Adam Miller's First Act

Wil Chockley
WIl Chockley is a partner at 75 & Sunny, where he evaluates potential investment opportunities across sectors and works with founders to build their strategy and execute on their vision.
Adam Miller's First Act

If you donโ€™t know Adam Miller, he is almost certainly the most important person in LA tech youโ€™ve never heard of. If you know Adam, congrats! Youโ€™re a lucky individual. Read on anyway because Iโ€™m sure youโ€™ll learn something new about one of the godfathers of tech in Los Angeles.

Given all the interesting things Adam has done and is doing, weโ€™re going to be telling his story in two parts. Todayโ€™s edition discusses Adamโ€™s first act, covering his early days through the eventual IPO and $5.2B sale of his company, Santa Monica-based HR tech juggernaut Cornerstone OnDemand. Next week youโ€™ll read about Adamโ€™s second act - how heโ€™s taken the learnings from Cornerstone and used them to build an ecosystem of tech startups and nonprofit organizations bettering LA and the world.

Letโ€™s get going.

_______________

๐Ÿ‘ฆ Early Life

Adam grew up in northern New Jersey, and, like a number of other successful entrepreneurs, was a late bloomer. Adam was a self-described โ€œfollowerโ€ until later in high school, when he came out of his shell. One clue that Adam might not be exactly like the other kids emerged when a beloved teacher and the principal of his high school both came under fire from the school board. Adam, a student at the time, led the defense of the embattled educators, organizing the student body to protest and successfully presenting to the school board to protect the teachers. Adam went on to graduate high school as student body president, editor of the school newspaper, and a varsity athlete.

As has become a theme in Adamโ€™s life, he didnโ€™t rest on his laurels. Moving onwards and upwards to the University of Pennsylvania, Adam prepped to become a lawyer. He studied history and business and got his start in homeless advocacy (more to come on that in our next piece on Adamโ€™s second act).

๐Ÿ‘จ๐ŸŽ“ Education

The summer before senior year, Adam took a class at UCLA and got a job as a bar manager at a restaurant in Westwood. Adam so impressed the general manager of the LA restaurant that the GM asked Adam to join him as his business partner in buying a new restaurant with him right out of college. He must have been a pretty good bar manager, right? The only problem was that Adam had already planned his life out and was going to be a lawyer. He was admitted to UCLA Law School for the upcoming year and was right on track. So of course, Adam said yes to both law school and the restaurant. If that wasnโ€™t already doing enough to kill the average person, he then decided he wanted more formal business training as well, so he got an MBA from UCLA at the same time.

๐Ÿ“ˆ Cornerstone

After finishing grad school and exiting the restaurant, Adam moved to New York to โ€œkeep learning about businessโ€ by working in investment banking for a couple years. At that time (the late 90โ€™s), the dotcom boom was booming, and Adam had an idea to bring education via the Internet to people who couldnโ€™t normally get it. Adam left his banking job and founded CyberU with a plan to provide an online direct-to-consumer continuing education platform for adults.

The timing was terrible. Adam started the company in 1999, and the dotcom bubble burst less than a year later. Funding for startups dried up, so the company had to keep costs minimal and generate revenue as fast as possible.

Startup funding plummeted just as CyberU was getting off the ground

CyberU wasnโ€™t cutting it, so the company pivoted from a B2C model to a B2B model, shifting the target customer from individuals to some of the largest (and deepest-pocketed) companies at the time, including Washington Mutual, Smith Barney and Aon. The good news was CyberU, rebranded as Cornerstone OnDemand, quickly found product-market fit in the enterprise. Cornerstone was one of the first and, at that time, only companies to leverage the Internet to create an enterprise Learning Management System. The company delivered the classes and learning platform over the web, which often confused clients who expected all their software to live behind enterprise firewalls. Of course, today we call what Cornerstone did Software-as-a-Service.

From there, it took 6 more years, investments from family and friends, credit card debt, and money from a loan shark to keep the lights on before Adam raised his first venture capital round from Bessemer Venture Partners in 2007. Cornerstone raised more money in 2009 from Meritech Capital before going public with Goldman Sachs in 2011. From inception to IPO, the company only burned $11m, less than the average Series A round today.

Adam continued to lead Cornerstone as CEO after the company went public. Along with product diversification and multinational expansion, he navigated direct competition with Oracle and SAP, financial market volatility, activist attacks, and the challenge of integrating a massive acquisition during a global pandemic.

Then in mid-2020, after two decades at the helm, Adam transitioned into an Executive Chairman position and oversaw the 2021 acquisition of the business by Clearlake Capital for $5.2B.

Cornerstoneโ€™s broad product catalog today

At the time of the acquisition, Cornerstone had over 3,000 employees with offices in 25 countries, had helped develop over 75 million customer employees, and had delivered over a billion online classes. Today, the company retains its core learning management functionality and has built broader human capital management, talent management, and performance management software, along with a multitude of other solutions.

So what is Adam doing in โ€œretirement?โ€ More than most of us do in a lifetime. From co-founding and serving as CEO of a new tech startup to venture investing to combatting homelessness in LA to incubating and launching MORE startups, Adam is busier than ever.

Next week, weโ€™ll cover all Adamโ€™s new ventures in his second act.

From Pitch Meetings to Power Lunches: LAโ€™s Exclusive Membership Clubs ๐Ÿ—๏ธ

Download the dot.LA App

Summer's here, so it's time to zhuzh up your work environment. Discovering the best membership and social clubs in Los Angeles for meetings can boost networking and collaboration, offering exclusive venues and premium amenities tailored for professionals and creatives to thrive amidst the city's vibrant backdrop. These clubs provide a sophisticated setting for productive gatherings and meaningful connections in LA. Here are some top private member clubs perfect for meetings and productive work sessions.

The Jonathan Club

Club Details: The Jonathan Club, one of Los Angeles' original membership clubs, has been a cornerstone of the city's elite social scene since its founding in the mid-1890s. Its legacy is intertwined with the growth and development of LA itself, most notably through a pivotal meeting held at the club that sparked the idea for a southern campus of the University of Californiaโ€”what would eventually become UCLA. Today, the Jonathan Club continues to offer its members an unparalleled experience of exclusivity and refinement. With locations in both DLTA and Santa Monica, members enjoy access to premium amenities and spaces and a calendar with hundreds of social events and workshops throughout the year, providing ample opportunities for networking, personal growth, and leisure activities.

Membership Details: Initiation fee is around $50,000, and admission typically requires that you be invited or know someone who is already a member.

Spring Place

Image Source: Spring Place

Neighborhood: Beverly Hills

Club Details: A mix between co-working space and social club, this Beverly Hills hotspot is a more exclusive version of similar clubs. Spring Place Beverly Hills spans three floors and offers a stunning art collection. The interior is filled with tons of natural light and has an intentional design that fuels members to harness some of their best work. Members also have access to luxurious dining and nightlife pop-ups that happen at Spring Place.

Membership Details: There is a non-refundable initiation fee of $500 and then local membership for people under 30 starts at $300 per month, while monthly membership for locals over 30 is $600.

Griffin Club

Image Source: Griffin Club

Neighborhood: Cheviot Hills

Club Details: Located in Cheviot Hills, Griffin Club LA is a sporty club with ample shared workspace. Following a $20M renovation in 2020, the club now boasts seven LED-lit tennis courts, four LED-lit pickleball courts, two recreational lap pools, a 25-meter family pool for kids, an adults-only resort pool, and childcare services. It's the ideal destination for a clientele looking to mix work with competitive sport.

Membership Details: Membership is by invitation only and is subject to approval. Membership prices at the club vary. A family membership entails a $12,000 initial fee plus a $450 monthly fee, while a junior membership only entails a $2,000 initiation fee and a $205 monthly fee.

Soho House West Hollywood

Image Source: Soho House West Hollywood

Neighborhood: West Hollywood

Club Details: Soho House West Hollywood provides a stylish and exclusive work and meeting destination, featuring chic meeting rooms and workspaces with panoramic views of Los Angeles. Combining luxury amenities with a creative atmosphere, it offers an ideal setting for networking, collaboration, productive sessions, and an amazing Sunday brunch!

Membership Details: Two current member referrals are needed, plus an online application, and a recent photo to confirm your identity. Quarterly memberships start at $675.25, but if youโ€™re under 27, you can pay $337.75 quarterly. However, if you want access to every house, membership costs $5,250.00 annually, or $2,650.00 if youโ€™re under 27.

Little Beach House Malibu

Image Source: Little Beach House Malibu

Neighborhood: Malibu

Club Details: The Little Beach House Malibu is a small, local club for the creative community of Malibu and the surrounding coastal areas. The club is known for its magnificent dining room, bar, sitting room and terrace. It is the perfect place for a truly memorable work meal.

Membership Details: Malibu Beach House is not included in the Soho House membership. If you are an existing member, you can apply for โ€œMalibu Plusโ€ for an additional $2,190 a year, or $1,095 if youโ€™re under 27.

San Vicente Bungalows

Image Source: San Vicente Bungalows

Neighborhood: West Hollywood

Club Details: San Vicente Bungalows is an exclusive, members-only social club located in West Hollywood, California, offering a luxurious and private environment for its high-profile clientele. The club is renowned for its strict privacy policies, elegant decor, and high-end amenities, catering to celebrities (and royals) and industry elites seeking a discreet space to unwind and socialize.

Membership Details: You must be nominated by a current club member to apply. Applications are evaluated monthly and annual dues start at $4,200 plus a $1,800 initiation fee.

The Aster

Image Source: The Aster

Neighborhood: Hollywood

Club Details: The Aster, located at the iconic intersection of Hollywood Boulevard and Vine Street, redefines the modern members' club with its emphasis on warmth and hospitality, blending public hotel amenities with private club exclusivity. Featuring bright, airy spaces and top-notch facilities such as an outdoor pool, recording studio, and rooftop bar, it offers a fluid environment for work, relaxation, and socializing.

Membership Details: Memberships start at $3,600 per year and be acquired by filling out an application. In addition to uploading a photo, hopeful members also have to write a small bio while highlighting their interests, skills, profession, and hobbies.

NeueHouse

Image Source: NeueHouse

Neighborhood: Venice/Hollywood/DTLA

Club Details: NeueHouse in LA is a chic private workspace and cultural hub designed for creative professionals, offering sophisticated workspaces, a dynamic calendar of cultural programming, and luxurious amenities. Situated in three bustling neighborhoods across LA, it provides a collaborative environment where members can work, network, and unwind in style.

Membership Details: You have to apply for the Salon membership, which includes questions like โ€œdream dinner guests (dead or alive?)." Annual dues for Salon memberships are $3,000 plus a $200 joining fee. You can also inquire about the Gallery membership for flexible workspaces and offices for individuals or teams, starting at $595 per month, with various options depending on your needs.

๐Ÿงฌ๐Ÿ”ฌAI-Driven Drug Discovery

๐Ÿ”ฆ Spotlight

Terray Therapeutics is at the forefront of AI-assisted drug discovery and development, operating a cutting-edge laboratory in Monrovia, California. The facility, roughly two-thirds the size of a football field, functions as a data powerhouse, generating over 50 terabytes of raw data daily, which is an amount of information equivalent to 12,000 high definition movies, through its miniaturized automation processes.

Terray Therapeutics exemplifies a new wave of innovative companies harnessing artificial intelligence to revolutionize drug discovery and development. The key to their approach lies in generating vast amounts of high-quality experimental data to train their AI systems. This data-driven strategy enables rapid experimentation and pattern recognition, allowing the AI to make informed predictions about potential treatments. Terray's generative AI can digitally design drug molecules, which are then synthesized and tested in their high-speed automated laboratory. The platform measures the interaction between these molecules and target proteins, with both successful and unsuccessful results feeding back into the AI system.

This iterative process creates a powerful feedback loop, continuously refining the AI's predictive capabilities and accelerating the drug discovery process. Terray's tNova platform integrates chemical experimentation and computation at an unprecedented scale, producing massive amounts of precise, purpose-built data that becomes increasingly valuable with each cycle of design and experimentation. This unique blend of experimentation and computation allows Terray to efficiently explore a vast molecular space, potentially solving complex problems in drug discovery faster and more effectively than traditional methods.

๐Ÿค Venture Deals

LA Companies

  • Fuze Technology, a provider of rentable portable phone chargers, has raised a $11.5M Series A led by Beverly Pacific and joined by Palm Tree Crew, Bain Capital Ventures Scout Fund, Dream Ventures, Live Nation, ASM Global, SCIENCE Ventures, Haslem Sports Group, and Simon Ventures. - learn more
  • Stanly, a platform that offers fan-to-fan and artist-to-fan communication and commerce, raised an $8M Funding Round led by C Capital and joined by AppWorks, Goodwater, and Palm Drive Capital. - learn more
  • GrayMatter, an industrial robotics company, raised a $45M Series B led by Wellington Management and joined by NGP Capital, Euclidean Capital, Advance Venture Partners, SQN Venture Partners, 3M Ventures, B Capital, Bow Capital, Calibrate Ventures, OCA Ventures, and Swift Ventures. - learn more

LA Venture Funds

LA Exits

  • Webtoon Entertainment, an online cartoon company based in LA carved out of South Korea's Naver, set IPO terms to 15m shares at $18-$21. It would have a $2.6b fully diluted market value, were it to price in the middle, and plans to list on the Nasdaq (WBTN). - learn more
  • EV maker Fisker has finally filed for bankruptcy. - learn more
Download the dot.LA App

Sony Pictures Experiences Division Formed After Alamo Drafthouse Acquisition

Christian Hetrick

Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.

Sony Pictures Experiences Division Formed After Alamo Drafthouse Acquisition

๐Ÿ”ฆ Spotlight

Sony Pictures Entertainment has acquired Alamo Drafthouse Cinema in a groundbreaking deal that marks the first time in over 75 years a major Hollywood studio will own a movie theater chain. This acquisition signals a potential shift towards vertical integration in the film industry, with Sony gaining more control over the distribution and exhibition of its films.

The deal allows Sony to expand its presence in experiential entertainment, aligning with its vision of engaging audiences outside the home through unique offerings. Alamo Drafthouse's innovative dine-in movie experience, devoted fanbase, and curated programming like Fantastic Fest make it an appealing acquisition target. Sony stressed that Alamo will continue operating its 35 locations under CEO Michael Kustermann, who will head the new Sony Pictures Experiences division.

While the move provides financial backing for Alamo after its bankruptcy struggles, questions remain about whether the chain can maintain its independent spirit and personality under Sony's ownership. Alamo is renowned for creative programming like themed events, interactive screenings, and a strict no-talking policy that has cultivated a passionate community of moviegoers. Balancing this distinct identity with Sony's corporate interests will be a key challenge moving forward.

From a technological standpoint, this move opens up possibilities for Sony to enhance the moviegoing experience at Alamo Drafthouse locations through integration of advanced audiovisual systems, immersive technologies, and projection/sound solutions. In addition, Sony could create a more seamless and connected experience for moviegoers, such as through integrated ticketing platforms, mobile apps, and personalization driven by data analytics. While specific technological plans are not detailed, the combination of Sony's resources and Alamo Drafthouse's innovative approach could foster synergies and drive the development of new technologies to differentiate the theatrical experience further.

๐Ÿค Venture Deals

LA Companies

  • Apex, a satellite bus maker, raised a $95M funding round co-led by XYZ VC and CRV joined by Upfront Ventures, 8VC, Toyota Ventures, Point72 Ventures and others. - learn more
  • Regard, a developer of AI tools to help medical providers synthesize patient data, raised a $30M Series B led by Oak HC/FT at a $350M valuation. - learn more
  • Daisy, a small business tech installation startup, raised an $11M Series A co-led by Goldcrest and Bungalow. - learn more
  • Pyte, a startup that allows companies in highly regulated industries like finance and healthcare to perform computations on encrypted data without ever decrypting it, raised a $5M Funding Round led by Myriad Venture Partners. - learn more

LA Venture Funds

LA Exits

RELATEDEDITOR'S PICKS
Trending