Why Los Angeles Should Have a Startup Fund • Hacker News Board

Re: Why Los Angeles Should Have a Startup Fund

#11

Post by tajddin » Fri, Jun 10, 2011, 12:54 AM UTC

slapshot wrote: post #4

sparkygoblue wrote: post #2

As someone who lives in LA and is currently bootstrapping a startup, I would love to see more $$ poured in to the LA startup scene. It seems like LA has largely been ignored by VC and angel investors.

LA is no Silicon Valley, but there is more money floating around SoCal than you think. I assume you've checked in with the Tech Coast Angels ( http://www.techcoastangels.com/ ) and some of Frank Peters' contacts? There's also an event next week for LA startups: http://community.intellicontact.com/p/fundingpost/newsletter...

Do you have any experience attending the event that's being held next week? What's the turnout like?

Re: Why Los Angeles Should Have a Startup Fund

#12

Post by jonallanharper » Fri, Jun 10, 2011, 2:07 AM UTC

Another terrible idea from a state bankrupt from terrible ideas.

Re: Why Los Angeles Should Have a Startup Fund

#13

Post by jonallanharper » Fri, Jun 10, 2011, 2:11 AM UTC

gersh wrote: post #8

slapshot wrote: post #3

Letting politicians decide which startups get funded and which don't seems like an inevitable way to let politics get in the way of merit: - Politically-connected startups get funded first - Political goals other than merit (diversity, "social justice," etc) are used as criteria - Arbitrary political limitations get placed on the company ("you can't do business with anyone who [performs abortion | does business in Li…

They could do a matching fund, or provide tax incentives.

Or, they could do something towards actually solving the state budget problems and just fire themselves.

Re: Why Los Angeles Should Have a Startup Fund

#14

Post by rwhitman » Fri, Jun 10, 2011, 2:25 AM UTC

LA has tons of tax breaks for new and small businesses. As a new business or one making less than $100k you pay no city taxes at all.

I have actually been quite surprised by how accommodating such a large city was in facilitating tax breaks towards starting my business there. The city clerks actually called me up and helped me file for deductions after I had completely missed deadlines.

Anyhow the problem with LA as a startup culture has a lot to do with the proximity of Hollywood. People dream big, and have a tendency to ignore the more pragmatic aspects of building a business over the long term. Businesses in LA tend to go big and flame out very quickly. It doesn't help that its relatively common for LA startups to be funded by dumb money from someone who made their bucks as a big dreamer. LA is unique because of its lack of tempered pragmatism, but unfortunately and ironically I feel like for a startup culture, thats its undoing...