Today I met with the founders of a Silicon Beach success story – Invested.in. After graduating from accelerator Amplify.la and raising some funding, they struck out on their own with an office in downtown Santa Monica. Invested.in is a social crowdfunding platform-as-a-service (their tagline is ‘We Power Crowdfunding).
Yadid Ramot and Alon Goren sat down with me over some lattes and passion fruit tea to talk about the pros and cons of a startup in Los Angeles.
What are the issues with starting a technology company in LA?
Yadid- “Its really hard to find developers, and the recruiting costs are very high. Its also too easy to start a company here, there are too many accelerators and incubators now.”
Do you think flood of startups will change?
Yadid – “The money will run out.”
Alon- “It comes in waves. As big companies like Google come in, accelerators will slow down. Whichever startups survive will end up hiring their friends.”
Why did you pick LA over San Francisco?
Yadid – “LA is a good environment to be in, you get a lot of support. In the Bay Area there is a stronger sense of competition, even if you have two completely different concepts.”
Alon- “It doesn’t matter where you are when you start a company. Its easy for us to go back and forth to the Bay Area, but even when we were fundraising there really wasn’t a need to go up North.
Alon- “LA has an awesome tech community. We are friends with all the accelerators and incubators. There are events almost every day.”
What do you love about LA?
Alon – “I was born and raised here, I love it.”
(Yadid wasn’t as big of a fan, but he hasn’t left yet so we think he may be an Angeleno at heart. )
By recently opening a development shop in Israel, where Yadid was born, they managed to overcome the developer drought. They started by hiring two developers, and have plans to hire more. They are already receiving resumes in from friends and referrals. Don’t we wish it was that easy here in the states?
Invested.in recently started working with the Global Philanthropy Group and a few celebrities (Avril Lavigne and Eva Longoria to name a few). They will continue to help non-profits, individuals, and other businesses raise money. If you are interested in interning for Invested.in please send an e-mail to firstname.lastname@example.org