LA Tech & Venture Landscape
Mark Suster

2 Silicon Valley dominated the
infrastructure phase of the Internet. In effect, they built the roads, bridges and airports required for trade. Infrastructure Servers, Switches, Routers, Databases, Browsers, Search

3 The “Application Layer” (Three
C’s) of the Internet favors cities like LA: Content, Commerce & Communications Personal computing Telecommunications Open source software Scalable computing & storage Application Layer Content Commerce Communication Infrastructure

4 The Internet is largely
becoming a video platform. Content Commerce Communication <30 minutes / day 5.3 hours / day Past: Text Present: Video & Games Future: Augmented & Virtual Reality

5 Many of the best
video startups in the country are being built in Los Angeles. • Writers • Directors • Actors • Special effects • Sound • Stages • Costumes • Make-up • Talent • Creator tools VerticalBroad Content Commerce Communication

Content development companies are becoming
increasingly valuable 6 Content has become incredibly valuable as distributors compete for exclusive media. • OTT • Mobile Video • Web Content Distribution Content Commerce Communication

43M 31M 100M 13M 55M
7 LA has become a powerhouse in games. Several hundred millionaires will help create the next wave of innovation. $1.6B 2015 revenues $Bn++ Valuation when acquired by Tencent Monthly Active Players Viewers of 2016 Finals Source: Forbes, Fortune Content Commerce Communication

8 Virtual Reality VR/AR are
in the first inning but LA will be a leading player in what will be a dominant computing platform in 5-10 years. The same skills that led video startups to LA are the basis for VR successes Content Commerce Communication

9 LA knows how to
create consumer brands and has the celebrities to promote them. Historic Brands Internet Brands Content Commerce Communication

Past Generation X 1.4B 10
LA owns how the next generation of people communicate and meet with each other. CommerceContent Millennials & Generation Z 410M Snaps per Day 71% of Users are < 25 yo 150M Daily Active Users 83% of Users are < 34 yo 35min per Day In- App by DAUs Swipes per Day Source: “Snapchat’s Daily Active User Count has Surpassed a New Mile Stone” Kia Kokalitcheva, Fortune 9/26/16 Source: “How Snapchat Demographics are Surprising Shifting in 2016” MediaKix Source: Tinder Source: “Tinder Forecasts Rise in Paid Subscribers, Ad Revenue” AdAge, 6/3/2016 Source: “Research says 30% of Tinder Users are Married” Stuart Dredge, Business Insider, 5/7/15 Communication

11 The “Snapchat Effect” of
a public Internet company in Los Angeles will be enormous. Attracting talent to Los Angeles M&A and Biz Dev Many millionaire angels Future founders post IPO CommerceContent Communication

12
Venture in LA

13 LA is #3 largest
tech ecosystem in the US… Bay Area New York Greater Northwest Boston Chicago Austin DC Colorado 12% 2%2%2%3%4%4% 14% 24% Los Angeles Source: AngelList – startup companies by region as of July 31, 2014. Note: SoCal includes LA (69%), San Diego (15%) , Orange County (9%), and other areas (6%), Northwest includes Oregon & Washington. Silicon Valley includes San Francisco & Bay Area.

14 …and is among the
fastest growing. Greater Northwest Chicago New York DC Boston Bay Area Colorado Austin 5.3% 3.8%3.9%4%4.1% 4.4%4.5%4.6%4.7% Los Angeles Source: AngellList – startup companies by region by month. Note: Compound monthly growth rate of new startups by region from Jan 2014 to June 2014

15 LA’s venture community has
never been stronger and is growing rapidly.

[ 16 LA has done
great at funding early-stage innovation. Increasingly we should also develop some late-stage local funding sources. Source: CBInsights Seed Series A Series B Late Stage [ ] ]Los Angeles Funds Bay Area Funds

17
LA advantages

18 Greater LA has more
top 25 engineering schools than anywhere else in the country. Source: US News & World Report, Accreditation Board for Engineering and Technology (ABET); Includes graduate universities within 150 miles of metropolitan area

19 Greater Boston Bay Area
New York 10,945 6,811 7,561 9,862 Los Angeles Sources: US News & World Report, Accreditation Board for Engineering and Technology (ABET); Includes graduate universities within 150 miles of metropolitan area And Greater LA graduates more engineers than anywhere else in the country. Engineering Graduate Enrollment

20 LA has an affordability
advantage over SF or NYC… Source: Council for Community and Economic Research Cost of Living Index (via bankrate.com Cost of Living Calculator) Los Angeles San Francisco New York $162K $126K $100K equivalent income equivalent income

21 …and a clear weather
and lifestyle bonus. Pleasant days: Days with (1) mean temperature between 55° F and 75° F, (2) minimumtemperature above 45° F, (3) maximum temperature below 85° F, and (4) no significant precipitation or snow depth Source: Kelly Norton, Kellegous.com “The Pleasant Places to Live” graphic & analysis using NOAA data

22 LA has infrastructure advantages
in trade and population. of top 10 major ports in the US 3 $460B import / exports per year most populous city #2 18.7M Greater LA population Trade Population Source: Kyser Center for Economic Research International Trade Outlook – Los Angeles County 2016-2017, United States Census Bureau: Annual Estimates of the Resident Population for Combined Statistical Area, Estimate as of July 1, 2015

23 LA has always been
an entrepreneurial city Greater Miami SF Houston NYC Atlanta Phoenix Riverside Dallas Seattle DC Boston Chicago Philadelphia Detroit 530 190200200 240240 290 310 350360360360 400 440 490 LosAngeles Source: Kauffman Index of Entrepreneurial Activity, April 2014 Entrepreneurs per 100,000 People

24 Fast growing tech ecosystem
The future is sunny in LA. Growing venture capital community Content, Commerce, Communications Talent + Lifestyle

Thank you