The Los Angeles pioneering circle ushered in a year of history in 2014. Last year, Los Angeles start-up companies financed more than $3.04 billion trillion, nearly three times times the 2013 1.055 billion trillion dollars, according to public information from the SEC and various media outlets. In addition to the 486 million-dollar financing of a giant such as Snapchat, more than 250 start-ups have had their own seed wheels or subsequent rounds of related investments, 172 of which raise more than 1 million dollars.
Not only the financing is active, exit situation is gratifying. In addition to TrueCar and Rubicon's initial IPO, a total of more than 80 companies withdrew, with Conversant (2.2 billion) and Internet PS (1.1 billion) acquiring more than 1 billion dollars. The amount of open project withdrawals has reached 5.889 billion per cent, up 430% from 2013. No wonder the famous Silicon Valley entrepreneur, the best-selling author Peter Taylor, from 0 to 1, recently cited Los Angeles's entrepreneurial environment as an overall underestimate. As he responded to the Los Angeles Times interview, if the entrepreneurial ecology of the region was like a stock, "I would have shorted New York to buy Los Angeles".
Outside the capital, the overall entrepreneurial environment in Los Angeles is booming. In addition to more incubators and shared office space, the South Canada region graduated each year of engineering technology and design talent has surpassed Northern California, has become the development of a healthy entrepreneurial ecosystem of important factors. Even the mayor of Los Angeles, Eric Garcetti, is proud to say that 2014 was the year of Technology in Los Angeles, where the employment situation in the Los Angeles area became healthier and unemployment was reduced to 2% because of the explosive growth of start-ups.
From the 2014 funding figures, the activity of Los Angeles start-ups is largely social (21), health Care (12), real Estate (13), software Services (35), electric dealers (30), digital Media (26), Mobile (27), Advertising (21), Consumer Services (26), games (18), Fashion (10) and several other fields. Compared with the 2013 and 2012 data, Los Angeles has a unique pattern of social, electrical, digital entertainment, health care, and other areas of innovation and entrepreneurship, such as Silicon Valley and New York.
In addition, the 2014-year Los Angeles Entrepreneurial Circle presents more new ideas.
Innovation of advertising technology
Gathered a large number of media, creativity and data analysis talent in Los Angeles, advertising industry innovation has been in the forefront of the world. Early in the Los Angeles Pioneers will be able to nurture the "pay-per-click" mode of advertising to save Google, and later in the media, technology, channel innovation is endless.
TRUE[X] is a video platform that utilizes technology to implant floating advertising content in front of the subject content. After financing 6 million dollars, finally in 2014 to 200 million U.S. dollars sold to Forbes 21st century. Ad Colony, focused on the mobile side of the advertising video channel, also sold to Opera at a high price of 350 million dollars. Not to mention the Rubicon Project that we mentioned earlier in the NYSE listing in 2014. After the listing, the company financed more than 103 million dollars. It focuses on the automation of ad purchase and sales. The company's advertising Automation cloud computing platform is an extended software platform that supports and optimizes the market for real-time digital advertising transactions between buyers and sellers.
MCNS (Multi Channel Network) shine
In March 2014, Disney bought Maker UBM at a sky-high price of $500 million, once again giving attention to the multi channel Network platform under Youtube's ecology. A MCNs (multichannel network) is a number of entities that are affiliated with a YouTube channel. Such companies provide internet-red people with the help of products, programs, funds, cross-selling, partner management, Digital Rights Management, profit/sales and/or development of audiences.
The most famous case before this field was the Awesomeness TV, which was acquired in 2013 by DreamWorks in 33 million dollars. And Maker UBM is also focused on helping the web to create and distribute content, and they have more than 80 million subscribers on YouTube, more than 1 billion visits a month, and over 1000 channels.
In addition to Maker UBM, the relevant types of startups perform well. The Mcn,tastemade of food is 25 million, the Mitu of the Latin group is 5 million, and all Def Digital (5 million) for the market segment, the young Turks (4 million), Omina Media ( 500,000 are popular with Los Angeles investors.
In addition to the previous mention of Maker UBM's gorgeous exit, Stylehual also 107 million by the RTL Group strategy, and Bigframe focus on the grassroots star broker of the company to 15 million of the price of the dream factory to become the second MCNs company in the bag.
Continuous exerting force of electric business Platform
In Mark Suster's Los Angeles start-up pillar Industry 3C (social, content, electrical) theory, Snapchat has propped up half of Los Angeles's social sphere with its 10 billion high valuations, and mcns and advertising platforms have also played an important role in the development of content. , then the electrical business as Los Angeles has always been the advantage of the project, 2014 also gratifying sustained efforts.
We have to mention a few of the companies that shine. The Dollar shave Club is the first company to become famous in a monthly custom model, and it delivers cost-effective razors every month to address the consumer demand for many men. Relying on innovation in early service mode, the viral marketing that it does in content quickly accumulates a large number of user groups for itself. This year its funding score is 50 million dollars, helping to expand capacity and users. Integrated with fashion and social elements of the electric business platform ethically Fab, on the platform to 39.99 dollars a fashion single (shoes, newspapers, jewelry, jeans) The price of the hearts of many female fans, financing 85 million to help it in logistics and products more stable development. Jessica Alba involved in the management of the supply of non-toxic maternal and child products of the Honest Company, the valuation has been 1 billion U.S. dollars. In 2014 to 70 million U.S. dollars, so that the honest Company has to expand the international market emboldened.
Investment and financing environment in Los Angeles continued to develop healthily. While many may wonder whether there has been a bubble in recent years, the value of the project is relatively low compared with North Plus. Although the Los Angeles business sector has been emerging as a start-up and a celebrity investor in recent years, there is still a lack of influential VCs and more money. With a good exit and a continuing venture, it is believed that the Silicon Beach (Los Angeles) rivalry with Silicon Valley will not be too far off.