Growth Club

The entrepreneurial dream of running a business with skyrocketing revenue has come true for the managers at the 50 Fastest Growing Private Companies in the San Fernando Valley region. The Business Journal’s annual list starts at the top with ZPower, a company that has grown an incredible 13,487 percent since 2015. But even the last company on the list has grown 14 percent – a considerable accomplishment considering that the Los Angeles County economy grew an estimated 6.5 percent between 2015 and 2017, according to a report by the Los Angeles County Economic Development Corp. At a reception on Nov. 1, Business Journal Editor and Publisher Charles Crumpley unveiled the companies on the list and their rankings. “If you are with one of the companies invited to this reception, it means that you and your company have succeeded in ways that most have not,” he told the crowd at the Hilton Woodland Hills. “You have managed to grow your business quickly – never easy to do. … You are really helping to power our economy.” Growth is remarkable because, according to the nonprofit Ewing Marion Kauffman Foundation, entrepreneurship has been in long-term decline since the 1980s, although it has rebounded slightly in the last three years. Also, the LAECD report described the current U.S. economy on “a fairly steady though uninspiring growth path over the next few years.” Larry Tchamkertenian, chief executive of Bioluz LED in Woodland Hills and president of the Los Angeles chapter for the nonprofit Entrepreneurs’ Organization, said that despite the overall trends, certain localities – including the San Fernando Valley – enjoy vibrant entrepreneurial ecosystems. “I see it as pretty strong,” he said, referring to entrepreneurship in the Valley. “There are a bunch of software, accounting, fintech and web services companies.” In addition to startups, Tchamkertenian sees an active migration of growth companies from other places, particularly West Los Angeles and Santa Monica, to the Valley. “Companies that can’t afford $4-a-square-foot rents anymore are here – a lot of branding and marketing companies have moved into the Valley,” he said. “With Amazon, you can run your (e-commerce) company anywhere. You don’t need to be on the sexy westside anymore – you can be in Agoura, Westlake Village or Calabasas.” Tchamkertenian framed the national attrition in entrepreneurship as a consequence of the retail sector’s shrinking footprint. “Fewer brick and mortars — that’s the decline,” he stated. He also sees a generational difference, with fewer millennials eager to take risks and make sacrifices to get companies off the ground. However, he sees plenty of opportunities for new restaurants, gaming, e-sports and e-commerce companies. “I can see why for the last decade it’s been in decline, but I think it’s going to rebound,” he concluded. To qualify for the Fastest Growing Companies list, a business must have a minimum of $5 million in sales last year and have been in business for at least three years. Rankings were based on percentage revenue growth from 2015 through 2017. The Fastest Growing Private Companies list features a lot of technology outfits, but also includes auto dealerships, insurance agencies, medical device and research companies and building contractors. On the following pages, the Business Journal staff profiles the top three companies on the list, with compact write-ups for No. 4 through No. 10. Also, at the reception the Business Journal presented the Star Performer award to TicketManager, a Calabasas company that has appeared on the list for four straight years and has maintained a growth rate of 131 percent during that span. This Special Report also includes a profile to recognize TicketManager’s achievement. – Joel Russell