How Snap’s IPO Boosted Confidence in LA’s Startup Ecosystem

Following the success of Snap’s (formerly Snapchat) IPO in the LA market, a significant shift in confidence occurred among entrepreneurs and venture capitalists. Founded by Evan Spiegel in Venice Beach, LA, Snap’s IPO on March 2, 2017, had a profound impact on the local startup ecosystem.

At its peak, Snap’s market cap reached over 40 trillion won, making it the third-highest market cap company in the LA area, after Disney and Amgen. This achievement instilled confidence in LA entrepreneurs, who began to envision bigger dreams and aspirations for their own companies. The success of Snap’s IPO proved that a multi-trillion dollar company could be built and taken public in LA, rather than requiring a move to Silicon Valley or other tech hubs.

One notable change following Snap’s IPO was the increased interest in entrepreneurship among students at Caltech, located northeast of LA. Traditionally, Caltech students were more focused on research and academia, but the success of Snap’s IPO inspired a new generation of entrepreneurs. This shift in mindset brought about positive changes and confidence in LA’s startup ecosystem.

The wealth created by Snap’s IPO also had a ripple effect, with investors becoming more confident in the LA ecosystem and providing more capital to local startups. Many Snap employees became millionaires, and some went on to create their own successful companies, invest in other startups, or establish accelerators and VC funds. This created a virtuous cycle of entrepreneurship and investment in LA, similar to the infrastructure found in Silicon Valley.

The confidence boost in LA’s startup ecosystem was not limited to Snap’s employees. The rapid growth and success of other companies in the area also contributed to the growing sense of confidence. As this cycle repeated itself, LA began to form a thick infrastructure of entrepreneurs and investors, leading to an explosion of confidence in the local startup ecosystem.

A similar phenomenon is beginning to emerge in Korea, with companies like Toss and Market Kurly poised for success. A successful IPO for Toss could have a profound impact on the Korean startup ecosystem, inspiring a new generation of entrepreneurs and investors.