Los Angeles leaders seek civic engagement in the technology industry
Los Angeles leaders seek civic engagement in the technology industry
LOS ÁNGELES: the technological sector of this city has grown in the shadow of Silicon Valley, and even earns its name, Silicon Beach, after its most famous and successful brother in the north.
But today, Los Angeles is looking in Silicon Valley for lessons on how not to grow.
Homelessness, inequality and congested streets are some of the problems faced by the nation's technology-driven economies, from Seattle to San Francisco, prompting Questions about the responsibility of prosperous local companies. to help prevent or address them.
In Los Angeles, where lack of housing in particular is a persistent problem, civic and political leaders are trying to work with technology investors and companies to address these problems together before they get worse.
A project of the Annenberg Foundation, a philanthropic family foundation and the city of Los Angeles solicits commitments from venture capital firms and technology businesses to become more involved in their communities and build more diverse work forces.
So far, 82 have signed into the project, called PledgeLA, which includes Dollar Shave Club and Hyperloop One. Their commitment includes working with non-profit community organizations and seeking technology-based solutions for local challenges, such as traffic and the House.
Crosscut Ventures, a venture capital firm committed to the effort, is based near the beach in Venice, California. The executives said that the entrepreneurs who launch them for multimillion-dollar investments have to go through the camps of homeless people to reach the front door.
"That certainly leads to the desire to try to solve problems in our own community," said Rick Smith, co-founder of Crosscut.
Los Angeles Mayor Eric Garcetti said he has been talking to technology executives about how they can bring new ideas to one of the city's biggest problems: building homes for the homeless more quickly.
"It's one of the least interrupted industries: construction," said Garcetti.
Although still dwarfed by VC's investment in San Francisco, the Los Angeles home scene has experienced a boom in recent years, bringing in notable names like Snapchat and Riot Games, the creator of the hit game, League of Legends. Venture capital financing in the city increased 132% between 2013 and 2017, according to city figures.
The parent company Snap Inc. has not yet agreed to sign the new project, according to a company spokesperson.
PledgeLA is targeting venture capitalists because it aims to promote a sense of citizenship in technology companies right from the start, said Cinny Kennard, executive director of the Annenberg Foundation.
The organizers said they plan to follow the progress of the participating companies through an annual public survey.
Write to Nour Malas in nour.malas@wsj.com
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