Close-up on North American Tech Hub: 2nd California Dark Horse, Los Angeles

On February 2, 2021 Intralink interviewed our Chief Executive Officer, David Whelan, read below to see what he said.

Not many people think of Los Angeles from the keyword innovation. Adjacent to Santa Barbara and Orange County, Los Angeles (LA), the heart of Los Angeles County, spans a vast area of ​​10,000 square kilometers, and is often hidden behind Silicon Valley, also in California.

However, the region has many advantages that contribute to its growth as an innovation hub. Its large market size means that startups can build sustainable businesses in any market and leverage the strengths of other sectors. Also, academic and research strengths are beginning to be converted into more and more VC funding, attracting many talented people from Silicon Valley.

Interviews with 3 LA Ecosystem Specialists

This time, Chris Miller of our LA office talked directly to three key players who are active in the LA innovation scene about their appeal. Below, we will summarize the strengths of Los Angeles as points and clarify its potential as a tech hub in an interview format.

Jim Cooper, CTO @ Braid Theory: Accelerator incubator specializing in Blue Economy, BlueTec, Life Sciences, Energy Water, Clean Tech, Ag Tech, and Aerospace Companies. Jim is advising a VC-backed early-stage innovative tech company to incorporate Fun into the Fund.

Minnie Ingersoll, Partner @ TenOneTen: VC that actively invests in excellent teams. Minnie has previously served as COO of Shift, an online marketplace that provides a better user experience for buying and selling used cars.

Dave Whelan, CEO @ Bioscience LA: The company's first permanent CEO, an innovation catalyst behind LA's life sciences ecosystem. Dave is a wealthy strategic and business development executive with 20 years of experience in LA, building businesses in the areas of tech, healthcare and wellness. He is currently passionate about growing a vibrant ecosystem that creates new opportunities for all stakeholders.

1. 1. LA is, the market scale is 1 and has a advantage of th

Minnie : "As an investor, I'm focusing on products, teams, and markets. With a $ 1 trillion economy in LA that is said to outpace the Mexican market, companies in the city are early on in the market. I have the opportunity to prove my aptitude. "

Jim : "California's 45% economy means that market opportunities aren't limited to specific sectors here, and startups are spread across almost every sector."

Dave : "Medical innovators in Southern California have access to almost all of the leading organizations engaged in clinical trials and medical research. That is, LA's population and its diversity make LA ideal for medical innovation. It is. "

2. still early stage ecosystem but it is , evolved and continues

Minnie : "Southern California has more PhDs than any other region, UCLA has the most startups, California Institute of Technology has the most patents, and majors such as Apple, Google, and Facebook. Tech companies have a prominent presence and underpin the local ecosystem. Ten years ago, Sand Hill Road (SV's many VCs) investors themselves He would have advised his portfolio companies to move to the Bay Area, but now many funds want their portfolio companies to stay in LA and move their partners to LA. "

Dave : "Funding for life sciences was previously very limited, but in December 2020Westlake Village BioPartnersHas set up two funds totaling $ 500 million. Furthermore, it is the largest VC in LA.Upfront VenturesAlso, after assigning a partner specializing in life scienceVida Ventures of BostonInvestors such as LA are also choosing LA as their second base. It is also supported by the LA County Government through incubators, workforce development programs, bioscience investment funds, and is originally a British company.HeadspaceLA's life sciences ecosystem has all the elements to grow and stay a good company, including (Online Healthcare) moving its headquarters to LA during its growth phase. "

3. LA , the foundation of a wide range of sectors , also has strengths in specific areas

Jim : "LA is the largest market for advanced manufacturing, and with the two largest ports for inbound cargo in the United States, it has a huge infrastructure and transportation market."

Minnie : "Especially strong in logistics (because it has the largest port and manufacturing industry in the country), games, media, e-commerce, space tech and robotics, and because of its unique strength in consumer branding, consumers Also suitable for tech. "

Dave : "LA, which occupies a leading position in aviation / space tech, apparel and chemical manufacturing, is a bio-manufacturing that affects not only pharmaceuticals but also agri-food tech, industrial biotech and fashion. Is also growing. "

4. industry multi-of uniformity has led to new business opportunities beyond the sector

Dave : “Currently, more and more companies are doing business across healthcare, technology and user experience, for example.GoodRx(A telemedicine app focused on drug price reductions) is working between digital health and insurance by providing consumers with value and developers with better data on prescription use. Digital health companies are also becoming increasingly involved in the major IoT applications of connected cars and smart homes. And many of the companies in these three key IoT areas are based in LA. "

Jim : "One example is an antifreeze product development company dedicated to vaccine transportation that we have partnered with in the past. In essence, it is an infrastructure company that is based on materials science and specializes in healthcare. LA Unlike tech hubs, which focus on a single sector, we have a sector-specific market and ecosystem that can help companies innovate across industries. "

Dave : “Population diversity is another strength. A diverse workforce leads to more innovative solutions, better ability to serve our communities.”

5. Los Angeles metropolitan area is a wide range because it is spread, approach the flame although correct, is also ready unique advantage

Jim : "LA's metropolitan areas are actually a complex of multiple ecosystems, each with its own network effect and agglomeration economy, so which sub-ecosystem is in the industry of interest to each company. We need to evaluate what is the strongest. We actually focus on areas between large hubs like San Pedro and call them "second cities" or "fast-growing cities". It's not difficult for companies in these regions to carry out pilot projects and demonstrate their value, which means that LA also has access to these “fast-growing cities” with the infrastructure of major hubs. It offers. "

6. LA is , have also benefited from the talent and funding from Silicon Valley that

Minnie : "When I told my friend about moving to LA 10 years ago, I think they thought I was crazy with that idea and should leave the tech industry, but now I'm around. My friend often asks me how to switch to LA. "

In her podcast "LA Venture"Sherpa Capital "LA has a great emerging ecosystem, and LA has all the key elements, and it's on the rise," said Scott Stanford, founder of Uber, Facebook, and Stripe's early investor. I think it is in. "

7. There is no sign that the momentum will subside for a while

Dave : "LA has received a lot of attention, with the Super Bowl in 2022, the World Cup in 2026, and the Olympic Games in 2028. People call it the decade of LA. ) ”. I think this period is a good opportunity to rewrite the story and expand the life science innovations that are taking place here.”

Minnie : "I'm asking all the guests on the podcast what's missing in LA, and 80% of people say that LA isn't enough for time. In fact, LA venture investment is It has increased eight-fold in the last 10 years, and it feels like you're on a rocket ship. "

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