Is El Segundo the Florence of Hard Tech?

There's something special about El Segundo, this little spot in LA wedged between the refinery, the beach, and LAX. It feels like something new is starting. Like a real comeback is happening.

It wasn't that long ago that it was just another industrial town on Santa Monica Bay. You know, warehouses, that Chevron refinery that's been there forever, and streets with those old Boeing signs. The same refinery that caught fire a few weeks ago and had everyone checking the wind direction before heading out for coffee. Now, those same streets have hard tech companies tucked away in garages. You see founders walking between coffee shops and workshops. They're talking shop about everything from flight control software to new materials. They aren't just building apps; they're making actual, physical stuff.

Sift’s CEO, Karthik Gollapudi, even called it the Florence of hard tech. And the more you're around here, it clicks.

Lowering the Activation Energy

When you get enough people working on difficult issues into one place, things start to happen. Karthik says, “it's like a chemical reaction where the density of talent is a catalyst to launch and iterate”

There’s a great vibe being surrounded by people who are chasing big problems. At Smoky Hollow’s coffee shop, the conversations are part technical and part philosophical. You can feel the respect in how they talk to each other and nobody is posturing. They are trading notes and pushing each other forward because they all know the stakes.

Being a small town helps too. You can't walk around without bumping into someone who's building satellites or propulsion systems. It feels less like a city and more like a college campus, where knowledge builds up quickly.

Touching Grass

Being so close to tangible things keeps you grounded. That refinery that gave El Segundo its name still dominates the skyline. And when it had a problem earlier this month, everyone in town felt it. You're always aware of where you are.

As Karthik says, “You're not sitting far away, tweaking something. You see the effects of the real world.” That keeps people honest. That's what makes this place so serious.

In a way, El Segundo never stopped being a factory town. It just switched from oil and warplanes to satellites and drones. The Douglas Aircraft plant, where they built warplanes back in the '40s, is now part of Northrop Grumman. The buildings that defined the aerospace age are now building the next one.

Money and Mission

There is a moral side to the work here, even if people do not always say it out loud. “This is a place where people can be driven by a mission, not just capital,” Karthik said.

That mix of purpose and funding feels familiar. Florence’s banking families once financed artists and engineers; El Segundo’s capital comes through defense contracts, joint projects, and investors who want to see the country build again. There is less money in motion, but more conviction behind it.

Humanism drove Florence's rebirth, with a belief that people could shape the world. Something similar is happening here. It's quieter, more about machines, less romantic, but just as real: a belief that building real things is a way to stay hopeful.

The SpaceX Effect

Every movement builds on what came before. Florence had its marble workshops, and El Segundo has its rocket engineers.

A decade ago, SpaceX showed that you could build hardware fast without messing it up. That changed the game. Suddenly, there was a group of engineers who saw how speed and accuracy could go together, and they wanted to do the same thing.

“SpaceX showed what's capable in El Segundo”, Karthik said. “That brought in more capital and the people who know what good looks like.”

You can trace nearly every hard tech company here back to that. That high bar is just part of the environment. That's what makes El Segundo stand out from all the other next Silicon Valleys that have come and gone.

Why This Feels Different

Maybe El Segundo's growth isn't just about new industry, but about when it's happening. Florence's energy came from money, curiosity, and a belief in the physical world. That same mix is here, but it's seen through engineering instead of art.

The funding is there, with venture capital acting like modern banking. The people are connected, with founders sharing labs and contacts. The backers are involved, with VCs who are actually present. And the idea is simple but strong: purpose over profit.

It might not last. Things like this rarely do. But right now, this small city is full of the same restless energy that once filled the streets of Florence. The sound of machines has replaced the sound of chisels, but the goal is the same: to make, to learn, to build something that lasts.

If you’re in LA this week, come celebrate El Segundo with us at Sift’s block party. https://partiful.com/e/EMFuPMZqjlPjYARUutD8