Startup Activity Slows in First HalfTuesday, July 16, 2013
Startup activity has slowed in Los Angeles from last year according to a report released Monday from tech community group Built In Los Angeles.
The report, which looks at the first six months of the year, found that 94 startups formed during the period.
Built In Los Angeles did not release a mid-year report in 2012 so there's no direct comparison. But the group's full-year report showed 220 startups formed. With well less than half that number formed in the first half of this year, the city is on pace to fall below last year's level of activity.
The mid-year report also noted that nine companies, including mobile payments startup Mogreet and YouTube network AwesomenessTV, were acquired during the period. More than 40 companies were acquired during 2012.
However, funding is strong. Collectively, more than 90 tech companies raised $500 million during the first half of the year. Of those, 22 raised more than $5 million each. They included video messaging startup Snapchat, private airline Surf Air and YouTube network Fullscreen.
In 2012 companies raised a total of $870 million. So if funding continues at its first-half rate for the full year, it will surpass last year.