The 2013 startup report below, released by Built In LA, includes yearly data proving that LA’s digital ecosystem is quickly living up to its hype. In fact, LA’s digital startups aren’t just keeping pace with past performances, but are exceeding them: a total of over $1 billion was raised for the first time in 2013, a bump up from 2012 when $871 million was raised. Additionally, the 25 digital companies that were acquired in 2013 generated over $1.1 billion.
The biggest players of last year come as no surprise. JustFab, the fashion membership company that raised the most in 2012, continued its strong performance in 2013 with two rounds totaling $55 million. Content delivery network Edgecast Networks had an outstanding year too with a $54 million round in July, just a few months before getting acquired by Verizon for $350 million.
And then of course, there is Snapchat, the real-time messaging app that raised the most capital in 2013. With $123 million raised throughout the year, Snapchat undoubtedly gave LA’s digital startup scene a boost, causing consumers and investors alike to turn their heads.
But it’s not just the big guys that made up 2013’s impressive stats: over 100 companies each did their part and raised $1 million or more in capital.
These companies represent all digital sectors, including 47 software companies that made a big local impact with $304 million raised in total. Fifty-three consumer web businesses, which in total raised $273 million, also added hard-earned pieces to the overall puzzle.
Calling the report’s findings “great news for Los Angeles,” Mayor Garcetti said: "I look forward to working with more entrepreneurs to help them start companies, grow and thrive in Los Angeles.”
And the entire country is taking notice as signified by the over 150 different investors backing local companies in 2013. It’s no wonder that LA’s digital ecosystem is drawing more attention as a whole: the community’s accomplishments demand it.
"When you consider the rate of new company creation, the healthy financing environment and the exits demonstrated in 2013, it's clear that LA's digital ecosystem is in a virtuous cycle,” DFJ Frontier Managing Partner Scott Lenet said. “The latest Built In LA report shows nice trends in the continued growth of Los Angeles' equity economy and entrepreneurial culture."
Please direct all press inquiries to firstname.lastname@example.org