The Los Angeles technology market is one of the largest and fastest growing in the US. It is the third largest tech ecosystem and has grown 4 times faster than the national average in recent years. Capital investment in LA startups has also increased significantly, with over $1.5 billion invested in 2013. LA has a strong talent base and is a leader in the key industries of the future, particularly content, commerce, and communication. The future looks bright for continued growth and success of the LA tech sector.

1. The Los Angeles
Technology Market

2. LA ecosystem is heating up
2
ADD IMAGE

3. LA is #3 largest tech ecosystem in the US…
24%
14%
Share of US Early-Stage Startups (%)
12%
AngelList startups by region
4% 4% 3% 2% 2% 2%
Silicon
Valley
New York SoCal Northwest Boston Chicago Austin DC Colorado
Source: AngelList – startup companies by region as of July 31, 2014.
Note: SoCal includes LA (69%), San Diego (15%) , Orange County (9%), and other areas (6%), Northwest
includes Oregon & Washington. Silicon Valley includes 3 San Francisco & Bay Area.

4. …and #1 fastest growing
Source: AngellList – startup companies by region by month.
Note: Compound monthly growth rate of new startups by region from Jan 2014 to June 2014
4
5.3%
4.7% 4.6% 4.5% 4.4% 4.1% 4.0% 3.9% 3.8%
SoCal Northwest Chicago New York DC Boston Silicon
Valley
Colorado Austin
2014 1H Monthly Startup Growth
AngelList startups by region

5. Capital flowing to LA: $1.5B+ invested in
LA in 2013, a 30% CAGR since 2010
$700
$920 $1,040
5 Source: CB Insights – LA Funding Report (July 2014)
$1,550
Notes: US VC grew at 7% CAGR from 2010 ($23.7B) to 2013 ($29.2B) via CB Insights.
$860
172
225
281
302
2010 2011 2012 2013 2014
# Deals
Invested
Capital ($M)
1H
LA has grown 4X faster than US average

6. 250 companies have raised $1M+ since 2012
Prominent SoCal companies
by last round of financing
2012 2013 2014 YTD
$50M+
$10M+
$1M+
Sources: CB Insights, Crunchbase

7. Large valuable companies are built in LA
7 Source: CB Insights, Yahoo Finance (9/3/14 EOD), TechCrunch

8. Increasing number of prominent successful exits
Acquired
(Facebook)
IPO IPO
$8B+ in 2014 so far with more to come
8 Source: CB Insights, YCharts.
Acquired
(Disney)
Acquired
(Apple)
Acquired
(AOL)
Acquired
(Apple)
Acquired
(Opera)
Acquired
(AOL)
Acquired
(Red Hat)

9. Why tech thrives in LA
9

10. LA is built on entrepreneurship
530
490
2011-2013 Entrepreneurs per 100,000 people
440
400
360 360 360 350
10 Source: Kauffman Index of Entrepreneurial Activity, April 2014
310 290
240 240
200 200 190
LA
Miami
SF
Houston
NYC
Atlanta
Phoenix
Riverside
Dallas
Seattle
DC
Boston
Chicago
Phelphia
Detroit

11. Early successes have seeded the
ecosystem’s new era growth
11
LA Tech 1.0 LA Tech 2.0
Seasoned entrepreneurs and recycled
capital drive new ventures

12. LA graduates the most engineers in the US…
7,561
6,811
LA
Boston
Bay Area
Sources: US News & World Report, Accreditation Board for Engineering and Technology (ABET);
Includes graduate universities within 150 miles 12 of metropolitan area
10,945
9,862
New York
Engineering Graduate Enrollment

13. …from some of the most prominent schools
Sources: US News & World Report, Accreditation Board for Engineering and Technology (ABET);
Includes graduate universities within 150 miles 13 of metropolitan area

14. LA has a strong base of local investors…
14 Source: CB Insights

15. …who are actively writing LA checks
Most Active VC Investors in LA
Rank
Investor
1
Upfront
Ventures
2
Mucker
Capital
3
500
Startups
4
Greycro=
Partners
5
SV
Angel
6
Siemer
Ventures
7
Rincon
Venture
Partners
7
Double
M
Partners
9
Baroda
Ventures
10
First
Round
Capital
10
Google
Ventures
15
LA-based Venture Firm
Source: CB Insights – LA Funding Report (July 2014)

16. Supportive incubators, accelerators, and
community spaces foster early stage growth
16 Source: RepresentLA

17. Living in LA is more affordable compared to
other tech centers
LA
SF
NYC
Overall
Index
127
152
148
Groceries
106
119
149
Housing
176
243
166
ULliLes
112
90
131
TransportaLon
106
109
128
Healthcare
110
111
127
Goods
&
Services
103
119
144
Equivalent
Standard
of
Living
$50,000
$59,807
$58,197
vs
Los
Angeles
20%
16%
Source: Cost of Living from Council for Community and Economic 17 Research (via Areavibes)

18. And, of course, the weather doesn’t suck
Source: Kelly Norton, Kellegous.com “The Pleasant Places to Live” graphic & analysis using NOAA data
18
Pleasant days: Days with (1) mean temperature between 55° F and 75° F, (2) minimum temperature above
45° F, (3) maximum temperature below 85° F, and (4) no significant precipitation or snow depth

19. But it’s not about the
“next” Silicon Valley
19 Source: Slate.com

20. Tech has moved beyond servers & switches
– we are shifting to the application layer
20
Application Layer
Scalable computing & storage
Open source software
Telecommunications
Personal computing

21. We’ve seen this before – every technological
revolution goes through the same cycle
The Industrial Revolution
Age of Steam & Railways
Age of Steel, Electricity, &
Heavy Engineering
Age of Oil, Automobiles, &
Mass Production
Age of Information and
Telecommunications
21
1771
1829
1875
1908
1971
1829
1873
1920
1974
?
1797
1847
1893
1929
2001
Application
Layer
• Manufacturing industry
• Open trade
• Standardizing time
• Catalog sales
• Economies of scale
• Urban development
• Interventionism
• Interstate highways
• IMF, World Bank, BIS
Infrastructure
Layer
TODAY
Source: Chart adapted from Carlota Perez’s “Technological Revolutions and Financial Capital: The Dynamics
of Bubbles and Golden Ages” who describes the two phases as “Installation” & “Deployment” periods

22. The focus is increasingly on what we
actually DO online: the 3 C’s
22
Application Layer
Content Commerce Communication
Infrastructure Layer
This is what LA does best

23. Content is increasingly consumed online…
Avg Time / Day with Major Media by US Adults
(hh:mm)
Total 10:46 11:18 11:49 12:03 12:14
Other
Radio
TV
23 Source: eMarketer, April 2014. Note: Adults 18+, time spent with each medium (regardless of multitasking).
Excludes time spent watching digital video via console, connected TV or OTT device.
Content
2010 2011 2012 2013 2014
Digital
3:11
4:33 5:14
3:49
5:46
Print
% of Time 30% 34% 39% 43% 47%

24. US adults watch 5+ hours of video per day.
In the future, video will be an online medium.
Avg. Time / Day Consuming Video by US Adults
(hh:mm)
Total 4:30 4:49 5:07 5:15 5:23
0:06
0:03 0:08 0:22 0:33
0:12 0:21 0:22 0:22
4:24 4:34 4:38 4:31 4:28
2010 2011 2012 2013 2014
Mobile
Online
TV
24 Source: eMarketer, April 2014. Note: Adults 18+, time spent with each medium (regardless of multitasking).
Excludes time spent watching digital video via console, connected TV or OTT device.
Content

25. LA is the creative capital of the US,
specializing in video content
1 in 7 people in LA are employed in a creative field
#1 metro area for Art, Design, & Media employment
$140B+ annual economic impact from creative industry
25
Sources: 2013 Otis College of Art and Design; Bureau of Labor Statistics 2012
Content

26. Video & content startups are succeeding in LA
26
And many more…
#1 producer & distributor
of online video
6.5B+ monthly views
450M+ subscribers
Leading artist
social network
300M pieces of art
30M+ members
Largest Latino online
video network
400M+ monthly views
40M+ subscribers
Sources: Maker, DeviantArt, Mitu
Content

27. Commerce also shifting online:
14% CAGR vs. 3.5% for offline US retail
$225
$263
$304
$347
$393
$440
$492
5.3%
5.8%
6.4%
7.0%
7.6%
8.2%
8.9%
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
$600
$500
$400
eCommerce
% of total
retail sales
$300
$200
US Retail
eCommerce
Sales ($B)
$100
$-
2012 2013 2014 2015 2016 2017 2018
27 Source: eMarketer April 2014. Note: includes products or services ordered using the internet, regardless of
the method of payment or fulfillment, excludes travel & event tickets.
Commerce

28. LA is the retail & trade capital of the US
#1 metro area for Retail & Trade sector employment
$400B+: imports / exports through LA ports in 2012,
a new record for the US
36% of US apparel manufacturing jobs are in LA
Sources: Kyser Center for Economic Research International Trade Outlook – The Southern California Region
2013-2014. Bureau of Labor Statistics 2012. CIT & CFA Fashion Industry Profile 28 and 2014 Outlook
Commerce

29. LA commerce startups have taken the lead
Subscription-based
fashion retail
$400M sales
projected for 2014
And many more…
29 Sources: WSJ 8/26/14 on Honest Co, Re/Code 8/28 on JustFab, TrueCar S-1
Car buying &
selling platform
7,000+ dealers
1.1M+ car sales
Eco-friendly baby
& home products
$150M+ revenue
projected for 2014
Commerce

30. Communication
Three of the top social apps located in LA
Photo messaging app
700M+ snaps / day
20%+ MoM growth
30 Sources: The Economic Times 8/1/14 (Snapchat), Sean Rad interview at 2014 Upfront Summit (Tinder),
Mashable 3/11/14 (Whisper)
Mobile dating app
10M+ DAU
750M swipes / day
Anonymous social
network
3.5B page views / mo

31. Further, LA is tackling the hard technology
problems to lead the next revolution
31
Space VR / AR Power

32. Recap: the future is sunny in LA
Fastest growing tech ecosystem
Well-positioned for the three Cs:
Content, Commerce, Communications
32
Come join us!
Talent + Capital + Lifestyle
Big fundings, big exits, & big ambitions for
the future: space, energy, VR, & more

33. The Los Angeles
Technology Market