Home > Uncategorized > Suddenly, Hollywood Is A Startup Hotbed – Business Insider

Suddenly, Hollywood Is A Startup Hotbed – Business Insider

September 15, 2012 Leave a comment Go to comments

There’s something brewing in Los Angeles.

Suddenly, Hollywood has becoming a startup hotbed.

Incubators and accelerators are popping up everywhere. Venture capitalists are becoming frequent fliers at LAX. Celebrities are stamping their names on new companies. And TV industry executives are quitting their jobs to become entrepreneurs.

In many ways, Los Angeles looks like New York City did three years ago. One early-stage investor, Gary Vaynerchuk, thinks LA will eventually trump both New York and San Francisco as the ultimate location for startups.

Although it doesn’t have a crop of billion-dollar startups like Silicon Valley has in recent years, it’s a thriving environment that shows a lot of promise.

We spoke with entrepreneurs and investors who are deeply embedded in the Los Angeles tech scene to find out what’s going on in southern California.

Recycled capital and repeat entrepreneurs are fueling the fire

Why did Silicon Valley take off?

Because successful entrepreneurs didn’t walk away or retire with their millions—they stuck around and started new companies or became investors.

In the same way, LA entrepreneurs from the early 2000s are creating and funding startups today.

Bill Gross, for example, created Overture. It was a search-ad company that presaged Google’s ad business, and was bought by Yahoo for $1.63 billion. It came out of his Idealab incubator, which has founded more than 100 companies.

Applied Semantics, a Santa Monica-based company, was acquired by Google for $106 million in 2003. Its founder, Gil Elbaz, has created one of LA’s most promising new startups, Factual.

CitySearch, an early predecessor to Yelp, was formed in southern California. Myspace may not be doing well today, but it produced entrepreneurs like Richard Rosenblatt, who’s now running Demand Media in LA.

Douglas Merrill, a Princeton PhD and the former CIO of Google, relocated to Los Angeles and raised $73 million for his startup, ZestCash.

All of these winners from the first dotcom boom are putting their money into the new LA startup ecosystem.

via Suddenly, Hollywood Is A Startup Hotbed – Business Insider.

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