A Tale of Two Tech Cities – Silicon Valley vs. Los Angeles

Nov 23, 2008 12,390 Comments by

Is there a difference between tech startups in Silicon Valley vs. Los Angeles? Most emphatically, Yes!

I’ve spent the last year running a tech company based in Santa Monica, CA and I’ve spent countless weeks in the Bay meeting with hundreds of tech founders. As unreliable as stereotypes may be, these are my generalizations.

Bay area founders are amazing technologists. They build obsessively user focused products, do a fantastic job at virally driving a ton of traffic, but usually have their head up their ass when it comes to making money.

Los Angles founders are hustlers and deal makers. They are more focused on the bottom line and care more about their P&L than their products, which tend to be messy.

At parties in the Bay people talk about Twitter, Friend Feed, what’s being written on Valleywag and Techcrunch, and kickball games between VC’s and entrepreneurs.

At parties in Los Angeles people talk about a media deal they’re “closing”, what TV star is at the party, and some “gray hat” spam-like technique that made them an extra 100K last month.

Folks in the Bay are generally way more obsessive about their products, work harder/longer, can be a bit snobby about their accomplishments and tend to be clique-ish.

Folks in Los Angeles are shrewder business people, have better interpersonal skills, but are more full of shit and two faced, and struggle to build products that get virally adopted.

Some of the Entrepreneurs in the Bay I’ve learned the most from are:
Greg Tseng – smartest person I’ve ever met about user viral marketing and A/B testing
Michael Arrington – undeniably the hardest worker, obsessive about his product and content
Mark Zuckerberg & Reid Hoffman – hands down built the two best consumer internet applications on the web
Raj Kapoor – a hawk about understanding the metrics that drive the growth of online communities

Some of the Entrepreneurs in Los Angeles I’ve learned the most from are:
Kamran Pourzanjani – best deal maker and negotiator in the web space I’ve met
Matt Coffin – guru at scalable revenue models and identifying and exploiting profit centers
Peter Pham – best networker / connector in web 2.0
Jason Calacanis – master promoter of online buzz / controversy
Michael Jones – most intuitively curious and overall talented web entrepreneur in LA

Other than just trying to piss a bunch of people off for hyper-generalizing, there is an important take-away.

The next few years will be an economic apocalypse the likes of which most of us have never lived through before. Many are going to get washed away in the storm, while others will show their true colors and rise to the cream of the crop.

In order to succeed in the future, web entrepreneurs will have to learn how to incorporate the DNA of both Silicon Valley and Los Angeles.

The goal is to be monetization masters who are focused on consumers and build viral, capital efficient products, and to leave behind the full of shit, spam artists who are snobby about not making money.

Business, docstoc, Featured

About the author

Jason is the Co-Founder and CEO of Docstoc.com, the premier destination to start and grow businesses, offering the best selection of documents and content resources. Jason is also the creator of Startups Uncensored the long running and most widely attended tech mixer in Southern California. Before starting Docstoc, he was a partner in a venture consulting firm in Los Angeles where he worked with dozens of startups. Jason holds a BA from UCSB and his JD/MBA from Pepperdine University, where he was the Student Body President of both Universities.

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    able to|be capable of} {easily|without difficulty|effortlessly|simply} {understand|know|be aware of} it, Thanks a lot.|
    {Hi|Hello} there, {I found|I discovered} your {blog|website|web site|site} {by means of|via|by the use of|by way of} Google {at the same time
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    {I have|I’ve} bookmarked it in my google bookmarks.

    {Hello|Hi} there, {simply|just} {turned into|became|was|become|changed into} {aware of|alert to} your
    {blog|weblog} {thru|through|via} Google, {and found|and located} that {it is|it’s} {really|truly} informative.

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    you|should you|when you|in the event you|in case you|for those who|if you happen to} {continue|proceed}
    this {in future}. {A lot of|Lots of|Many|Numerous} {other
    folks|folks|other people|people} {will be|shall be|might be|will probably be|can be|will likely be} benefited {from your|out of your} writing.
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    {I am|I’m} curious to find out what blog {system|platform} {you have been|you happen to be|you
    are|you’re} {working with|utilizing|using}? I’m {experiencing|having} some
    {minor|small} security {problems|issues} with my
    latest {site|website|blog} and {I would|I’d} like to find something more {safe|risk-free|safeguarded|secure}.
    Do you have any {solutions|suggestions|recommendations}?|
    {I am|I’m} {extremely|really} impressed with your writing skills {and also|as well as} with the layout on your {blog|weblog}.

    Is this a paid theme or did you {customize|modify} it yourself?
    {Either way|Anyway} keep up the {nice|excellent} quality
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    days|nowadays|today}.|
    {I am|I’m} {extremely|really} {inspired|impressed} {with your|together with your|along with your} writing
    {talents|skills|abilities} {and also|as {smartly|well|neatly} as} with the
    {layout|format|structure} {for your|on your|in your|to your} {blog|weblog}.
    {Is this|Is that this} a paid {subject|topic|subject matter|theme} or did you {customize|modify} it {yourself|your self}?
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    {it’s|it is} {rare|uncommon} {to peer|to see|to look} a {nice|great} {blog|weblog} like this one {these days|nowadays|today}..|
    {Hi|Hello}, Neat post. {There is|There’s} {a problem|an issue} {with your|together
    with your|along with your} {site|web site|website} in {internet|web} explorer,
    {may|might|could|would} {check|test} this?
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    and {a large|a good|a big|a huge} {part of|section of|component to|portion of|component
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    will {leave out|omit|miss|pass over} your {great|wonderful|fantastic|magnificent|excellent} writing
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    Thanks for {great|wonderful|fantastic|magnificent|excellent} {information|info} I was looking for this {information|info} for my mission.|
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