In a way, it’s a Hollywood story. Young-ish hopefuls, vying for the attention and dollars of larger, older, more experienced agents (of sorts), who will bring money, connections, and attention their way, launching their careers.
Only the players here don’t want to be actors. They’re starting businesses. Start-ups in Los Angeles -- they are a growing population of social media riffs, mobile apps, cleverly-named development companies, video platforms, and every shade of web curation all competing for dollars in a company town.
Evidence of the growing zeitgeist was on display Tuesday night at Start Engine, Los Angeles’ largest accelerator, as they hosted their inaugural Investor Demo Day, at which their ten new companies presented ideas in 5-minute pitches.
This group was the first batch of start-ups Start Engine has sent through its 90-day fast-track program. Created by Activision co-founder Howard Marks and Bristol Capital Advisors founder Paul Kessler, Start Engine is aiming to make L.A. a top tech entrepreneur city.
Marks said, “This is history in the making because L.A. is the second largest city in the country, and yet we haven’t felt this high tech presence. Today is one of those days where we can make a mark.”
The event brought entertainment execs, founders of venture capital funds, investors, developers, press, PR, and young talent to the same place. That’s no small feat, as the landscape of this town alone draws people apart. The urban sprawl makes L.A. what it is: vast and open. But it also makes you get really comfortable with (long) freeway commutes.
Los Angeles is rich with expendable wealth, fresh ideas, and the philosophy that this place called California is the final frontier of the American future. A place for dreamers.
So what’s the deal? Why hasn’t Los Angeles dented the tech scene in a bigger way yet?
Are we afraid to somehow disrupt a formula (Hollywood’s money-making machine) that works so well? Is there room for a tech scene in Hollywood’s backyard? Is it a lack of talent? Is it the sprawl?
Do we need Bloomberg-Cornell style support?
There are a million little questions floating around. But players in the space seem to agree that the eagerness to get L.A. off the ground as a hub for tech start-ups has reached an all-time high.
Through a growing number of local accelerators and incubators (currently there are about 12), 50 to 100 new companies could be launched within a short time frame.
Through universities and colleges in the area piloting entrepreneurial programs, there is a vested, long-term interest in education aiding business-creation. (Computer science students graduating from UCLA don’t just want jobs, they want to be Steve Jobs).
Through venture capital groups, like the L.A. Venture Association and the TechCoast Angels, more conversations are being had between investors and entrepreneurs. More open discussions are circling in on what it will take to be the “next big thing.”
Spurring the economic engine of debt-heavy California in the state’s largest city has to be interesting to Governor Jerry Brown, right? Are you reading this, Jerry?
New York has Foursquare, Kickstarter, and Tumblr. San Francisco and Silicon Valley have, well, everything else: Google, Facebook, Twitter, Instagram, and so on.
Lots of brains are currently searching for a big star that will put L.A. on the nation’s tech map.
Jean Chong, CEO of start-up Starbates-- a QR-code solution to replace restaurant punch cards, said “L.A. is often overlooked as a tech center. But with all these incubators, 50 companies, investors and mentorship -- somebody’s got to take off.”
