2 3 4 4 4 5 5 6 6 7 Seed Series A Series B 5 VENTURE CAPITAL LANDSCAPE $40M $30M $20M $10M MEDIAN PRE-MONEY VALUATIONS BY SERIES @AMPLIFYLA SOURCE: PITCHBOOK DATA In part, that’s helped raise the bar for attracting capital. Seed rounds have become the new Series A, and Series As are the new B rounds. $50M
  6. 6. 6 Those same technologies have also made it possible to launch multi-billion dollar technology companies outside of traditional tech hubs like Silicon Valley & Boston. @AMPLIFYLA VENTURE CAPITAL LANDSCAPE
  7. 7. 7 LOS ANGELES TECH L.A. GRADUATES MORE ENGINEERS THAN ANY OTHER METRO IN THE UNITED STATES.* *ACCREDITATION BOARD FOR ENGINEERING & TECHNOLOGY @AMPLIFYLA COMPANIES FUNDED (2017) 376 EXITS (2016) 80 Acquired by Amazon ($1B)Acquired by Apple ($3B) Acquired by Unilever ($1B) IPO ($24B) RECENT EXITS / IPO Los Angeles has a trillion dollar economy; its the 3rd largest GDP in the world after Tokyo & New York. TOKYO NEW YORK CITY LOS ANGELES LONDON PARIS 1 2 3 4 5 SOURCE: BUREAU OF ECONOMIC ANALYSIS, EUROSTAT, TOUKEI $1.89T $1.72T $1.04T $880B $850B MASSIVE LOCAL ECONOMY LA’s wealth of resources has helped turn it into a serious technology center. LOS ANGELES VENTURE CAPITAL FUNDING RAISED IN L.A. & O.C. $6.4B in 2018 $4B $3B $2B $1B $7B SOURCE: PWC MONEYTREE REPORT 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 $6B $5B
  8. 8. 8 VENTURE CAPITAL IN LOS ANGELES @AMPLIFYLA METRO TOTAL VC FUNDS RAISED SINCE 2010 ($B) 166.0 6.3 1.7 43.0 3.6 44.7 1.9 0.5 San Francisco Bay Area Los Angeles San Diego Boston Seattle New York Austin Dallas 4.5Chicago 1.6Denver TOTAL VC INVESTED SINCE 2010 ($B) 277.2 42.2 16.9 61.5 14.9 77.0 10.8 6.8 13.2 9.4 SOURCE: PITCHBOOK 2019 NET OUTSIDE CAPITAL ($B) 111.2 35.9 15.2 18.5 11.2 32.2 8.9 6.3 8.8 7.8 Historically, LA startups had to look outside the city to raise capital. Aside from the Bay Area, LA startups attract more net outside capital than any other U.S. metro. 0.7Miami 0.9Atlanta 1.6Philadelphia 6.7 7.0 7,6 5.8 6.1 5.9 6.1Washington, DC 11.9 4.5 At least $35B has been invested in LA startups from outside the city over the last decade For every dollar under management locally, 7 dollars has been invested in LA startups since 2010
  9. 9. 9 VENTURE CAPITAL IN LOS ANGELES @AMPLIFYLA PRE 2005 20192010 2015 YEAR ESTABLISHED SERIES A+ ($5M - $15M+) SEED
 ($2M-$4.5M) PRE SEED ($250k-$1.5M) INCUBATION MUSE CAPITAL In recent years, however, a growing number of new VCs launching in Los Angeles are beginning to fill that gap across all stages.
  10. 10. 10 LOS ANGELES TECH @AMPLIFYLA 2018 in particular was all about growth rounds! The top-ten VC deals in LA took in over $2.5B last year — double that of 2017. RANK COMPANY 1 2 3 4 5 6 7 8 9 10 $ RAISED $450M $135M $109M $75M $75M $65M $64M $60M $55M $50M LARGEST LA VC DEALS IN 2017 RANK COMPANY 1 2 3 4 5 6 7 8 9 10 $ RAISED $400M $300M $234M $214M $165M $156M $120M $113M LARGEST LA VC DEALS IN 2018 $250M SOURCE: CRUNCHBASE $435M
  11. 11. 11 @AMPLIFYLA LOS ANGELES TECH SHERMAN OAKS GLENDALE PASADENA CENTURY CITYSANTA MONICASANTA MONICA ARTS DISTRICT ARTS DISTRICT DTLA WEST HOLLYWOOD WEST HOLLYWOOD CULVER CITYCULVER CITY WESTWOOD HAWTHORNE As companies have grown, they’ve moved out of what was once “Silicon Beach.” The Los Angeles tech ecosystem has grown to encompass the broader city. VENICE WESTCHESTER SANTA MONICA EL SEGUNDO
  12. 12. 12 LEADING SECTORS IN LA TECH GAMING ECOMMERCE ONLINE MEDIA CONTRIBUTING FACTORS LOCAL LEADERS KEY STAT CONTRIBUTING FACTORS LOCAL LEADERS CONTRIBUTING FACTORS LOCAL LEADERS KEY STAT Film Industry Talent (Storytellers & animators) “Studio-style” investors Large diverse market Manufacturing Industry Access to influencers Financial infrastructure Pacific port city Hollywood/Film Studios Talent (actors, writers, editors) Access to influencers Access to content investors $900M Investors poured over into social media and consumer web startups in LA in 2015 LA & Long Beach are the two largest ports in the United States E3E3 in Los Angeles is the world’s preeminent gaming expo. @AMPLIFYLA KEY STATS Traditionally, sectors like e-commerce, gaming & entertainment have dominated LA tech.
  13. 13. 13 Just as Los Angeles tech companies have broadened geographically, they’ve also moved into new sectors that benefit from LA’s wealth of diversified resources. @AMPLIFYLA LOS ANGELES TECH
  14. 14. 14 LOS ANGELES TECH % OF SEED DEALS BY CATEGORY 3% 4% 8% 8% 24% 29% 24% Consumer Products & Services Media, Entertainment & Gaming Business Intelligence Health & Wellness Fintech Adtech Other SOURCE: CRUNCHBASE @AMPLIFYLA (DEALS BETWEEN $500K-$5M) Seed stage rounds showed broad diversity in sectors and industries funded. 8 16 24 32 Q1'18 Q2'18 Q3'18 Q4'18 11 1210 8 10141613 312 <$1mm $1-2.5mm $2.5-5mm SaaS Marketplace eCommerce Mobile Hardware Other 16 9 11 14 14 32 NOTABLE LA SEED DEALS IN 2018 NUMBER OF SEED DEALS ANNOUNCED SOURCE: CRUNCHBASE SEED DEALS BY SECTOR SOURCE: CRUNCHBASE $65.7M $38.9M $34.9M $24.6M $24.7M $39.4M
  15. 15. 15 EMERGING SECTORS IN LA TECH VIRTUAL & AUGMENTED REALITY E-SPORTS TRANSPORTATION & AEROSPACE TECH CONTRIBUTING FACTORS LOCAL LEADERS KEY STAT CONTRIBUTING FACTORS LOCAL LEADERS CONTRIBUTING FACTORS LOCAL LEADERS KEY STAT Film Industry USC (Institute for creative technology) Access to content investors Talent (Animators, storytellers, game developers) Digital gaming industry Access to influencers Dedicated E-Sports Funds Creative Talent NASA’s JPL Lockheed Martin Boeing Engineering Talent (Caltech, USC, Harvey Mudd) @AMPLIFYLA KEY STATS Emerging sectors like VR & AR, e-sports & aerospace tech benefit from similar resources. $2B Facebook purchased OC based Oculus for $276Mhas been invested in 4th mode transportation upstart Hyperloop One The LA Staples Center (20k+ capacity) consistently hosts sold out League of Legends championships
  16. 16. 16 EMERGING SECTORS IN LA TECH @AMPLIFYLA As consumer services move online, Los Angeles is often “ground zero” for launching new marketplace business models, which use LA as a playbook for growing nationally. NOTABLE LA CONSUMER SERVICES STARTUPS $360M in Funding $300M $415M $70M $50M $6M $10M $17M $7M $80M In the last few years, investors have poured billions into LA based consumer service marketplaces offering everything from dog walking, massages, full-service storage and in-home doctors appointments. CONTRIBUTING FACTORS Large diverse consumer base Access to influencers LA is the largest “sunbelt” market Diversity of service professionals KEY STAT Los Angeles is the most densely populated urban area in the United States. SOURCE: US CENSUS BUREAU 7,000 PEOPLE PER SQ. MILE
  17. 17. 17 EMERGING SECTORS IN LA TECH @AMPLIFYLA Los Angeles is also home to a growing number of logistics technology companies, which benefit from LA’s broad density and manufacturing & shipping base. NOTABLE LA LOGISTICS STARTUPS LA is starting to see a growing number of prominent logistics startups reach maturity — most recently with Next Trucking raising a $100M round. These companies span trucking, shipping, storage & fulfillment, medical logistics and more. CONTRIBUTING FACTORS Large diverse market KEY STAT In 2018, the Port of Los Angeles moved the highest container volume ever moved annually by a Western Hemisphere seaport SOURCE: PORT OF LOS ANGELES 17.5M CONTAINERS MOVED IN 2018 $125M in Funding $56M $10M $7M $16M $5M $300M $5M Manufacturing Industry Financial infrastructure Pacific port city PORTS OF LONG BEACH/LOS ANGELES
  18. 18. 18 WHAT’S AMPLIFY? PORTFOLIO CAPITAL RAISED $250M $500M $750M $1,000M 2012 2013 2014 2015 2016 2017 2018 $1M $12M $32M $90M $250M $500M $1,000M $1B IN 6 YEARS 8-15%$250K-$500k INITIAL CHECK SIZE 10-15 COMPANIES PER YEAR 80 PORTFOLIO COMPANIES $2.5B COMBINED ENTERPRISE VALUE 10 ACQUIRED WE INVEST <1% OF COMPANIES WE MEET AMPLIFY PORTFOLIO Amplify invests in startups at the earliest stages. With over 150 mentors, and an incredible team, we actively provide support, capital and guidance throughout the lifetime of your business. In all, we’ve invested in 80 companies, and have seen 10 exits including to Apple, Google, FanDuel and others. @AMPLIFYLA SELECT PORTFOLIO COMPANIES Oded Noy MANAGING PARTNER Eric Pakravan VICE PRESIDENT Amanda Schutzbank VICE PRESIDENT Paul Bricault MANAGING PARTNER Richard Wolpert VENTURE PARTNER AMPLIFY TEAM Connor Sundberg ANALYST
  19. 19. KEEP UP WITH AMPLIFY 19 @AMPLIFYLA GET OUR MONTHLY UPDATES: amplify.la/join
  20. 20. @AMPLIFYLA 2019 LA TECH SCENE ERIC PAKRAVAN | @EPAKRAVAN

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