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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💰Bankruptcy to Billion Dollar Sale: Impressive LA Startup Success Stories

In the wake of the latest jobs report and its impact on the stock market, we thought it might be refreshing to shine a light on some LA startup success stories. Los Angeles has long been a fertile ground for interesting startups, fostering innovation and entrepreneurship across various industries. Among its success stories are Ring, Riot Games, SpaceX, Dollar Shave Club, and Fabletics—each of which has made a significant impact in its field.


Image Source: Amazon

Ring, originally conceived as DoorBot, was created in 2013 by Jamie Siminoff in Los Angeles, California, with the goal of revolutionizing home security. The idea sparked in 2011 when he kept missing deliveries because he was in his garage and hadn’t been able to hear the doorbell, leading him to create a smartphone-connected doorbell that allowed homeowners to see and communicate with visitors remotely. Despite initial struggles, including being on the verge of bankruptcy and a rejection on Shark Tank, where Siminoff sought $700,000 for a stake in the company, the exposure from the show propelled sales and visibility. In 2014, the company rebranded to Ring, and its innovative products, including the iconic Ring Video Doorbell, quickly gained popularity, ultimately leading to its acquisition by Amazon in 2018 for approximately $1 billion, marking a significant milestone in the smart home industry.


Image Source: Riot Games

Riot Games was founded in September 2006 by Brandon Beck and Marc Merrill in Santa Monica, California. The inception of Riot Games was driven by Beck and Merrill's shared vision to create a game that emphasized longevity and continuous player engagement. With an initial funding of $1.5 million from family and angel investors, they set out to develop League of Legends, a game that would go on to redefine the multiplayer online battle arena (MOBA) genre and become a cornerstone of the esports industry. The company’s commitment to a player-first approach and its innovative free-to-play model, which generated revenue through in-game purchases, quickly garnered a massive following. Riot Games' headquarters in West Los Angeles became the birthplace of a global gaming phenomenon, solidifying its status as a major player in both game development and esports.


Image Source: SpaceX

SpaceX was born out of Elon Musk's ambitious vision to reduce space transportation costs and enable the colonization of Mars. In 2002, after selling his stake in PayPal, Musk founded Space Exploration Technologies Corp. (SpaceX) in a small office in El Segundo. The company's humble beginnings in the heart of Southern California's aerospace industry were marked by skepticism from established players. From this Los Angeles base, SpaceX would go on to revolutionize the space industry, developing reusable rockets and becoming the first private company to send astronauts to the International Space Station, all while maintaining its significant presence in the region for nearly two decades before announcing plans to move its headquarters to Texas in 2024.


Image Source: TIME

Dollar Shave Club was founded in 2011 in Venice, California, by Michael Dubin and Mark Levine, who were inspired by their frustrations with the high cost of razor blades. The duo's innovative approach combined a subscription model with a humorous marketing strategy, launching with a viral YouTube video that showcased their product in a lighthearted manner. This video quickly garnered millions of views and led to an overwhelming response, crashing their website shortly after launch. Dollar Shave Club's success not only disrupted the traditional razor market dominated by giants like Gillette but also paved the way for a new wave of direct-to-consumer brands, ultimately culminating in its acquisition by Unilever for $1 billion in 2016.


Image Source: Fabletics

Fabletics, the popular activewear brand co-founded by actress Kate Hudson in 2013, began its journey in Los Angeles, California. The company was established with the vision of providing stylish and high-performance athletic apparel that caters to a diverse range of body types and lifestyles. Fabletics operates on a unique membership model, allowing customers to access exclusive discounts and personalized shopping experiences. Since its inception, the brand has rapidly expanded, launching various product lines, including men's apparel and scrubs, and has become known for its collaborations with celebrities like Kevin Hart and Khloé Kardashian. Fabletics has successfully positioned itself as a leader in the activewear market, emphasizing inclusivity and community engagement while revolutionizing the way consumers approach fitness fashion.

From redefining home security to revolutionizing gaming, these LA startups showcase the city's extraordinary ability to innovate across a diverse array of industries.


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'Not All VCs Have Turned MAGA'— Tech VC’s Bold Support for Kamala Harris
Image Source: Politico

🔦 Spotlight

Several prominent tech investors, including Mark Cuban, Reid Hoffman, Vinod Khosla, and Spencer Rascoff of 75 and Sunny, along with more than 500 others have endorsed Vice President Kamala Harris for the 2024 presidential election through an initiative led by Seattle investor John Schilling. This pledge, which also includes key LA-based firms like Backstage Capital, Bonfire, MaC Venture Capital, and Upfront Ventures, signals a unified effort among tech leaders to support Harris's candidacy. The pledge highlights their commitment to pro-business and pro-entrepreneurship values while emphasizing the importance of democratic institutions.

The pledge states: “We the undersigned are Venture Capital investors, founders and tech leaders who pledge to vote for Kamala Harris in the 2024 election. We spend our days looking for, investing in and supporting entrepreneurs who are building the future. We are pro-business, pro-American dream, pro-entrepreneurship, and pro-technological progress. We also believe in democracy as the backbone of our nation. We believe that strong, trustworthy institutions are a feature, not a bug, and that our industry - and every other industry - would collapse without them. That is what’s at stake in this election. Everything else, we can solve through constructive dialogue with political leaders and institutions willing to talk to us. In this pivotal moment, we are united in our support for Vice President Kamala Harris. We invite you to join us.” Additionally, the pledge clarifies, “This pledge is not a declaration of your politics or party alignment. It just means you intend to vote and support Harris for President in this election.”

For Los Angeles, this initiative highlights a significant shift in how tech leaders are engaging in political advocacy. With LA being a major center for innovation and venture capital, the involvement of these high-profile investors and firms signals a powerful alignment against conservative trends and states “Let’s show founders that not all VCs have turned MAGA,” reflecting a broader trend of progressive political support in the tech industry.


🤝 Venture Deals

LA Companies

  • ZeroTier, a network security startup, raised a $13.5M Series A led by Battery Ventures, with Bonfire Ventures, Anorak Ventures, Grand Enterprises B.V., Airbridge Equity Partners and First In Ventures also participating. - learn more
  • Look North World, a video game studio and publisher dedicated to the Creator platforms, raised an additional $2.25M Seed Funding led by London Venture Partners and others. - learn more

LA Venture Funds

  • Supply Change Capital led a $3.5M Seed Round for Terrantic, a two-year-old Seattle startup whose platform helps growers, packers, and food processors optimize yield, throughput, and quality by analyzing existing data. - learn more
  • Mantis Venture Capital participated in a $20M Round Extension for Haus, a startup whose marketing measurement platform uses causal attribution to determine the effectiveness of marketing efforts. - learn more
  • Caden Capital Partners participated in a $45M Series C for Rhombus, a startup whose platform enables businesses to deploy and manage security devices, offering features like real-time notifications and advanced analytics while also integrating with existing systems. - learn more

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🗓️ Essential LA Tech Calendars and Events

Los Angeles is rapidly emerging as a vibrant tech hub, offering a wealth of opportunities for those eager to dive into the industry. With numerous organizations hosting events tailored to aspiring entrepreneurs and tech enthusiasts, there's no better time to get involved. From networking mixers and educational workshops to pitch competitions and industry panels, the LA tech scene is brimming with chances to connect, learn, and grow. Keep an eye on the following calendars and events to take advantage of the numerous opportunities for networking, learning, and career growth.


AI LA Event Calendar

Artificial Intelligence Los Angeles (AI LA) is a public benefit 501(c)(3) nonprofit organization; supporting the STEAM (Science, Technology, Engineering, the Arts, and Mathematics) communities of the Greater Los Angeles area. AI LA hosts numerous events every month. Some of the upcoming events include AI Policy Happy Hour; LA GenAI Meetup, and LA Founders & Investors.

Find them on: LinkedIn, Luma, Instagram, X, YouTube


Startup Coil Event Calendar

Startup Coil is a community that offers various services to entrepreneurs including putting on events to help build through startup events. Startup Coil partners with KINN, a membership network, accelerator and collaborative workspace, to put on a weekly event called Startup Cafe, in which entrepreneurs, startups, and tech enthusiasts join together every Wednesday at 8:45 am to 10:30 am to meet and connect with like-minded people, industry professionals and investors, while enjoying a nice cup of coffee. They also put on tech happy hours and many other partnered events. Some of this summer’s events have included an LA Tech BBQ and a Tech Summer Party.

Find them on: LinkedIn, Instagram, X


Expert Dojo Event Calendar

Expert Dojo is an active international early-stage startup accelerator in Southern California. They have an 8,500 SF venue three blocks away from the Santa Monica Pier with a rooftop overlooking 3rd Street Promenade. They host numerous events in LA and partner with many groups. Keep an eye out for their next event!

Find them on:LinkedIn, Instagram, X, YouTube


Just Go Grind Event Calendar

Just Go Grind, founded by Justin Gordon, is a platform that provides valuable insights and resources for aspiring entrepreneurs through interviews and articles featuring successful founders. In addition to its online content, Just Go Grind also hosts events that foster networking and learning opportunities within the entrepreneurial community. Some of their upcoming events include LA Startup Community Basketball, Pitch and Run LA, and LA Startup Community Coffee Meetup.

Find them on:LinkedIn, Instagram, X, YouTube


Techstars LA Event Calendar

Techstars Los Angeles is an accelerator program that supports early-stage startups through mentorship and investment, focusing on diverse and underrepresented founders across various sectors such as healthcare, fintech, and aerospace. They host many events like Demo Day, where startups pitch their businesses to a community of investors and mentors, fostering networking and collaboration within the entrepreneurial ecosystem.

Find them on:LinkedIn, Instagram, X, YouTube


TechWeek Los Angeles

LA Tech Week is an annual event in Los Angeles that showcases the region's burgeoning startup ecosystem through a series of diverse events, including networking opportunities, panel discussions, and workshops, aimed at fostering innovation and collaboration among tech enthusiasts and entrepreneurs. Scheduled for October 14-20, 2024, it features around 30 events, such as fireside chats with industry leaders and pitch competitions for early-stage startups, all designed to connect participants with investors and thought leaders in the tech community.

Find them on:X, YouTube


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