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The Los Angeles 
Technology Market
LA ecosystem is heating up 
2 
ADD IMAGE
LA is #3 largest tech ecosystem in the US… 
24% 
14% 
Share of US Early-Stage Startups (%) 
12% 
AngelList startups by region 
4% 4% 3% 2% 2% 2% 
Silicon 
Valley 
New York SoCal Northwest Boston Chicago Austin DC Colorado 
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 3 San Francisco & Bay Area.
…and #1 fastest growing 
Source: AngellList – startup companies by region by month. 
Note: Compound monthly growth rate of new startups by region from Jan 2014 to June 2014 
4 
5.3% 
4.7% 4.6% 4.5% 4.4% 4.1% 4.0% 3.9% 3.8% 
SoCal Northwest Chicago New York DC Boston Silicon 
Valley 
Colorado Austin 
2014 1H Monthly Startup Growth 
AngelList startups by region
Capital flowing to LA: $1.5B+ invested in 
LA in 2013, a 30% CAGR since 2010 
$700 
$920 $1,040 
5 Source: CB Insights – LA Funding Report (July 2014) 
$1,550 
Notes: US VC grew at 7% CAGR from 2010 ($23.7B) to 2013 ($29.2B) via CB Insights. 
$860 
172 
225 
281 
302 
2010 2011 2012 2013 2014 
# Deals 
Invested 
Capital ($M) 
1H 
LA has grown 4X faster than US average
250 companies have raised $1M+ since 2012 
Prominent SoCal companies 
by last round of financing 
2012 2013 2014 YTD 
$50M+ 
$10M+ 
$1M+ 
Sources: CB Insights, Crunchbase
Large valuable companies are built in LA 
7 Source: CB Insights, Yahoo Finance (9/3/14 EOD), TechCrunch
Increasing number of prominent successful exits 
Acquired 
(Facebook) 
IPO IPO 
$8B+ in 2014 so far with more to come 
8 Source: CB Insights, YCharts. 
Acquired 
(Disney) 
Acquired 
(Apple) 
Acquired 
(AOL) 
Acquired 
(Apple) 
Acquired 
(Opera) 
Acquired 
(AOL) 
Acquired 
(Red Hat)
Why tech thrives in LA 
9
LA is built on entrepreneurship 
530 
490 
2011-2013 Entrepreneurs per 100,000 people 
440 
400 
360 360 360 350 
10 Source: Kauffman Index of Entrepreneurial Activity, April 2014 
310 290 
240 240 
200 200 190 
LA 
Miami 
SF 
Houston 
NYC 
Atlanta 
Phoenix 
Riverside 
Dallas 
Seattle 
DC 
Boston 
Chicago 
Phelphia 
Detroit
Early successes have seeded the 
ecosystem’s new era growth 
11 
LA Tech 1.0 LA Tech 2.0 
Seasoned entrepreneurs and recycled 
capital drive new ventures
LA graduates the most engineers in the US… 
7,561 
6,811 
LA 
Boston 
Bay Area 
Sources: US News & World Report, Accreditation Board for Engineering and Technology (ABET); 
Includes graduate universities within 150 miles 12 of metropolitan area 
10,945 
9,862 
New York 
Engineering Graduate Enrollment
…from some of the most prominent schools 
Sources: US News & World Report, Accreditation Board for Engineering and Technology (ABET); 
Includes graduate universities within 150 miles 13 of metropolitan area
LA has a strong base of local investors… 
14 Source: CB Insights
…who are actively writing LA checks 
Most Active VC Investors in LA 
Rank 
Investor 
1 
Upfront 
Ventures 
2 
Mucker 
Capital 
3 
500 
Startups 
4 
Greycro= 
Partners 
5 
SV 
Angel 
6 
Siemer 
Ventures 
7 
Rincon 
Venture 
Partners 
7 
Double 
M 
Partners 
9 
Baroda 
Ventures 
10 
First 
Round 
Capital 
10 
Google 
Ventures 
15 
LA-based Venture Firm 
Source: CB Insights – LA Funding Report (July 2014)
Supportive incubators, accelerators, and 
community spaces foster early stage growth 
16 Source: RepresentLA
Living in LA is more affordable compared to 
other tech centers 
LA 
SF 
NYC 
Overall 
Index 
127 
152 
148 
Groceries 
106 
119 
149 
Housing 
176 
243 
166 
ULliLes 
112 
90 
131 
TransportaLon 
106 
109 
128 
Healthcare 
110 
111 
127 
Goods 
& 
Services 
103 
119 
144 
Equivalent 
Standard 
of 
Living 
$50,000 
$59,807 
$58,197 
vs 
Los 
Angeles 
20% 
16% 
Source: Cost of Living from Council for Community and Economic 17 Research (via Areavibes)
And, of course, the weather doesn’t suck 
Source: Kelly Norton, Kellegous.com “The Pleasant Places to Live” graphic & analysis using NOAA data 
18 
Pleasant days: Days with (1) mean temperature between 55° F and 75° F, (2) minimum temperature above 
45° F, (3) maximum temperature below 85° F, and (4) no significant precipitation or snow depth
But it’s not about the 
“next” Silicon Valley 
19 Source: Slate.com
Tech has moved beyond servers & switches 
– we are shifting to the application layer 
20 
Application Layer 
Scalable computing & storage 
Open source software 
Telecommunications 
Personal computing
We’ve seen this before – every technological 
revolution goes through the same cycle 
The Industrial Revolution 
Age of Steam & Railways 
Age of Steel, Electricity, & 
Heavy Engineering 
Age of Oil, Automobiles, & 
Mass Production 
Age of Information and 
Telecommunications 
21 
1771 
1829 
1875 
1908 
1971 
1829 
1873 
1920 
1974 
? 
1797 
1847 
1893 
1929 
2001 
Application 
Layer 
• Manufacturing industry 
• Open trade 
• Standardizing time 
• Catalog sales 
• Economies of scale 
• Urban development 
• Interventionism 
• Interstate highways 
• IMF, World Bank, BIS 
Infrastructure 
Layer 
TODAY 
Source: Chart adapted from Carlota Perez’s “Technological Revolutions and Financial Capital: The Dynamics 
of Bubbles and Golden Ages” who describes the two phases as “Installation” & “Deployment” periods
The focus is increasingly on what we 
actually DO online: the 3 C’s 
22 
Application Layer 
Content Commerce Communication 
Infrastructure Layer 
This is what LA does best
Content is increasingly consumed online… 
Avg Time / Day with Major Media by US Adults 
(hh:mm) 
Total 10:46 11:18 11:49 12:03 12:14 
Other 
Radio 
TV 
23 Source: eMarketer, April 2014. Note: Adults 18+, time spent with each medium (regardless of multitasking). 
Excludes time spent watching digital video via console, connected TV or OTT device. 
Content 
2010 2011 2012 2013 2014 
Digital 
3:11 
4:33 5:14 
3:49 
5:46 
Print 
% of Time 30% 34% 39% 43% 47%
US adults watch 5+ hours of video per day. 
In the future, video will be an online medium. 
Avg. Time / Day Consuming Video by US Adults 
(hh:mm) 
Total 4:30 4:49 5:07 5:15 5:23 
0:06 
0:03 0:08 0:22 0:33 
0:12 0:21 0:22 0:22 
4:24 4:34 4:38 4:31 4:28 
2010 2011 2012 2013 2014 
Mobile 
Online 
TV 
24 Source: eMarketer, April 2014. Note: Adults 18+, time spent with each medium (regardless of multitasking). 
Excludes time spent watching digital video via console, connected TV or OTT device. 
Content
LA is the creative capital of the US, 
specializing in video content 
1 in 7 people in LA are employed in a creative field 
#1 metro area for Art, Design, & Media employment 
$140B+ annual economic impact from creative industry 
25 
Sources: 2013 Otis College of Art and Design; Bureau of Labor Statistics 2012 
Content
Video & content startups are succeeding in LA 
26 
And many more… 
#1 producer & distributor 
of online video 
6.5B+ monthly views 
450M+ subscribers 
Leading artist 
social network 
300M pieces of art 
30M+ members 
Largest Latino online 
video network 
400M+ monthly views 
40M+ subscribers 
Sources: Maker, DeviantArt, Mitu 
Content
Commerce also shifting online: 
14% CAGR vs. 3.5% for offline US retail 
$225 
$263 
$304 
$347 
$393 
$440 
$492 
5.3% 
5.8% 
6.4% 
7.0% 
7.6% 
8.2% 
8.9% 
10.0% 
9.0% 
8.0% 
7.0% 
6.0% 
5.0% 
4.0% 
3.0% 
2.0% 
1.0% 
0.0% 
$600 
$500 
$400 
eCommerce 
% of total 
retail sales 
$300 
$200 
US Retail 
eCommerce 
Sales ($B) 
$100 
$- 
2012 2013 2014 2015 2016 2017 2018 
27 Source: eMarketer April 2014. Note: includes products or services ordered using the internet, regardless of 
the method of payment or fulfillment, excludes travel & event tickets. 
Commerce
LA is the retail & trade capital of the US 
#1 metro area for Retail & Trade sector employment 
$400B+: imports / exports through LA ports in 2012, 
a new record for the US 
36% of US apparel manufacturing jobs are in LA 
Sources: Kyser Center for Economic Research International Trade Outlook – The Southern California Region 
2013-2014. Bureau of Labor Statistics 2012. CIT & CFA Fashion Industry Profile 28 and 2014 Outlook 
Commerce
LA commerce startups have taken the lead 
Subscription-based 
fashion retail 
$400M sales 
projected for 2014 
And many more… 
29 Sources: WSJ 8/26/14 on Honest Co, Re/Code 8/28 on JustFab, TrueCar S-1 
Car buying & 
selling platform 
7,000+ dealers 
1.1M+ car sales 
Eco-friendly baby 
& home products 
$150M+ revenue 
projected for 2014 
Commerce
Communication 
Three of the top social apps located in LA 
Photo messaging app 
700M+ snaps / day 
20%+ MoM growth 
30 Sources: The Economic Times 8/1/14 (Snapchat), Sean Rad interview at 2014 Upfront Summit (Tinder), 
Mashable 3/11/14 (Whisper) 
Mobile dating app 
10M+ DAU 
750M swipes / day 
Anonymous social 
network 
3.5B page views / mo
Further, LA is tackling the hard technology 
problems to lead the next revolution 
31 
Space VR / AR Power
Recap: the future is sunny in LA 
Fastest growing tech ecosystem 
Well-positioned for the three Cs: 
Content, Commerce, Communications 
32 
Come join us! 
Talent + Capital + Lifestyle 
Big fundings, big exits, & big ambitions for 
the future: space, energy, VR, & more
The Los Angeles 
Technology Market

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There is Something Going on in the LA Tech Market by Upfront Ventures

  • 1. The Los Angeles Technology Market
  • 2. LA ecosystem is heating up 2 ADD IMAGE
  • 3. LA is #3 largest tech ecosystem in the US… 24% 14% Share of US Early-Stage Startups (%) 12% AngelList startups by region 4% 4% 3% 2% 2% 2% Silicon Valley New York SoCal Northwest Boston Chicago Austin DC Colorado 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 3 San Francisco & Bay Area.
  • 4. …and #1 fastest growing Source: AngellList – startup companies by region by month. Note: Compound monthly growth rate of new startups by region from Jan 2014 to June 2014 4 5.3% 4.7% 4.6% 4.5% 4.4% 4.1% 4.0% 3.9% 3.8% SoCal Northwest Chicago New York DC Boston Silicon Valley Colorado Austin 2014 1H Monthly Startup Growth AngelList startups by region
  • 5. Capital flowing to LA: $1.5B+ invested in LA in 2013, a 30% CAGR since 2010 $700 $920 $1,040 5 Source: CB Insights – LA Funding Report (July 2014) $1,550 Notes: US VC grew at 7% CAGR from 2010 ($23.7B) to 2013 ($29.2B) via CB Insights. $860 172 225 281 302 2010 2011 2012 2013 2014 # Deals Invested Capital ($M) 1H LA has grown 4X faster than US average
  • 6. 250 companies have raised $1M+ since 2012 Prominent SoCal companies by last round of financing 2012 2013 2014 YTD $50M+ $10M+ $1M+ Sources: CB Insights, Crunchbase
  • 7. Large valuable companies are built in LA 7 Source: CB Insights, Yahoo Finance (9/3/14 EOD), TechCrunch
  • 8. Increasing number of prominent successful exits Acquired (Facebook) IPO IPO $8B+ in 2014 so far with more to come 8 Source: CB Insights, YCharts. Acquired (Disney) Acquired (Apple) Acquired (AOL) Acquired (Apple) Acquired (Opera) Acquired (AOL) Acquired (Red Hat)
  • 10. LA is built on entrepreneurship 530 490 2011-2013 Entrepreneurs per 100,000 people 440 400 360 360 360 350 10 Source: Kauffman Index of Entrepreneurial Activity, April 2014 310 290 240 240 200 200 190 LA Miami SF Houston NYC Atlanta Phoenix Riverside Dallas Seattle DC Boston Chicago Phelphia Detroit
  • 11. Early successes have seeded the ecosystem’s new era growth 11 LA Tech 1.0 LA Tech 2.0 Seasoned entrepreneurs and recycled capital drive new ventures
  • 12. LA graduates the most engineers in the US… 7,561 6,811 LA Boston Bay Area Sources: US News & World Report, Accreditation Board for Engineering and Technology (ABET); Includes graduate universities within 150 miles 12 of metropolitan area 10,945 9,862 New York Engineering Graduate Enrollment
  • 13. …from some of the most prominent schools Sources: US News & World Report, Accreditation Board for Engineering and Technology (ABET); Includes graduate universities within 150 miles 13 of metropolitan area
  • 14. LA has a strong base of local investors… 14 Source: CB Insights
  • 15. …who are actively writing LA checks Most Active VC Investors in LA Rank Investor 1 Upfront Ventures 2 Mucker Capital 3 500 Startups 4 Greycro= Partners 5 SV Angel 6 Siemer Ventures 7 Rincon Venture Partners 7 Double M Partners 9 Baroda Ventures 10 First Round Capital 10 Google Ventures 15 LA-based Venture Firm Source: CB Insights – LA Funding Report (July 2014)
  • 16. Supportive incubators, accelerators, and community spaces foster early stage growth 16 Source: RepresentLA
  • 17. Living in LA is more affordable compared to other tech centers LA SF NYC Overall Index 127 152 148 Groceries 106 119 149 Housing 176 243 166 ULliLes 112 90 131 TransportaLon 106 109 128 Healthcare 110 111 127 Goods & Services 103 119 144 Equivalent Standard of Living $50,000 $59,807 $58,197 vs Los Angeles 20% 16% Source: Cost of Living from Council for Community and Economic 17 Research (via Areavibes)
  • 18. And, of course, the weather doesn’t suck Source: Kelly Norton, Kellegous.com “The Pleasant Places to Live” graphic & analysis using NOAA data 18 Pleasant days: Days with (1) mean temperature between 55° F and 75° F, (2) minimum temperature above 45° F, (3) maximum temperature below 85° F, and (4) no significant precipitation or snow depth
  • 19. But it’s not about the “next” Silicon Valley 19 Source: Slate.com
  • 20. Tech has moved beyond servers & switches – we are shifting to the application layer 20 Application Layer Scalable computing & storage Open source software Telecommunications Personal computing
  • 21. We’ve seen this before – every technological revolution goes through the same cycle The Industrial Revolution Age of Steam & Railways Age of Steel, Electricity, & Heavy Engineering Age of Oil, Automobiles, & Mass Production Age of Information and Telecommunications 21 1771 1829 1875 1908 1971 1829 1873 1920 1974 ? 1797 1847 1893 1929 2001 Application Layer • Manufacturing industry • Open trade • Standardizing time • Catalog sales • Economies of scale • Urban development • Interventionism • Interstate highways • IMF, World Bank, BIS Infrastructure Layer TODAY Source: Chart adapted from Carlota Perez’s “Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages” who describes the two phases as “Installation” & “Deployment” periods
  • 22. The focus is increasingly on what we actually DO online: the 3 C’s 22 Application Layer Content Commerce Communication Infrastructure Layer This is what LA does best
  • 23. Content is increasingly consumed online… Avg Time / Day with Major Media by US Adults (hh:mm) Total 10:46 11:18 11:49 12:03 12:14 Other Radio TV 23 Source: eMarketer, April 2014. Note: Adults 18+, time spent with each medium (regardless of multitasking). Excludes time spent watching digital video via console, connected TV or OTT device. Content 2010 2011 2012 2013 2014 Digital 3:11 4:33 5:14 3:49 5:46 Print % of Time 30% 34% 39% 43% 47%
  • 24. US adults watch 5+ hours of video per day. In the future, video will be an online medium. Avg. Time / Day Consuming Video by US Adults (hh:mm) Total 4:30 4:49 5:07 5:15 5:23 0:06 0:03 0:08 0:22 0:33 0:12 0:21 0:22 0:22 4:24 4:34 4:38 4:31 4:28 2010 2011 2012 2013 2014 Mobile Online TV 24 Source: eMarketer, April 2014. Note: Adults 18+, time spent with each medium (regardless of multitasking). Excludes time spent watching digital video via console, connected TV or OTT device. Content
  • 25. LA is the creative capital of the US, specializing in video content 1 in 7 people in LA are employed in a creative field #1 metro area for Art, Design, & Media employment $140B+ annual economic impact from creative industry 25 Sources: 2013 Otis College of Art and Design; Bureau of Labor Statistics 2012 Content
  • 26. Video & content startups are succeeding in LA 26 And many more… #1 producer & distributor of online video 6.5B+ monthly views 450M+ subscribers Leading artist social network 300M pieces of art 30M+ members Largest Latino online video network 400M+ monthly views 40M+ subscribers Sources: Maker, DeviantArt, Mitu Content
  • 27. Commerce also shifting online: 14% CAGR vs. 3.5% for offline US retail $225 $263 $304 $347 $393 $440 $492 5.3% 5.8% 6.4% 7.0% 7.6% 8.2% 8.9% 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% $600 $500 $400 eCommerce % of total retail sales $300 $200 US Retail eCommerce Sales ($B) $100 $- 2012 2013 2014 2015 2016 2017 2018 27 Source: eMarketer April 2014. Note: includes products or services ordered using the internet, regardless of the method of payment or fulfillment, excludes travel & event tickets. Commerce
  • 28. LA is the retail & trade capital of the US #1 metro area for Retail & Trade sector employment $400B+: imports / exports through LA ports in 2012, a new record for the US 36% of US apparel manufacturing jobs are in LA Sources: Kyser Center for Economic Research International Trade Outlook – The Southern California Region 2013-2014. Bureau of Labor Statistics 2012. CIT & CFA Fashion Industry Profile 28 and 2014 Outlook Commerce
  • 29. LA commerce startups have taken the lead Subscription-based fashion retail $400M sales projected for 2014 And many more… 29 Sources: WSJ 8/26/14 on Honest Co, Re/Code 8/28 on JustFab, TrueCar S-1 Car buying & selling platform 7,000+ dealers 1.1M+ car sales Eco-friendly baby & home products $150M+ revenue projected for 2014 Commerce
  • 30. Communication Three of the top social apps located in LA Photo messaging app 700M+ snaps / day 20%+ MoM growth 30 Sources: The Economic Times 8/1/14 (Snapchat), Sean Rad interview at 2014 Upfront Summit (Tinder), Mashable 3/11/14 (Whisper) Mobile dating app 10M+ DAU 750M swipes / day Anonymous social network 3.5B page views / mo
  • 31. Further, LA is tackling the hard technology problems to lead the next revolution 31 Space VR / AR Power
  • 32. Recap: the future is sunny in LA Fastest growing tech ecosystem Well-positioned for the three Cs: Content, Commerce, Communications 32 Come join us! Talent + Capital + Lifestyle Big fundings, big exits, & big ambitions for the future: space, energy, VR, & more
  • 33. The Los Angeles Technology Market