2018 LA Tech & Venture Scene | Amplify.LA

2018 LA Tech & Venture Scene | Amplify.LA

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  @AMPLIFYLA ERIC PAKRAVAN |@EPAKRAVAN 2018 LA TECH SCENE
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  2 @AMPLIFYLA VENTURE CAPITALLANDSCAPE '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 $80B $60B $40B $20B $100B U.S. VC ACTIVITY BY YEAR 80K 60K 40K 20K 100K AMOUNTRAISED($) (#DEALS) SOURCE: PITCHBOOK U.S. venture activity has rebounded 3x since the lows of the post-dotcom boom days
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  3 This rebound inVC funding has brought with it a few notable changes… @AMPLIFYLA VENTURE CAPITAL LANDSCAPE
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  4 VENTURE CAPITAL LANDSCAPE '04'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 16 18 18 21 19 17 19 20 21 26 31 39 36 39 7 7 7 7 7 6 6 7 8 9 11 13 15 16 4 3 4 4 4 5 5 5 6 7 Seed Series A Series B $40M $30M $20M $10M MEDIAN PRE-MONEY VALUATIONS BY SERIES @AMPLIFYLA SOURCE: PITCHBOOK DATA Seed has become the new Series A…and Series A is the new B round New technologies (e.g. AWS, Shopify, and the App Store) have lowered the costs of launching an internet business, and in part helped raise the bar for attracting capital1 1Jeff Jordan, Andreesen Horowitz
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  5 LOS ANGELES TECHLANDSCAPE LOS ANGELES VENTURE CAPITAL FUNDING RAISED IN L.A. & O.C. L.A. GRADUATES MORE ENGINEERS THAN ANY OTHER METRO IN THE UNITED STATES.* $4B $3B $2B $1B *ACCREDITATION BOARD FOR ENGINEERING & TECHNOLOGY $5B @AMPLIFYLA SOURCE: CB INSIGHTS *EXCLUSES SNAPCHAT 2009 2010 2011 2012 2013 2014 2015 2016 $5B in 2016 COMPANIES FUNDED (2017) 376 EXITS (2016) 80 Acquired by Facebook ($2B)Acquired by Apple ($3B) Acquired by Unilever ($1B) IPO ($24B) RECENT EXITS / IPO Los Angeles has the 3rd largest GDP in the world after Tokyo & New York. TOKYO NEW YORK CITY LOS ANGELES SEOUL LONDON 1 2 3 4 5 SOURCE: BROOKINGS INSTITUTION 2015 $1.62T $1.49T $928B $903B $831B MASSIVE LOCAL ECONOMY Those same technologies have made it possible to launch multi-billion dollar technology companies outside of traditional tech hubs like Silicon Valley & Boston LA’s wealth of resources have turned it into a serious technology center
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  6 VENTURE CAPITAL INLOS ANGELES @AMPLIFYLA METRO TOTAL VC FUNDS RAISED SINCE 2006 ($B) 2.7 1.5 1.9 3.4 4.8 35.5 7.7 117.8 Los Angeles San Diego Austin Chicago Washington DC San Jose Seattle San Francisco 43.6New York 41.2Boston TOTAL VC INVESTED SINCE 2010 ($B) 21.3 9.4 6.6 8.3 8.2 43.3 8.4 101.4 33.9 30.7 SOURCE: PITCHBOOK 2016 NET OUTSIDE CAPITAL ($B) 18.6 7.9 4.7 4.9 3.4 7.8 0.7 -16.4 -9.7 -10.5 Historically, LA startups have had to look outside the city to raise capital. In fact,
 LA startups attract more outside capital than any other U.S. metro
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  7 That too isstarting to change In just the last 24 months, 17 new funds set up shop in Los Angeles — doubling the number of local funds @AMPLIFYLA VENTURE CAPITAL IN LOS ANGELES ventures
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  8 VENTURE CAPITAL INLOS ANGELES PRE-SEED SEED SERIES A @AMPLIFYLA ventures
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  9 VENTURE CAPITAL INLOS ÁNGELES RANK COMPANY 1 2 3 4 5 6 7 8 9 10 % OF SEED DEALS BY CATEGORY SERIES SEED SERIES A $ RAISED $450M $135M $109M $75M $75M $65M $64M $60M $50M $40M 7%5% 5% 5% 14% 16% 23% 23% Consumer Products & Services Media & Entertainment Business Intelligence Health & Wellness Real Estate Tech Fintech Adtech Other SOURCE: CRUNCHBASE @AMPLIFYLA (DEALS BETWEEN $500K-$5M) LARGEST LA VC DEALS IN 2017 10 $40M LA FUNDING ROUND DETAILS BY STAGE MEDIAN POST-MONEY VALUATION $8.8M MEDIAN ROUND SIZE $1.1M AVERAGE COMPANY AGE 1.8YRs MEDIAN POST-MONEY VALUATION $28M MEDIAN ROUND SIZE $6M AVERAGE COMPANY AGE 4.2YRs SOURCE: PITCHBOOK 2017 was a landmark year for Los Angeles tech
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  10 A HISTORY OFLA TECH @AMPLIFYLA PRE-BUBBLE ERA POST-BUBBLE ERA NOW (RESURGENCE) - 2000 2000 - 2011 2011 - PRESENT
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  11 A HISTORY OFLA TECH INPUTS: CAPITAL & INCUBATION SOURCES OUTPUTS: STARTUPS & FUNDS FOUNDED BY PEOPLE WHO ESTABLISHED THEIR LA TECH CAREERS AT MYSPACE THE MYSPACE EFFECT @AMPLIFYLA MYSPACE WAS CONCEPTUALIZED BY CURRENT USC STUDENTS & INCUBATED WITHIN E-UNIVERSE The demise of Myspace led to a proliferation of tech activity in LA
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  12 A HISTORY OFLA TECH WESTSIDE LA OFFICE RENTS PERCENT CHANGE SINCE 2011 SNAP EMPLOYEE GROWTH THE SNAPCHAT EFFECT SOURCE: AVISON YOUNG 0% 20% 40% 60% 80% 100% 120% M arina D elRey CulverCity Playa Vista Santa M onica Brentw ood Venice @AMPLIFYLA 0 500 1000 1500 2000 2500 2012 2013 2014 2015 2016 2017 (APPROXIMATE FROM SEC FILINGS, AND LINKEDIN DATA) Over a decade later, Snapchat is having a similar effect on LA — attracting talent, investment & even affecting local real estate prices!
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  13 WHY LA? 1. Largemarket 🏙 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 (beyond aerospace & Hollywood) ✈ Most people think of LA as the “three-legged” economy – aerospace, movies, and tourism. In reality there are 14 significant industry clusters, including fashion, IT, manufacturing and design 5. A leader in technology & engineering 🖥 Nearly 33,300 people work in computer systems design and software publishing activities. LA also boasts 9 engineering schools, including those at CalTech, Harvey Mudd, USC & UCLA Source: Los Angeles County Economic Development Corporation @AMPLIFYLA
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  14 WHY LA? 6. Amajor 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 7. A leading creative & design center 🎨 In addition to apparel design, Los Angeles is also a center for the design of autos, furniture, 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. An aerospace & 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
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  15 LEADING SECTORS INLA TECH GAMING ECOMMERCE ONLINE MEDIA CONTRIBUTING FACTORS LOCAL LEADERS KEY STATS CONTRIBUTING FACTORS LOCAL LEADERS KEY STATS CONTRIBUTING FACTORS LOCAL LEADERS KEY STATS 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 2015LA & Long Beach are the two largest ports in the United States E3 E3 in Los Angeles is the world’s preeminent gaming expo. @AMPLIFYLA
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  16 EMERGING SECTORS INLA TECH VIRTUAL & AUGMENTED REALITY E-SPORTS TRANSPORTATION & AEROSPACE TECH CONTRIBUTING FACTORS EMERGING LEADERS KEY STATS CONTRIBUTING FACTORS EMERGING LEADERS KEY STATS CONTRIBUTING FACTORS EMERGING LEADERS KEY STATS Film Industry USC (Institute for creative technology) Access to content investors Talent (Storytellers, animators, game developers) Digital gaming industry Access to influencers Dedicated E-Sports Funds Creative Talent NASA’s JPL Lockheed Martin Boeing Engineering Talent (Caltech, USC, Harvey Mudd) @AMPLIFYLA $2B Facebook purchased OC based Oculus for $276M has been invested in 4th mode transportation upstart Hyperloop OneThe LA Staples Center (20k+ capacity) consistently hosts sold out League of Legends championships
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  17 WHAT’S AMPLIFY? PORTFOLIO CAPITALRAISED $125M $250M $375M $500M 2012 2013 2014 2015 2016 2017 $1M $12M $32M $90M $250M $500M $500M IN 5 YEARS 8-15%$150K-$350k INITIAL CHECK SIZE 10-15 COMPANIES PER YEAR 75 PORTFOLIO COMPANIES $1.3B COMBINED ENTERPRISE VALUE 9 ACQUIRED WE INVEST <1% OF COMPANIES WE MEET AMPLIFY PORTFOLIO Amplify invests in startups at the earliest stages. With over 150 mentors, and an incredible team, we actively provide support, capital and guidance throughout the lifetime of your business. In all we’ve invested in 75 companies, and have seen 9 exits including to Apple, Google & FanDuel. @AMPLIFYLA SELECT PORTFOLIO COMPANIES Oded Noy MANAGING PARTNER Eric Pakravan VICE PRESIDENT Amanda Schutzbank VICE PRESIDENT Paul Bricault MANAGING PARTNER Richard Wolpert VENTURE PARTNER AMPLIFY TEAM Connor Sundberg ANALYST
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  KEEP UP WITHAMPLIFY 18 Want exclusive content from Amplify? @AMPLIFYLA JOIN OUR MONTHLY UPDATES: amplify.la/join
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  @AMPLIFYLA 2018 LA TECHSCENE ERIC PAKRAVAN | @EPAKRAVAN