LA Tech Updates: Disney Earnings Include Big Mulan News; Microsoft Backs Irvine Chipmaker
- Disney Plus Surpasses 60 Million Subscribers
- Rocket Lab Boosts Payload Capacity
- Microsoft Backs Maker of Voice-Activated Chip, Syntiant, in $35M Round
Disney Plus Surpasses 60 Million Subscribersblack smartphone Photo by Kon Karampelas on Unsplash
Disney's earnings report Tuesday quantified the damage wrought by COVID-19 in the company's third quarter — which was entirely enveloped by the pandemic.
Each of Disney's four business segments suffered losses except for its direct-to-consumer and international operations, which includes the company's streaming app, Disney Plus.
The company also released new details about its release plans for the blockbuster live-action film, Mulan.
First, the revenue figures by segment, compared to 2019's corresponding quarter:
- Media Networks fell 2% to $6.6 billion
- Parks, Experiences and Products tumbled 85% to $2 billion
- Studio Entertainment dropped 55% to $1.7 billion
- Direct-to-Consumer and International climbed 2% to $4 billion
Disney Plus now has over 60 million subscribers, the company reported, a milestone Disney had previously announced it hoped to surpass by 2024. Add in ESPN+ and Hulu, and the company's total subscriber count now tops 100 million. Disney chief executive Bob Chapek said these numbers give the company confidence to "pursue even more innovative and bold initiatives as we grow our business."
The day's headline-grabber: Disney will release Mulan on Disney Plus in most markets where the service is available, including the U.S., rather than premiere it on the big screen. That's a big shock to the movie industry, where the theatrical release window usually gives movie theaters an exclusive several-months period to show films before they reach home viewers. Mulan, which was originally meant to hit theaters in March, is perhaps the highest-profile and biggest-budget film to be released direct-to-consumer. It will be available on September 4th for a price of $29.99.
Chapek called the decision a "one-off event" rather than a new way of doing business. It was the first call of Chapek's without his predecessor Bob Iger on the line.
Rocket Lab Improves Payload Capacity
Rocket Lab increased the payload capacity for its Electron launch vehicle to 600 pounds, far above the 225 kg it could support when the Electron launch vehicle first appeared in 2017.
"When we created Electron, we set out to develop a launch vehicle that small satellite operators would turn to when they needed a dedicated ride to a unique orbit on their schedule," founder and CEO Peter Beck said in a statement.
"We're proud to be delivering that capability and continuing to evolve our launch and satellite services to meet the market's ever-changing needs."
The company attributes the improvement to advanced battery technology.
The Long Beach-based lab is known for its 3-D printed and electric pump engines, known as Rutherford Engines, which company says are 90% more efficient than traditional gas pump engines. Their printing time: 24 hours.
Rocket Lab is set to launch again later this month.
Microsoft Backs Maker of Voice-Activated Chip, Syntiant, in $35M Round
Microsoft's venture fund M12 led a $35 million investment round in Irvine-based Syntiant, a semiconductor-making company that's produced tiny voice recognition chips — smaller than a flea — that are faster than many others on the market.
The company, which is also backed by Amazon's Alexa Fund, makes an "always-on voice interface" that reacts to speech. It has already shipped out a million of the units which are put into cellphones, smart speakers, earbuds and laptops.
The venture capital arm of chip maker Applied Materials, Inc. also joined in the lead for the Series C round, along with Atlantic Bridge Capital, Alpha Edison and Miramar Digital Ventures also joined the round. The company has raised a total of $65 million since it was founded by four veterans of the chip industry.
"It is a tremendous honor to know that some of the world's leading tech investors are supporting our growth stage, as we deliver our deep learning voice solution to customers across the globe," said Kurt Busch, co-founder and CEO of Syntiant. "We are especially thrilled that production volumes of applications using our neural decision processors are increasing and expect orders to ramp even higher throughout the remainder of 2020.
It's estimated that the speech and voice recognition market is expected to reach $26.8 billion by 2025, according to report by Meticulous Research.
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From 'the Passenger Seat to the Driver's Seat': Upfront Ventures' Nortman Is Now Co-Managing Partner
Kara Nortman is already widely regarded as one of the top VCs in Los Angeles. Now, she is getting a promotion to make it official.
Upfront Ventures, the Santa Monica firm with more than $2 billion in assets under management that Norman joined as partner in 2014, announced Monday she will become Co-Managing Partner.
Nortman will share the new title with Yves Sisteron, who founded the firm in 1996, and Mark Suster, who came aboard in 2007. But Nortman is quick to point out she's not replacing anyone.
"Yves is not going anywhere and Mark is not going anywhere, but he is 10 years older than me, so I have to be pretty good at this hopefully by the time I'm in my 50s," said Nortman, 44. "It really is an apprenticeship."
Nortman says she is taking a more active role in raising capital for Upfront's next $270 million fund (the firm raises a new vehicle every three years.) Citing SEC regulations, she declined to go into specifics but said fundraising is "going great."
As a native Angeleno, Nortman is a tireless cheerleader of the city's growing tech scene. In 2022, she will also be cheering on Angel City Football Club, L.A.'s new women's professional soccer team she co-founded with top celebrities like Natalie Portman and Serena Williams.
Norman's promotion also makes her one of the few women who have ascended to the highest ranks of venture capital.
She is a founding member of All Raise, a nonprofit advocating for female founders and funders and a board member of TIME'S UP, created by women in Hollywood to fight harassment and discrimination. In an interview Friday, Nortman talked about her new role, how she gets along with Suster and what investments she's most proud of. She also talked about the fate of the lavish Upfront Summit, which normally brings hundreds of investors and founders to L.A. every January for several days of glitzy parties and panels.
What will this new role entail and how will you split duties with the other managing partners?
It will feel like a big shift maybe to the outside, but it's been a very gradual evolution. In a lot of ways I've already been stepping into this role over the last year or so and doing more on the leadership front, like strategy, hiring and building relationships with the LPs, which is an interesting part of the business. I've always met LPs, but it's almost like moving from the trunk to the back seat to the passenger seat to the driver's seat.
From the outside, you and Mark Suster seem to have such different personalities. Can you give us a window into how you work together?
The funny thing is Mark and I have a lot of similarities. How would I describe our working relationship? It's the best I've had in my career. That doesn't mean it's not without friction at times. It doesn't mean in the early years we didn't bump heads when I thought I knew the business really well because I had done it at Battery Ventures for five years a decade earlier and it had changed a little bit. I had to evolve and understand how to operate in a different market at a different time and all those different things. He's been hard on me but in ways that have really helped me learn and evolve. And now we have very productive differences of opinions and he's still probably right 90% of the time. But in a lot of cases, there is no right.
When you say he's been hard on you, what's an example of something that he has changed about you or tried to change?
He cares deeply about giving me real feedback and that's not always been easy to hear. I think about a performance review I had two or three years ago where I think he typed me up a 10-page essay on my strengths and weaknesses with specific examples and it really kind of changed the way I invested.
I almost have this innate, positive energy that I used to call anxiety around making sure I meet the best people that we can invest in. I was so interested in getting in front of everything that I'd say one of the best things Mark did for me was slow me down. It really kind of goes to a place of developing your own point of view. And I think it's an important thing for women in this industry in particular. We want more people of color to be in leadership roles in this industry. But if we're all using the same inputs as everybody else and making decisions in the same way you just chase a little bit better. You're not actually going to leverage the important part of diversity, which is getting different kinds of thinkers with different kinds of networks.
Now that you are one of the few female VCs in a position of top leadership, what do you see as the key to further breaking up the boys' club and diversifying VC firms?
Once you're a woman or a person of color in a VC firm, it is making sure other talented people like you get hired, but also hiring people who are not totally like you. You have to make room for different kinds of people. And how do you empower those people? How do you support their process of making investments so they can win things when they don't have a huge portfolio? How do you bring the weight of the firm behind their process? It's really hard in the beginning. And so those first two years and having an awareness around mentorship and allowing that person to make mistakes and giving them the room to go slowly and get things wrong and really speak and have presence and feel like in their comfort zone is really important.
Over your decade-plus of doing this in L.A., what investment are you most proud of?
That's like asking to pick your favorite child! (laughs).
Is that an unfair question?
Totally! I'll just mention a few different things. When I got to L.A., the first startup I was involved with was Tinder. I recruited Sean Rad into IAC [the holding company that owns brands across 100 countries] to build something totally different, and during a hackathon, he built Tinder. It's turned out to be one of the biggest brands of its time.
Then I would go to a company like Fleetsmith, which was bought by Apple earlier this year in the middle of COVID when no one was buying anything. [The startup automates Apple device management.] I got to know those guys when they were just starting. I did their $7 million Series A and they were talking about things at the time that everybody thought was a little bit nuts. While they were in the Bay Area all three founders were from L.A. and this is a Mac town. I think I got the Mac thesis pretty quickly at a time when it was not as obvious and everyone was like, "if Apple's not doing it, there must be a reason."
A final one I'll mention is Parachute Home, which was my very first investment when I got to Upfront. [It makes modern bedding, bath, linens and other home decor essentials.] I think it reflects all the great parts of L.A. But it is built on technology. The headless eCom platform they built with data science around driving repeat rates and increasing load times is done so incredibly well.
What can you tell us about next year's Upfront Summit?
We are definitely doing something and it's going to be in a different form. Obviously, in a COVID world it's not going to be what it was in in 2020.
How much time are you spending on Angel City?
It's an important part of my life and my community but we have a full time CEO who is exceptional, Julie Irman.
What has surprised me is how much overlap there is between my day job and Angel City. One of those things about L.A. is we can sit at the intersection of tech, business, brand, celebrity and really think about community. I may take things away from my DevOps cloud cyber security companies by how we're building community at Angel City because they're doing very similar things where they're testing open source strategies. It sounds a little bit of a stretch, but I really like to think about systems and how different parts of my life influence my job.
***This interview has been edited for brevity and clarity.
**Upfront Ventures is an investor in dot.LA.
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'There's Not a Bigger Problem Right Now': Wavemaker Labs' Buck Jordan on How Robotics Will Change Restaurants
On this week's episode of L.A. Venture, hear lots of insights on equity crowdfunding from Buck Jordan. He's raising $50-$100K a day, mostly on SeedInvest, for the robotics and food companies coming out of WaveMaker Labs.
Jordan also addresses the dramatic changes coming to the food industry, and why WaveMaker is so focused on the application of robotics to this industry in particular.
"The best investments I think come from the really hard problems," he says. "There's not a bigger problem right now or an industry that's more under siege than the food industry is."
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