This year, funding for Los Angeles-based tech companies hit over $4 billion, which is double from just two years prior. Two-thirds of the deals have been for seed and Series A funding, which demonstrates the amount of room available for growth. While Los Angeles is home to a wide array of venture capital firms, including 500 Startups, Upfront, Greycroft, Crosscut and Mucker, many startups are still looking for additional funding.
Los Angeles is on the cutting edge of crowdfunding, and while most of the growth is in equity crowdfunding, there’s also a lot happening in the reward-based crowdfunding scene. The city is home to Crowdfunder’s CEO who helped draft the JOBS ACT legislation, Start Engine that was among the first to submit a company for A+ crowdfunding and CrowdfundX established in Silicon Beach.
As part of Agency 2.0, the industry’s leading crowdfunding agency that has raised over $30 million for its clients, I’ve seen many Los Angeles-based startups reach success on reward-based crowdfunding platforms Kickstarter and Indiegogo. Various clients of ours have reached the $1 million-plus mark, and we expect to see many more LA startups utilizing reward-based crowdfunding to secure financing as well as market validity.
As more startups look towards crowdfunding, our LA agency has seen the following products reach $700,000 plus in funding over the last year:
Bonjour - A sleek IoT alarm that has the intuition of an AI device, anticipates and interacts with the sleep-ly enamoured and slow to rise.The sleek voice-controlled device, features connectivity to IoT devices and services such as Nest, Spotify and Amazon Echo, with natural delivery and advanced intuition for easy and enjoyable morning wakeup.
Fizzics - Revolutionizing the way people drink and enjoy beer, Fizzics Micro-Foam™ Technology platform scientifically enriches the aroma, flavor and taste of beer, while protecting its integrity. Combined with elegant hardware, the Fizzics technology has been incorporated into Waytap, the first in a new line of consumer-facing products to improve the way people enjoy beer.
Omnicharge: Smart & Compact Portable Power Bank - Whether a commuting professional, traveling adventurer or the host of a party, Omnicharge allows true freedom on the go. The world’s smallest power bank with 1 AC/DC power outlet and 2 USB fast-charging ports, the Omnicharge intelligently charges any device, knowing what is connected and the optimal charge for each device. You can recharge Omnicharge with any commonly found charging device, even while charging other devices.
Many startups have found success in Los Angeles, as the nation’s third-ranked startup ecosystem. The city is home to a number of pioneers of the crowdfunding movement, making it the birthplace of many successful campaigns. I have no doubt that with the ample resources available, we will see more innovation coming out of Los Angeles both in the equity as well as reward-based crowdfunding space.
