Backstage Capital Opens Fund to Everyday Investors

Ben Bergman

Ben Bergman is the newsroom's senior finance reporter. Previously he was a senior business reporter and host at KPCC, a senior producer at Gimlet Media, a producer at NPR's Morning Edition, and produced two investigative documentaries for KCET. He has been a frequent on-air contributor to business coverage on NPR and Marketplace and has written for The New York Times and Columbia Journalism Review. Ben was a 2017-2018 Knight-Bagehot Fellow in Economic and Business Journalism at Columbia Business School. In his free time, he enjoys skiing, playing poker, and cheering on The Seattle Seahawks.

Backstage Capital Opens Fund to Everyday Investors

Backstage Capital, the Los Angeles venture firm founded in 2015 by Arlan Hamilton to focus on underrepresented founders, flung itself open to mom-and-pop investors and they quickly smashed down the doors. The firm launched a crowdfunding page Monday with the goal of bringing in slightly over a million dollars by the end of April, with investments ranging from $100 to $50,000.

By Monday evening, it had already raised more than $700,000 from more than 1,000 funders eager to invest alongside the likes of Sequoia Capital and Initialized in Backstage's long roster of consumer-focused startups.


The campaign comes as corners of investing that once were restricted to wealthy individuals have opened up to the masses. Before 2016, one had to make more than $200,000 per year or have investable assets of $1 million or more to invest in a private company. The SEC further loosened the rules last year, increasing the cap on what companies can raise annually from $1.07 million to $5 million.

Crowdfunding campaigns have been an increasingly common route for startups to raise venture funding, which has coincided with the Robinhood trading boom that fueled the recent GameStop frenzy.

But individuals investing in a venture firm – normally the province of family offices and pension funds – is something else entirely.

While Backstage's crowdfunding page is heavy on generalities about the firm's mission, it does not include any specifics on Backstage's financial performance, which like other venture firms is a closely guarded secret. Harlan did not respond to a request seeking comment.

"We would like to give everyday investors who share our values the opportunity to be a part of the Backstage journey and help us deploy more capital to underestimated founders," the firm said on its crowdfunding page.

Backstage has raised more than $7 million in dry powder since 2015 – which does not include Monday's haul – and invested in more than 130 startup companies, led by what it describes as "underestimated" founders.

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Genies Wants To Help Creators Build ‘Avatar Ecosystems’

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.

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Genies representatives told dot.LA that the firm is now seeking more creators to try its creation tools for 3D avatars, digital fashion items and virtual experiences. On Thursday, the startup launched a three-week program called DIY Collective, which will mentor and financially support up-and-coming creatives.

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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.

Here's What To Expect At LA Tech Week

LA Tech Week—a weeklong showcase of the region’s growing startup ecosystem—is coming this August.

The seven-day series of events, from Aug. 15 through Aug. 21, is a chance for the Los Angeles startup community to network, share insights and pitch themselves to investors. It comes a year after hundreds of people gathered for a similar event that allowed the L.A. tech community—often in the shadow of Silicon Valley—to flex its muscles.

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Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

LA Tech ‘Moves’: HyperDraft Taps LegalZoom Exec
Photo by James Opas | Modified by Joshua Letona

“Moves,” our roundup of job changes in L.A. tech, is presented by Interchange.LA, dot.LA's recruiting and career platform connecting Southern California's most exciting companies with top tech talent. Create a free Interchange.LA profile here—and if you're looking for ways to supercharge your recruiting efforts, find out more about Interchange.LA's white-glove recruiting service by emailing Sharmineh O’Farrill Lewis (sharmineh@dot.la). Please send job changes and personnel moves to moves@dot.la.

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