Urban economists have traced the growth of Cities to the success of breakout hit companies. One example was Microsoft’s relocation to Seattle and how that move resulted in the growth of prosperity of Seattle. A breakout hit company attracts other companies, employees, venture capitalists to the area. The hit company scales and hires more people and consumes more office space. Service firms, lawyers, busboys, and other workers are hired to accommodate this growth. The new wealthy employees break off and form new firms within the area and hire even more people.
Now Snapchat may be the West side hit company that the LA Tech community has waited for in hopeful anticipation. It user growth exceeds that of Instagram’s. Read below.