Media, Software, & Wellness Companies Among the Largest Categories
In an analysis of over 175 startups in Silicon Beach, the technology capital of Southern California, Mediakix found the companies to be worth over an estimated $155 billion in valuation.
Spanning from Santa Monica to the Los Angeles Airport, and from Venice Beach to the Hollywood Hills, Silicon Beach is home to a diverse collection of innovative tech companies. This Silicon Beach map illustrates several of the largest concentrations of startups throughout the Los Angeles region.
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Media, Tech, Health, and e-Commerce Thrive In Silicon Beach
Although it’s tricky to pinpoint the exact moment when Los Angeles became a bonafide “tech hub,” many industry titans cropped up around the early 2000’s. Social network pioneer, Myspace, launched in Beverly Hills in 2003, while Yahoo! and Google opened their Santa Monica locations in 2005 and 2006, respectively. Rubicon Project launched in 2007 and would go on to become one of the largest players in the ad tech industry. By the time Snapchat (currently Snap Inc.) launched in 2011, the term “Silicon Beach” had stuck for good.
While Bay Area tech companies lean towards pure technology products (think mobile apps and social media networks), Silicon Beach fosters more diversity in its offerings, such as gaming, media, and on-demand technology services.
Entertainment is Los Angeles’ flagship industry, thus companies that bridge media and technology like Hulu, ZEFR, William Morris Endeavor (WME), and AwesomenessTV have thrived. According to our analysis, entertainment and media companies represent 21% of Silicon Beach, the largest percentage of any single business category measured. Note that this excludes Netflix, which has a Los Angeles location but is headquartered—and originates—in Northern California.
LA’s devotion to health trends also leads to a greater focus on wellness, pharmaceuticals, and healthcare solutions, spearheaded by companies, such as Headspace, Ritual, and Puma Biotechnology.
Giants Like Snap Inc. and SpaceX Tip the Scale
When breaking down funding by category within Silicon Beach, a slightly different picture emerges. Social companies (consumer-facing platforms, networks, or digital tools that connect people or support them in connecting with others), appear to attract an outsized percentage of Silicon Beach funding. However, this percentage is dramatically impacted by Snap Inc., which represents over 90% of funding to the Social companies tracked in this study.
Methodology: Valuation of Silicon Beach Startups
Mediakix defines the Silicon Beach map region as any company headquartered in Los Angeles County. Startups in nearby areas like Orange County or the Inland Empire were not considered in our study. We developed a list of 177 of the most established, promising startups and companies in the region that met these funding criteria:
- Most recent round of funding in 2015 or later
- Minimum total funding of at least $5,000,000
This comprehensive list was compiled through exhaustive online searches of news articles, top lists, and venture capital portfolios. This list includes active companies, acquired companies, and public companies. It excludes bankrupt brands and acquired businesses that were either dissolved or closed. We profiled each company by:
- Location of headquarters
- Total funding amount
- Recent funding round
We obtained the specific amount of funding for each company using 3rd party databases, news articles, and official statements and reports from the companies themselves. In a region with hundreds of companies launching, being acquired, or going bankrupt every week, we wanted to determine a uniform valuation that is inclusive of companies in every stage—from seed funded to publicly traded.