How Snap Inc. With Near $28B IPO Value Is Changing The Startup Landscape In Southern California

Snapchat co-founders Bobby Murphy, left, and CEO Evan Spiegel ring the opening bell at the New York Stock Exchange as the company celebrates its IPO, Thursday, March 2, 2017. (AP Photo/Richard Drew)

Snap Inc. went public today with a nearly $28 Billion valuation after pricing their IPO. It is the largest tech offering since Alibaba in 2014, many are hailing Snap Inc’s IPO as a revival of major tech exits. Co-founder and Chief Executive Officer Evan Spiegel and Chief Technology Officer Robert Murphytogether have made billions – and their life in public market just started.

In many ways the company is similar to Twitter and Facebook. But what makes Snap Inc. so unique is their style. Headquartered in Venice Beach, Southern California, they have the LA swagger walk, talk and the hip style that creates a little more edge to the whole company. And, the LA style of thinking and delivering services to the new generations of consumers. I say – they have a good chance of differentiating themselves and growing post IPO.

I think the fact that they are located in LA (headquarters in Venice Beach) and not in Silicon Valley, is in itself a game changing. I spend most of my time between San Francisco and LA and work with entrepreneurs in both locations. LA has a lot to offer to the new generation of entrepreneurs.

1. 1. Silicon Beach: A high tech software center – resembling Silicon Valley. It covers the area from Santa Monica all the way to Manhattan Beach.
   2. Hollywood: The startups in fashion and entertainment are mostly located in downtown LA. This gives them easy access to the celebrities that can help them spur rapid user growth.
   3. Pasadena: Many science related startups are near Pasadena with CalTech offering access to their students, professors and academic IP. A plethora of other healthcare related startups are all over Orange County.

Now Snap Inc. is brining a major change to this ecosystem – credibility and resources. In a similar way to how Intel and Cisco created what we today know as Silicon Valley, Snap Inc. is fundamentally changing the Southern California area. Their exit will not only provide IPO value to the investors and employees, but it will also create a rich ecosystem of talent for the next billion dollar companies in Southern California. Moreover, it’s giving the region the credibility it was previously lacking. Now, if you have a business plan and you are located in Venice Beach, you will get that call back from the top VCs.