The latest National Venture Capital Association’s survey revealed an exponential business growth in the southern California area. Although golden times are through, plenty of people are still nailing the market big time , particularly startup founders in Los Angeles and Orange County. Investors are flocking to Southern Cali.
Silicon Valley is no longer 'trending', the NVCA survey, showed the number of deals fell 11% in just 3 months, versus in Los Angeles and Orange County, the $4.1 billion in deals in this same period, represents 38 percent more than the full year of 2014. For the full year 2014, S.California companies inked 290 deals, an increase of 7% compared to 2013. The growth is exponential.
“Los Angeles feels like New York four years ago,” says David Pakman, a partner at Venrock Capital, of Menlo Park, California. “There are more deals and more companies being created there.”
Comparing L.A. to the Big Apple is partial. NYC began its transformation into a thriving startup base few years ago. They hosted numerous prominent venture capital firms (New Enterprise Associates and Gotham Ventures). The city has also launched a series of strong initiatives such as helping build an applied sciences and engineering campusevoted to training high tech workers. As a result of these multiple efforts, volume of deals in New York increased 65%, to $5.2 billion in 2014.
Southern California may be in the process of transforming itself too, Over the years, startups have turned to more affordable hubs like Austin, Seattle, and Dallas, as they’ve been priced out of Silicon Valley, which has some of the most expensive commercial real estate in the world.
Read more: http://www.inc.com/jeremy-quittner/los-angeles-deals-ramp-up-during-weaker-third-quarter-for-venture-capital-investment.html