For entertainers, Los Angeles is known as the “City of Dreams.” Thousands flock to the city from across the United States, hoping to catch their big break, but entertainment isn’t the only industry thriving in the area. Entrepreneurs looking to find their next major investment should check out the tech scene in Los Angeles. While the area is not often considered a major technological innovation hotspot, the city is home to a thriving tech community that is rapidly gaining traction.
L.A. Listed as a Top Tech City
Silicon Valley and San Francisco are often the cities that come to mind when considering tech start-up hubs, but Los Angeles is currently ranked at number 18 in the top 25 tech cities. The tech industry in the area is experiencing steady growth and has the potential of exploding in the coming years. The diversity of talent and skills in the area, combined with established industries and young entrepreneurs, makes Los Angeles a hotbed of activity in the technology sector. The relative youth of the tech industry in the area, combined with the rapid growth that industry is experiencing, ensures a steady supply of start-ups that can still be had for a bargain.
Firms and Capital Moving into the Area
Major technology companies are already picking up on the trend and are investing in L.A.. Several companies from Silicon Valley, including Oculus, are moving capital into Los Angeles. Tech companies already established in the area are attracting major talent for employment, who are later starting their own tech companies. In other words: the L.A. tech scene is growing rapidly and has the potential of being the birthplace of tomorrow’s tech giants.
This fact is also not lost on venture capitalists, and firms like CrossCut are focusing most of their attention on the city and already seeing huge leaps in limited partner interest. Increased investment capital being injected into the area ensures continued industry growth and attracts young innovators who think outside the box. This presents a variety of options for those wishing to purchase a tech start-up in the city.
Diversity Driving Tech Success in Los Angeles
The diversity in Los Angeles plays a major role in the success of tech companies there as well. Women tech entrepreneurs, an often-underrepresented group, are finding footing in the accepting business communities of L.A. and are bringing fresh ideas to the table. Not only are these women making their mark on the tech scene, many of them are using their shared experiences as women to target areas of concern among female consumers and develop superior technology solutions to those problems. This particular wave of innovators taps female-driven markets in ways that many male-led tech companies have been unable to do, giving them an edge with a huge consumer demographic. Purchasing one of these female-inspired start-ups transfers those benefits on to the buyer.
The tech scene in Los Angeles is one of the area’s best kept secrets, but the industry is growing quickly. Investors looking to purchase a company in the area should pay close attention to the many tech start-ups that call L.A. home. Despite the rapid growth, the technology sector in the area is still young enough to keep start-ups affordable to buyers. Growing investor interest suggests greater sustainability for tech companies.
Perhaps the greatest reason of all to consider the tech companies in the area is simply because they are rooted in technology. Technology is a fast-paced and driven industry that will carry on long after others have faltered. Buying a technology-based business is an investment that has the potential to bring returns far into the future.
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