LA Tech & Venture Scene | Amplify.LA

A comprehensive overview of the Los Angeles technology and venture landscape in 2016. This is a report by Amplify.LA, LA's leading startup accelerator based in Venice, CA.

Transcript

1. AMPLIFY LA TECH SCENE @AMPLIFYLA
2. 2 VENTURE CAPITAL LANDSCAPE SOURCE: COMPASS GLOBAL STARTUP ECOSYSTEM RANKING 2015 RANK GLOBAL STARTUP ECOSYSTEM 1 2 3 4 5 6 7 8 Silicon Valley New York City Los Angeles Boston Tel Aviv London Chicago Seattle 9 Berlin 10 Singapore '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 16 18 18 21 19 17 17 23 23 28 37 49 7 7 7 7 7 6 7 8 9 10 14 15 4 3 3 4 4 5 6 6 Seed Series A Series B $40M $30M $20M $10M $50M MEDIAN PRE-MONEY VALUATIONS BY SERIES '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 $80B $60B $40B $20B $100B U.S. VC ACTIVITY BY YEAR 80K 60K 40K 20K 10K ($) (# DEALS) @AMPLIFYLA SOURCE: PITCHBOOK SOURCE: PITCHBOOK
3. 3 LOS ANGELES “I'd definitely be short New York and long LA” — Peter Thiel, Managing Partner, Founders Fund @AMPLIFYLA
4. 4 LOS ANGELES IT’S NO LONGER A DEBATE, LOS ANGELES HAS EMERGED AS A MAJOR TECHNOLOGY HUB. LOS ANGELES VENTURE CAPITAL 2010 2011 2012 2013 2014 2015 FUNDING RAISED IN L.A. & O.C. $4.8 BILLION COMPANIES FUNDED (2014) 250 EXITS (2014) 80 COMPANIES CALLING LOS ANGELES HOME L.A. GRADUATES MORE ENGINEERS THAN ANY OTHER METRO IN THE UNITED STATES.* $4B $3B $2B $1B *ACCREDITATION BOARD FOR ENGINEERING & TECHNOLOGY Acquired by Opera ($350M) Acquired by Apple ($3B) Acquired by AT&T ($300M) Acquired by Alliance ($2.3B) $5B @AMPLIFYLA SOURCE: PITCHBOOK
5. 5 LOS ANGELES INPUTS OUTPUTS CAPITAL THE DEMISE OF MYSPACE LED TO A PROLIFERATION OF TECH ACTIVITY IN LA THE MYSPACE EFFECT STARTUPS @AMPLIFYLA
6. 6 LOS ANGELES LA TECH IS ALREADY MAKING IMPACTS OUTSIDE OF THE TECH SPHERE WESTSIDE OFFICE RENTS PERCENT CHANGE SINCE 2011 RENT BY SQUARE FOOT THE SNAPCHAT EFFECT SOURCE: AVISON YOUNG 0% 20% 40% 60% 80% 100% 120% Venice M arina D el Rey Culver City Playa Vista Santa M onica Brentw ood Venice Marina Del Rey Culver City Playa Vista Santa Monica Brent- wood 2015 $6.35 $3.59 $3.45 $3.98 $4.86 $4.01 2014 $6.15 $3.20 $3.04 $3.39 $4.33 $3.53 2013 $5.65 $2.94 $2.95 $3.31 $4.24 $3.20 2012 $3.68 $2.59 $2.80 $3.07 $4.42 $3.15 2011 $3.12 $2.60 $2.61 $3.03 $3.79 $3.19 @AMPLIFYLA
7. 7 VENTURE CAPITAL IN LOS ANGELES ACCELERATORS SEED SERIES A TRADITIONAL ACCELERATORS CORPORATE ACCELERATORS SEED FUNDS MICRO VCS SERIES A FUNDS CORPORATE & FAMILY/EVERGREEN FUNDS @AMPLIFYLA
8. 8 A HISTORY OF LA TECH PRE-BUBBLE ERA POST-BUBBLE ERA NOW (RESURGENCE) - 2000 2000 - 2008 2008 - @AMPLIFYLA
9. 9 WHY LA? 1. LARGE MARKET Quick access to early users/customers — There are 17.9 million residents in the five-county area, and nearly 10 million in Los Angeles County 2. LARGE, WELL-TRAINED WORKFORCE & A MAJOR CENTER FOR HIGHER EDUCATION Access to talent — 8.8 million person workforce and 121 campuses of higher education 3. EXCELLENT ACCESS TO NATIONAL AND INTERNATIONAL MARKETS The ports of Los Angeles and Long Beach are numbers one and two in the nation in terms of container traffic handled. In 2011, two-way trade flows through the Los Angeles Customs District totaled $387 billion 4. DIVERSIFIED ECONOMIC BASE Most people think of LA as the “three-legged” economy – aerospace, movies, and tourism. In reality there are 14 significant industry clusters 6. A MAJOR FORCE IN APPAREL DESIGN AND MANUFACTURING LA is #1 in the nation in apparel manufacturing employment. Over 88,000 people work in apparel design, manufacturing and wholesaling 5. A LEADER IN TECHNOLOGY & ENGINEERING DESIGN Nearly 33,300 people work in computer systems design and software publishing activities. Four of the top ten design firms in the U.S. are located in Los Angeles County. These are supported by 9 engineering schools 7. A LEADING DESIGN CENTER In addition to apparel design, Los Angeles is also a center for the design of autos, furniture and home furnishings items, and toys 8. A MAJOR FORCE IN THE ENTERTAINMENT INDUSTRY The motion picture/TV production industry employs over 159,900 people, and generates receipts of $55.9 billion 9. A TRANSPORTATION LEADER LA is famous for its traffic so it’s no surprise that LA is a leader in “intelligent highways” technology and more 10. THE WEATHER AND GEOGRAPHY 329 days of sunshine Source: Los Angeles County Economic Development Corporation @AMPLIFYLA
10. 10 LEADING LA SECTORS IN TECH GAMING ECOMMERCE ONLINE MEDIA CONTRIBUTING FACTORS LOCAL LEADERS KEY STATS CONTRIBUTING FACTORS LOCAL LEADERS KEY STATS CONTRIBUTING FACTORS LOCAL LEADERS KEY STATS Activision Riot Games Scopely Social Gaming Network The Honest Company Dollar Shave Club JustFab Club W Maker Studios Fullscreen Hulu Snapchat 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 largest two ports in the United States E3 E3 in Los Angeles is the world’s preeminent gaming expo. @AMPLIFYLA
11. 11 EMERGING LA SECTORS IN TECH VIRTUAL REALITY TRANSPORTATION CONTRIBUTING FACTORS LOCAL LEADERS KEY STATS Oculus Survios WEVR CONTRIBUTING FACTORS LOCAL LEADERS KEY STATS Faraday Future SpaceX Hyperloop Technologies Film industry USC Institute for Creative Technologies Access to content investors NASA’s JPL Lockheed Martin Boeing $2B Facebook purchased OC based Oculus for $37M has been invested in Elon Musk affiliated 4th mode transportation upstart Hyperloop Technologies @AMPLIFYLA
12. 12 VIRTUAL REALITY SOURCE: PITCHBOOK RANK COMPANY 1 2 3 4 5 6 7 8 Oculus Magic Leap LENSAR** Jaunt Blippar Vuforia Matterport Avegant 9 NextVR 10 Playful % OF VR DEALS BY CATEGORY Q1'12 Q3'12 Q1'13 Q3'13 Q1'14 Q3'14 Q1'15 Q3'15 $200M $150M $100M $50M $250M AR/VR INVESTMENT ACTIVITY* 40 30 20 10 50 ($) (# DEALS) $ RAISED $2.1B* $1.2B $191.1M $101.3M $70.1M $65M $57.7M $37M $36M $33M *EXCLUDING MAGIC LEAP 2% 6% 18% 19% 27% 28% Commercial & Industrial Infrastructure & Tools Content Hardware Discovery & Distribution Social SOURCE: CB INSIGHTS @AMPLIFYLA
13. 13 WHAT’S AMPLIFY? PORTFOLIO CAPITAL RAISED $75M $150M $225M $300M 2012 2013 2014 2015 2016 $1M $12M $32M $90M $250M $250M IN 4 YEARS 5-15% $50K-$250k INITIAL CHECK SIZE SELECT PORTFOLIO COMPANIES 10-15 COMPANIES PER YEAR 52 PORTFOLIO COMPANIES 6 SHUT DOWN 6 ACQUIRED WE ACCEPT <1% OF APPLICATIONS AMPLIFY PORTFOLIO Oded Noy MANAGING DIRECTOR Kris Bjornerud EXECUTIVE DIRECTOR Eric Pakravan SENIOR ASSOCIATE Paul Bricault MANAGING DIRECTOR Richard Wolpert VENTURE PARTNER AMPLIFY TEAM Amplify is a hands-on startup accelerator and campus in Los Angeles. With over 150 active mentors, a flexible curriculum and incredible team, we continue to find unique ways to leverage our network in both sourcing opportunities and supporting our portfolio. @AMPLIFYLA
14. 14 WE’VE REDEFINED THE ACCELERATOR TRADITIONAL ACCELERATORS AMPLIFY (CLASSES & COHORTS) (SET ECONOMICS) (DEMO DAYS) (STATIC CURRICULUM) (FIXED PROGRAM LENGTH) ROLLING ADMISSIONS FLEXIBLE ECONOMICS ON-GOING INVESTOR SUPPORT DYNAMIC CURRICULUM OPEN PROGRAM LENGTH THE AMPLIFY MODEL IS GETTING RECOGNITION RANKED AS ONE OF THE TOP TEN ACCELERATORS IN THE US IN 2015 @AMPLIFYLA
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16. AMPLIFY LA TECH SCENE @AMPLIFYLA