There’s something slightly unexpected brewing in Hollywood and it’s not a hot new movie project. Innovation in Hollywood is driving a flood of entrepreneurial activity, making LA the fastest growing hub for start-ups in the US. Technology entrepreneurs and venture capitalists are converging in Southern California to launch a whole new breed of entertainment, gaming, ad tech and video companies.
According to LA venture firm Upfront Ventures, after a record year in 2014, LA is on track to set another new high for venture dollars invested in the region in 2015. In Q1, LA venture funding reached $700m, which puts the area on track to surpass last year’s total of US$2bn.
While all this new start-up activity is attention worthy, it is also important to remember that LA is already home to highly successful technology ventures including Snapchat, Tinder, Oculus VR, Maker Studios, The Honest Company, and SpaceX.
What makes Hollywood and the rest of LA such a good breeding ground for innovation is the combination of a steady stream of engineering graduates and a deep pool of creative talent from local industries. Of course, all year round sunny weather doesn’t hurt either. As Snapchat CEO Evan Spiegel recently said, “Being in the center of arts and entertainment surrounds Snapchat with energy.”
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