United States

Los Angeles

"Los Angeles offers founders a really strong network of private investors [and has] a large culture of entrepreneurship with accelerators and local events going on that help founders at all stages to make solid connections with potential partners and rising talent."

Brad Zions
Managing Partner at Pitbull Ventures
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Highlights

Los Angeles is one of the largest startup markets in the U.S., supported by a diverse network of founders, more than 500 VC firms, and a wide range of accelerators, incubators, and coworking spaces. In addition to its world-famous entertainment industry, Los Angeles is home to NASA’s R&D center, the Jet Propulsion Laboratory, Northrup Grumman's 110-acre campus, and SpaceX headquarters.

The ecosystem is a major player in tech sectors ranging from the metaverse to crypto to gaming. The city also boasts some of the world’s top universities, including UCLA, CalTech, and USC, which provide startups with a steady stream of talent. According to CommercialEdge, LA ranks #2 after only New York in the number of residents who hold at least a bachelor’s degree in science, engineering, or related fields. Nearly 1.5 million residents have such a degree. Additionally, Los Angeles County has the largest foreign-born population of any county in the U.S., at one of every three residents, according to 2022 census estimates.

The IT Leadership Forum and 12th Annual MedTech Partnering Conference 2024 was held in March, TECHSPO Technology Expo took place in April, and Venture Capital Summit 2024 was held in June. AI startup Metropolis raised a $1.05 billion Series C round in October 2023. Software and data company VideoAmp raised $150 million in a September 2023 round. Dozera AI has raised a total of $95.7 million over three rounds, and defense technology company Chaos raised $70 million in a March 2023 Series A round.






Ecosystem by the Numbers

ECOSYSTEM VALUE
(H2 2021 - 2023)
$441.6 bn
GLOBAL AVG. $29.4 bn
TOTAL EARLY–STAGE FUNDING
(H2 2021 - 2023)
$7.8 bn
GLOBAL AVG. $655 m
ECOSYSTEM VALUE GROWTH
(H2 2021 - H2 2023 VS H2 2019 - H2 2021)
22%
22% 22 48 46% 46 100 0
GLOBAL AVG. 46%
NUMBER OF UNICORNS
(H2 2021 - 2023)
41
GLOBAL AVG. 3
MEDIAN SEED ROUND (H2 2021 - 2023)
$1.5 m
GLOBAL AVG. $985 k
MEDIAN SERIES A ROUND (H2 2021 – 2023)
$10 m
GLOBAL AVG. $7.5 m
SOFT. ENGINEER SALARY (2023)
$137 k
GLOBAL AVG. $47 k
EARLY-STAGE FUNDING GROWTH (2020 - 21 VS. 2022 - 23)
9
Scale of 1 (lowest) to 10 (highest)
TOTAL VC FUNDING (2019 - 2023)
$70 bn
GLOBAL AVG. $4.6 bn
TIME TO EXIT
9.9 years
GLOBAL AVG. 10 years
EXIT AMOUNT (2019 - 2023)
$98 bn
GLOBAL AVG. $8.9 bn
EXIT COUNT (#)
(2019 - 2023)
855
GLOBAL AVG. 80
179
140
211
187
138
2019
2020
2021
2022
2023

Sub-Sector Strengths

Life Sciences

Built around a globally respected university network that produces thousands of STEM graduates each year, the LA Life Sciences ecosystem is growing fast. The UCLA Innovation Fund facilitates the commercialization of UCLA-owned Life Sciences technologies by providing up to $150,000 in funding. The LAEDC Bioscience Council is a network of leaders dedicated to cultivating the industry’s workforce. The Los Angeles Bioscience Ecosystem Summit showcases innovation each year.

Gaming

Los Angeles is home to more than 200 Gaming startups. The final Electronic Entertainment Expo (E3) was held in Los Angeles in June 2023. GamesBeat Summit 2024 took place in May. Game studio Gardens raised $31.3 million in a June 2023 round. Game development company Genpop Interactive raised $9.9 million in a December 2023 venture round.

Cleantech

LA is aiming to be the first major U.S. carbon-free city by 2035. The Los Angeles Cleantech Incubator (LACI), established by the City of Los Angeles, supports up to 50 startups each year. LACI’s $6 million Cleantech Debt Fund provides green loans of $25,000 to $250,000 to early-stage Cleantech startups with a particular focus on underrepresented founders. Sustainable fuel tech company WasteFuel raised $10 million in a July 2023 Series B round.

Reasons to Move Your Startup to Los Angeles

Market Access

Home to nearly 4 million people, LA provides startups with a huge potential market. If Los Angeles County were a country, its economy would be the 19th largest on the planet. More than 40% of American imports travel through the Ports of Los Angeles and Long Beach before connecting to a system of railways and interstate highways that distribute them across the country.

Funding & Incentives

Los Angeles offers a huge array of funding options for businesses from venture capital to small business grants. The Los Angeles County Economic Development Corporation provides support for entrepreneurs, including assistance with tax credits. Its Small Business Loan Guarantee Program boosts access to capital, while its California Capital Access Program encourages lenders to make loans to small businesses.

Diverse Talent

A remarkably diverse populace and the presence of several top universities help develop the talent necessary to propel LA’s innovation ecosystem forward. Los Angeles is much more diverse than Silicon Valley, boasting residents from at least 130 countries who speak over 200 languages. One out of every three residents is foreign born.

Get connected

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