Entrepreneurs in Southern California, and in particular, Los Angeles, are attracting more investment money than any other region outside Silicon Valley, reports Forbes. So far in 2012, Southern California has outpaced previous Silicon Valley runner-up New England and has lured more venture capital than New York by nearly a 2-to-1 margin.

Forbes managing editor Bruce Upbin attributes certain “structural advantages” of Los Angeles, such as its strong entrepreneurial culture, for its growing prominence in the tech scene. Unlike New York and New England, where big corporations dominate, creative endeavors and entrepreneurship drive much of LA’s business community. Los Angeles had the highest rate of entrepreneurial activity from the period between 2009 and 2011.

Simply stated, people don’t come to Los Angeles to work for big companies, they come to LA to create them.

– Bruce Upbin, Forbes

Another factor driving LA’s emergence on the tech start-up scene is the abundance of technical talent residing in LA. Universities here produce more engineering graduates than any other county in California—including in Silicon Valley, reports Upbin. “These graduates provide the skill and energy that is vital to the growth of technology companies,” says Upbin. “In addition, LA is increasingly attracting graduates and other experienced technologists from across the country and the world.”

These advantages, inherent to LA and its entrepreneurial culture, have provided the momentum necessary for LA to close the gap, and now surpass, all others outside of Silicon Valley, and they’ll ensure the city’s continued prominence over the long term.

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