Inc. Magazine released its rankings today of the fastest growing private companies in America over the past three years, and for the second year in a row the winner is located in Southern California.
Loot Crate, which sends geeks and gamers a monthly collection of action figures, comic books and other loot, has gone from $125,000 in revenue during in its first year to $116 million in revenue last year.
"It’s been a really fast four years," said CEO and Co-founder Chris Davis, as he sipped a ginger beer at the company's headquarters in Northeast L.A. While most of Southern California's start-ups are located in the tony Silicon Beach area, Davis made a point to plant his start up near Highland Park.
“It’s good to find a place with affordable rent,” said Davis.
The's company's location has not only helped keep costs down, it's also has also become a competitive advantage to attract and retain employees in a relatively less expensive area to find housing; Loot Crate has gone from two employees in 2012 to 240 full-time ones now.
“We’re able to recruit a lot of people that want to live on the east side but don’t want to commute out west,” said Davis.
Loot Crate also benefits from being close to the toy and garment districts downtown, according to Davis.
"We feel like we're uniquely taking advantage of a lot of L.A.'s strengths," said Davis.
Other Southern California companies on Inc's list include Santa Monica-based Los York, a creative services and content production firm, and Carson-based Berkeley, which designs and manufactures molded fiber and other custom packaging.
Last year, Costa Mesa-based Ultra Mobile, which specializes in selling international mobile device plans to foreign-born people living in the United States, took the title of fastest growing company.
The Inc. 5000 is ranked according to percentage revenue growth, when comparing 2012 to 2015. Companies have to be independent in order to count, as opposed to subsidiaries.