The Founders of Color Changing LA's Startup World

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.

The Founders of Color Changing LA's Startup World

Even after the tech industry's reckoning after the killing of George Floyd last year, the startup world is still overwhelmingly dominated by white men.

Of the $150 billion in venture funding raised by U.S startups last year, just $1 billion went to Black founders, according to Crunchbase.

And Southern California is hardly bucking the trend. Just 2% of VC investment partners here identify as Black or Latino and less than 10% of VC-funded companies are led by women or people of color in Southern California, according to PledgeLA.

But even though progress has been slow, there are founders of color helping lead the new wave of tech startups.

Who stands out? We asked the region's top VCs to weigh in.


The list includes a young CEO who grew up without internet access who's now building an esports empire as well as a music industry veteran using artificial intelligence to predict what songs will become breakout hits.

Here is who topped the list in alphabetical order of votes received.

Delane Parnell

Delane Parnell

Delane Parnell

PlayVS' founder didn't grow up with internet access. But now the young CEO is building an online esports empire. The Detroit native told dot.LA that a chance meeting brought him to Los Angeles where the company took off, raising $108 million since launching in 2018.

Since it entered the esports marketplace for high school teams, PlayVS has raised $107 million. Now, 43% of all high schools in the country have an esports team, playing Fortnite, SMITE, League of Legends and other games using the PlayVS platform. But Parnell has larger ambitions.

"I still want to build a digital playground in which every gamer can compete, whether they're high school-aged or college-aged or in their 40s in any sort of context of competition," he told dot.LA in April.

Hamet Watt

Hamet Watt

Hamet Watt

Hamet Watt, co-founder and former chairman of MoviePass, unveiled Share Ventures last fall after raising over $10 million in funding. The venture studio aims to jumpstart companies that focus on human performance or wellness.

"We like to use human performance because it expands the definition," Watt told dot.LA. "It's not just things like yoga. It's sports tech, behavior science and human optimization."

Watt said he is the only Black person he knows of running a venture studio and by virtue of his diverse network he can tap into talent others may have overlooked.

"You can't make money doing the same thing everyone else does," he said. "You can't fish in the same talent pond that everyone else does."

Troy Carter

Veteran music executive Troy Carter is constantly reinventing the business of music management. The angel investor's latest project is Q&A, where he is co-founder and CEO. Founded in early 2019, the company not only does music distribution and analytics, but it has been testing a new product that uses music enthusiasts and AI to test whether songs can become hits.

"My job, with software, is: Can I help them choose which song they should release first? And what that reaction would be around that song. Can I help them deliver that content from A to Z seamlessly? Can I help them with their project management software? So, it's not to replace the creative process, it's to organize it," Carter told dot.LA.

The Philadelphian-turned-Angeleno was the founder and CEO of Atom Factory, where he rose to prominence managing the careers of global superstars including Lady Gaga and John Legend. Most recently, he led creator services at Spotify and, in 2017, was named entertainment advisor to the Prince Estate.

He also created AF Square Investments, which has backed Uber, Lyft, DropBox, Blavity, and Gimlet Media among others.

Allan Jones

Allan Jones

Allan Jones

Former ZipRecruiter Chief Marketing Officer Allan Jones' came from a family of small business owners. Bambee, the human resources company he founded, was his answer to the disparity he saw in accessibility to top-tier HR managers.

"This year in particular has verified the feeling we've had since starting Bambee," Jones said in a statement according to a Bambee Linkedin post. "Human resources can no longer just be for the Fortune 500."

Founded in 2016, Bambee connects small businesses with a dedicated HR manager for an affordable $99/month. The company has raised a total of $33 million in funding rounds primarily led by QED investors, and is now valued at $145 million according to Pitchbook.

Jones credits his family of small business owners for Bambee's mission. "My inspiration comes from an earnest insight into the friction and struggles of running a business day-to-day," he said in an interview with Medium earlier this year. "I had a seat at the table where those owners came home and talked about their actual business problems each night."

Hernan Lopez

Former Fox TV International CEO Hernan Lopez launched his own media startup, West Hollywood-based podcast studio Wondery, in 2016. The company quickly made a name for itself with a roster of hit shows like "Dirty John," "Dr. Death" and "Business Wars." And it raised $18 million before it was snapped up earlier this year by Amazon, reportedly for nearly $300 million.

"As a gay Latino immigrant, I have hit most of these 'celings' and have felt defeated and alone. But I was fortunate to find mentors who encouraged me to never give up and who provided guidance on how I could achieve my dreams. Now I want to give that opportunity to others," wrote Lopez in a Linkedin post.

Donny Salazar

Donny Salazar

Donny Salazar

There's probably no business more crucial in today's retail landscape than logistics.

Donny Salazar co-founded MasonHub as a way to help retailers streamline their logistics and fulfillment in 2018. His company, valued at $85 million, connects brands to its network of fully-owned and operated fulfillment centers so that they can scale more easily. To date, MasonHub has raised $21.5 million, most recently hauling in a $15 million round led by Autotech Ventures, according to Pitchbook. It counts Carbon38, 11 Honoré, MINDD, Vegamour and Bala Bangles among its clients.

Salazar, who was formerly an executive at Gilt Groupe, is focused on high-growth companies.

"Throughout my experience scaling businesses, I struggled to find a partner that could support a fast-growing brand and cared about the customer experience as much as I do," Salazar wrote earlier this year.

Lead illustration by Ian Hurley.

Correction: This story corrects the amount MasonHub raised and its valuation. A previous version relied on incorrect Pitchbook data, which has since been updated.

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From Pitch Meetings to Power Lunches: LA’s Exclusive Membership Clubs 🗝️

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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 California—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 you’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 you’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 “Malibu Plus” for an additional $2,190 a year, or $1,095 if you’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 “dream 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.

🧬🔬AI-Driven Drug Discovery

🔦 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.

🤝 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
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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

🔦 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.

🤝 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

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