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There are certain topics that even some of the smartest people I talk with who aren’t startup oriented can’t fully grok. It’s common cocktail party chatter to hear people confidently pronounce that some well known startup is sure to blow up because, “How could they succeed when they’re not even profitable!” Not necessarily.

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Let me start with the obvious baseline that most people probably know instinctively: Los Angeles is the 3rd largest technology startup ecosystem in the US. Given how efficient markets are when a large market like LA starts to blossom it attracts capital pretty quickly. He built & IPOd Demand Media. LA By The Numbers.

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Our social graphs are locked in Facebook, Twitter and Snapchat. In a world where perhaps foreign governments start propagating false information to influence our society, guaranteeing authenticity would become a very big deal. Distribution of media is tightly controlled by YouTube, Netflix, Facebook, Amazon and a handful of others.

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