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7/29/2019 LAMCII Leading Edge 2012

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LOS ANGELES:

The Leading EdgeDecember 2012 Update


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NARRATIVE

CAPITAL

POLICY

NETWORK

EDUCATION

IntroductIon2

40 next StepS

10

16

22

28

34


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The true story oLos Angeles hasyet to be told.


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5

Even the Internet was born in LA when Proessor Leonard Kleinrock activated

the rst node and sent the rst message in the all o 1969 on the UCLA campus.

Today, Los Angeles ranks as the third best city in the world or startups. 1 Los

Angeles-based incubators are ostering the next generation o entrepreneurs,

with access to vast resources rom the local aerospace, biomedical, entertain-

ment, design, interactive, and clean-tech industries, all backed by a passionate

and growing community o angel investors and high net-worth individuals.

Robotic Exploration o Mars

Space Shuttle

Plastic Frisbees

Stealth Bombers

Electric Guitars

CD Algorithms

Skateboards

Aeron Chairs

Hot Wheels

Domain Names

Cobb Salads

Strapless Bras

Here are some LA frsts:

Things happenin Los Angeles.

1 Startup Genome November 2012 Startup Compass

* Mars Rover courtesy NASA/JPL-Caltech.


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Why is LA not

known or theentrepreneurialinnovation thatis its lieblood?

One year ago, twenty-ve o us partnered with Los

Angeles Mayor Antonio Villaraigosa and his sta to

answer this question and identiy ways that we could

help Los Angeles grow.

We wanted to understand:


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t vl a

aiabl la

hl LA ak h

ighl la as a

ivai

wih a iq a

ivs vi.

The Councils Goal:

Composed o a diverse independent group o business, academic, and

proessional leaders rom across LA who are passionately committed to

the growth o our city, we embarked on our journey in March o 2012.

Each member committed to not only help build the plan but to take actionand create real impact immediately. We split into a number o working

groups that each addressed a dierent aspect o our challenge.

Were excited to share the output o our eorts in the pages that ollow.

SINCE MARCH 2012, WEVE:

Expended

2000+hours o research

Spent

700+man-hours in working sessions

Reviewed

4000+pages o reports, studies & articles

Consumed

32+gallons o coee & tea


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NARRATIVELAs InnovAtIon IdentIty & how It Is communIcAted


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131313

WHAT IS A SUCCESSUL NARRATIVE?

A successul narrative is more than a tagline or memorable jingle

it is a compelling story that rings true to all that hear it.

A successul narrative is simple.

A successul narrative does not advertise to an audience

it engages and creates true advocates.

A successul narrative builds irresistible connections and prompts

people to act.

The tagline comes later.

NARRATIVE

o gal is a a

mllig a al sy

LA ha fs i as h g-

la bsiss ivai

a amally hags

ls i i,

sig his iy is i h

h lis must-consider

lais al, ivss,

bsisss, a s.


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While LA does have some real challenges that need to be addressed,

such as taxation, bureaucracy, and transportation, it has as many issues

based on perceptions that are no longer or have never been true.

2 Travel & Leisure magazine,American Style Magazine, MarketWatch

3LA Times

4 Brookings Institution

5 LAEDC

6 Citygroups Hot Spots Report

7 US Census BureauAmerican Community Survey

34thout o 34 or

Saety

35thout o 35 or

Public Transportation

34thout o 35 or

Intelligent People

61stBest US City or

Business

12thout o 25 Big Cities

or the Arts

#2Saest Big City

in the USA3

#1City or Public Transit

Access in the USA4

#1County in the

USA or PhDs5

#6Best US City or

Business

6

#2in the Number

o Artists7

Perceptions2

Truths

LA a ala a

i a la

aazi iai a

l-ai ia a

l aii.

LA is wh ams, aiviy, a

bsiss s hag h wl.

this aaiv is l hgh mlil

visliiias, mia, lbiis,mmas, bsiss las,

vi, a yoursall shaig h

sy a vy iy.


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CAPITALthe roLe o InAnce In LA


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CAPITAL

o gal is imv ass

aial LAs gwh

mmiy s ha i is m

i li wih h iis

ha ly is.

8 CNN Money 2007

9 Startup Genome November 2012 Startup Compass

While LAs shining successes prove what is possible, the data clearly show

that LA is underserved when it comes to capital availability. There are many

theories as to why, but the bottom line is that there is real opportunity in our

backyard or those who are aware o it. And while our new growing narrative

will help, there are things that we can do to help accelerate LAs growth.

h a j a a a x ai i

caial i LA:

LA has a large quotient o high net-worth individuals. Excluding real

estate, 23% o Caliornias millionaire households are in LA County8.

LAs large city-employee pension unds do not substantially invest in

LA-based venture-capital rms. There may be as much as $100-200

million available or investment rom this alone.

LAs existing incubators and startups are an excellent value or new

tier-1 venture capital because9: LA startups go ater large, totally addressable markets

63% o LA entrepreneurs have previous experience in the market

their startup is targeting

The user base o LA startups has 40% more paying customers

than that o their Silicon Valley counterparts


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HERES WHAT WE ARE DOING:

LA Lai e Aa is an annual showcase o the worlds most

innovative ideas. Entrants are accepted online rom anywhere around theglobe. Multiple rounds o judging narrow the entrants down to a shortlist o

nalists that are then evaluated by a panel o credible luminaries to determine

the nal awards.

The goal o the Leading Edge Awards is to highlight our narrative by

attracting brilliant entrepreneurs and edgling companies to LA and oering

them a home rom which to launch their success.

LAs Leading Edge Awards will begin accepting entrants in the spring o 2013.

More inormation will be available shortly at http://edge.la.

1. Council members are reaching out to the greater

VC community and local high net-worth individuals

to share the narrative about the creativity and

opportunity that exist in LA.

2. With the assistance o Mayor Villaraigosa, the

council is educating LAs pension unds about the

opportunity within the city and encouraging them to

invest in our local growth and innovation sector.3. The council launched LAs Leading Edge Awards to

promote and und innovative companies that make

LA their home.


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POLICYthe reLAtIonshIp between busInessAnd government In LA


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POLICY

o gal is hl lal

gvm lay a m

aiv a imal l i

sig a gwig LAs

ivai sysm.

The mayor and his ofce have been engaged rom the very beginning,

and together were working to identiy the opportunities to make local

government work or innovators and growth businesses.

Were aligning the interests o growth and innovation with business and civic

leaders. Were utilizing city resources to embrace and enhance LAs unique

geographies in common-sense ways that will make it an even more exciting

and riendly place rom which to change the world.


1. Extended a three-year extension or the exemption

rom gross-receipt taxes or new businesses.

2. Proposed ways in which to leverage earmarked

Federal-grant unds or job creation and retention

and utilize them to drive new-economy job growth.

3. Reached out to international trade partners in South

America and China, including a trade mission with

Mayor Villaraigosa to South America.

4. Developed a strategy to connect the growth o new-

economy jobs in West Los Angeles to South LA andDowntown by ocusing on the Expo Light Rail Line.


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20

The city has experienced a substantial growth

in jobs and start-up companies throughout,

but especially in West Los Angeles. With the

development o the Expo Line, there is a unique

opportunity to connect the city rom East to

West and allow or innovation hubs to develop

all along the corridor. The Expo Line connects

talent, businesses and two o the citys premier

educational institutions. This provides the

opportunity to not only easily move people

but to move ideas, jobs, and companies.

There are several city-owned parcels that can

be leveraged in a public-private partnership

to create Innovation Hubs along this transit

corridor. These Hubs will provide world-class

physical space or startups and new-economy

businesses. We are working with USC and

UCLA to become cornerstone tenants,

co-locating their incubation eorts at one

o these locations. The goal is to create

next-generation working environments: tech-

riendly amenities, quality community space,

80,200 q. .w dii ta ya

Los Angeles

220,180 q. .J ta ya

Los Angeles

8,700 q. .ta ya

Venice

4,600 q. .paik mia

Venice

40,000 q. .Aial sl

West LA

109,200 q. .w LA miial c

West LA

14,000 q. .w e

West LA

20,600 q. .w villa

Westwood

1,300 q. .o ta

West LA

153,000 q. .w dii ya

West LA

4,881 q. .i sai #43

Palms

84,500 q. .36 s. ya

Los Angeles

ex Li

hands-on workshops, ood, cycling resources, art

space, and maybe even a home or LAMCIIs eorts.

Innovation will happen when companies and

people o all types are connected together

in a connected community, with easy

public-transportation access rom

downtown to the beach.

We call it the (t)expo line; we consider

it transformative or LA.

80,200 q. .w dii ta ya

Los Angeles

220,180 q. .J ta ya

Los Angeles

8,700 q. .ta ya

Venice

4,600 q. .paik mia

Venice

40,000 q. .Aial sl

West LA

109,200 q. .w LA miial c

West LA

14,000 q. .w e

West LA

20,600 q. .w villa

Westwood

1,300 q. .o ta

West LA

153,000 q. .w dii ya

West LA

4,881 q. .i sai #43

Palms

84,500 q. .36 s. ya

Los Angeles

ex Li


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NETWORKthe LocAL InnovAtIon LAndscApe AndIts cuLture


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NETWORK

o gal is hl

s f LAs

ss a iviy

ls i s

h aal gwh is

ivai sysm.

Our city is diverse and distributed, and thats part o what makes

it awesome. Every neighborhood in LA has great things happening

organically within its own sub-community. Los Angeles has many meet-

ups, associations, accelerators, incubators, mentorships, and networking

programs. The challenge is that they are spread out and hard to nd.

LAMCIIs intent is to provide connective tissue or the various groups

that are already doing a antastic job o moving LAs innovation

agenda orward. Embracing LAs unique geography and digital

diversity, we envision resources that make it easy or entrepreneurs

to identiy and connect with our citys bountiul opportunities.


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Makig i asy navigate LA.


Launching Edge.LA, which will house a comprehensive directory

making it easy or anyone to nd the various valuable resources in LAs

innovation ecosystem.

Working with brokers and developers to create standards and a LEED-

style ratings system or tech-riendly commercial real estate.

Creating the Edge.LA Ambassador Program, with 25 mayoral

appointments charged with serving as conduits between the city and

the various business and geographical sectors o LA.


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EDUCATIONthe IntersectIon o busIness And LAseducAtIonAL InstItutIons


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373737

EDUCATION

o gal is lvag

laishis wih

ivsiis ha will

gw h ial

sysm, imv ass

al, a a b

iis ss.

We are sitting on a gold mine o human capital. LA County produces more

graduates and has more residents holding PhDs than any other in America.10

Our universities are world-renowned, home to Nobel laureates, MacArthur

ellows, and members o the National Academies. And our architecture and

design schools have been changing the way the world lives, drives, and

dresses or decades.

What LA lacks is a strong connection between our academic and business

communities. Since 2008, 54% o UCLAs engineering graduates have chosen

to relocate. This creates the perception that there are not opportunities

in LA or the best and the brightest, and we know thats not the case. We

must make sure that our innovation industry has a direct connection to our

universities and colleges, creating a uid exchange o learning and labor.


1. Growing innovation hubs at our local universities.

Startup UCLA was ounded in 2012 in partnership

with PwC.

2. LAMCII will track and publish an annual talent-

retention index with year-over-year comparisons to

gauge i were heading in the right direction.

3. The Edge.LA Fellowship Program is a centralized

hub that will eed qualied LA graduates into exciting

positions at growth companies.

10 LAEDC


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There is an imperative to strengthen the connective tissue between the

nearly 1.1 million college students and businesses in the greater LA area*. We

need this or a number o signicant reasons. First, as LAs entrepreneurial

ecosystem grows, so does its need or talent. In a survey o the 25 council

members and the companies that they represent, we counted over 500 (!)open positions.

Second, the relationships between the students and the companies creates a

spiderweb o connections that transcend LAs sprawling geography. We can

imagine no single greater impact to the citys innovation network than this

program. Businesses benet rom the imagination and talent o our students.

Students benet rom the opportunity to get real-world, hands-on experience

to enhance their value in the job market. The city benets rom lielong bonds

that orm between all involved.

For these reasons (and many others) we created the Edge.LA Fellowship

Program. When in ull swing, the Fellowship is the one-stop shop that

connects the opportunities that exist in local businesses with students who

are looking or meaningul experiences. Companies post opportunities

in a single location rather than having to navigate each o the universities

independently. Students get access to a wider array o experiences in a

single location.

The structure o the program makes this easy or all involved. Digital

technology acilitates simple submitting, applying, and initial review.

Block-scheduled virtual interviews expedite mutual triangulation. Uniorm

procedures build a uid process or the nal matchmaking. Supportive

oversight ensures high quality experience or all involved.

Launching in 2013, the Edge.LA Fellowship Program creates an

unprecedented city-wide conduit or students and businesses and paves the

way or the entrepreneurs o tomorrow.

* LA is the 2nd largest college town in America. The AtlanticCities.com 2012


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WHATS NEXTLAmcII a ali a l i i a. w aiz

il, xai a, iif k aa

i, llaa ial iiiai, a a

i i. I 2013, ill . w

l lik a il.

i a , ak a ia aai bl

caii i a a ik a alk a LA. ti i l

a a ill a li i. bi

i i ai, i i i a i, a li i a

la, i ai. y i LA ill l l iz a a i.

I a if iiiai ia a lik i

a l, a li a i@laii.. o

aili a ia i il i a a.


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cil Mmbs(In Alphabetical Order)

Frank Addante

Ravi Ahuja

Mitra Best

Paul Bricault

Brendon CassidyRandy Churchill

Martha Corbett

Gil Elbaz

Brian Garrett

Todd Gitlin

Zorik Gordon

David Hernand

Krisztina Z Holly

Scott Lahman

Brett Markinson

Howard Marks

Jim McDermott

Leslie Michelson

Sean Moriarty

Jim OMahony

Al OsborneScott Painter

Jimmy Pitaro

Kamran Pourzanjani

Robin Richards

Je Stibel

Bill Woodward

Zack Zalon

Mayor Antonio Villaraigosa

Deputy Mayor Matt Karatz

Book Design

Wilshire Axon:

Alex LouieShane Snoke

Juraj Vojnik

Mary Evdjukian

Charles Kim Jr.

Leo Amos

Maidel Margulies

Printing

JNK Services Inc.

Thank You

Amy Amsterdam, Wilshire Axon

Cheryl Forbes, PwC

Nick Davis, PwC

Chris Pearson, LA Mayors Ofce


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Contact: [email protected]

2012 LAMCII