Meet the LA Startup Houses Building Companies Through Co-Living and Creative Energy

Katherine Abando
Katherine Abando is a lifestyle writer and social media producer from Los Angeles. Her coverage interests include internet culture/tech and Asian American Pacific Islander (AAPI) identity. She enjoys learning about emerging entrepreneurs and digital trends that pop up on her social media feed. Follow her on Twitter @kaband0.
Meet the LA Startup Houses Building Companies Through Co-Living and Creative Energy
Image courtesy of Launch House

Taking their lead from social media entrepreneurs who are creating content from mansions, a new breed of startup incubators and collectives are cropping up across Los Angeles. Their programs were built largely by young entrepreneurs trying to bridge the creator and startup worlds, speak to a generation that has grown up alongside social media.


Some are inspired by other co-living incubators or from founders who wanted to capture the creative energy those houses spawned.

In the Hollywood Hills, a collective started by two twenty-seven year-old entrepreneurs is helping seed-stage companies land funds and build up their products. Across town, a roving launch house focuses on building biotech entrepreneurs. Another is trying to foster breakthrough products in augmented reality.

Here's a run down of some of the most promising co-living concepts, along with their founders and the projects they're incubating.

Launch House logo

Launch House

Launch House formed last year after one of its founders tweeted about an experimental gathering of entrepreneurs in Tulum, Mexico. Located in a sprawling Beverly Hills mansion, the hub puts a heavy emphasis on social media and influencer-driven business ideas and runs monthly cohorts of about 20 founders each, connecting them with creators to build up their social media game. Potential participants must apply and then pay an annual membership fee, which includes the four-week live-in residency program and access and introduction to investors and advisors. Participants have to be 18 years of age or older.

"Many creators want access to startup investing opportunities but either don't have a way into top deals, or get pitched so often they can't easily decipher what's a good investment," said co-founder Brett Goldstein, "On the reverse side of things, many founders see collaborating with creators as a great way to reach new target audiences because distribution is a hugely scarce resource."

Several Launch House residents have gone on to raise successful rounds from staid investors including Sequoia and Y Combinator, though a Business Insider report about a COVID outbreak after a recent party raised questions about the culture at the home.

Brazen Bio

Started by longtime friends Shawn Carbonell and Brent Witgen, Brazen Bio is a biotech incubator house based in Redondo Beach which also provides members with lab access to Bio Labs in Torrance.

Inspired by other launch houses, the two PhDs wanted to create the first biotech hub in Los Angeles that combines the region's creator economy with its budding scientists and entrepreneurs.

"Part of our goal is to make it one of the top biotech hubs through us being here. As BioscienceLA Chief Executive Officer Dave Whelan would say, 'we're long L.A.'," said Carbonell, "Most companies need to also become media companies to stay relevant, and where better than Los Angeles for that?"

Four startups were accepted in the first round of what Brazen Bio is calling its 'BRZN1 cohort. The program started last month and runs through December. It's replete with a full line up of founder dinners and mixers, access to Bio Labs' equipment and weekly office hours. The founders aren't yet making seed investments but will be establishing a fund for 2022.

Carbonell said they are trying to find ways to promote Brazen through Discord and social media to Gen-Z entrepreneurs and encourage a new generation to enter the STEM field.

house.ai

The 27-year-old co-founders Robbie Figueroa and Luciano Arango moved from the Bay Area to Los Angeles, where they saw a maturing tech scene they thought could be a good place to build startups. The two convinced their tech friends to make the trip down to the Hollywood Hills, where they created a collective and early-stage fund called House.ai.

House.ai doesn't offer a full-time residency like Launch House. Instead, it sees itself as a place where founders can gather to co-work. Figueroa, a general manager for DoorDash in Puerto Rico, and Arango, a co-founder of San Francisco-based ScopeAI, both live in the house. There's no formal application for House.ai — instead, Arango and Figuero select premiere founders and operators to join them.

In the past year, House.ai has provided co-working space for 37 founders. The program connects them with early-stage venture capital and helps them recruit talent and connect to engineers. Figuero and Arango have so far invested in six of the companies — including cannabis wholesaler Nabis, a Y-Combinator-backed company.

Figuero considers House.Ai an industry-agnostic incubator, though its startups tend to gravitate towards fintech, fulfillment and delivery services, along with some consumer and business-to-business companies.

AR House logo

AR House

The AR House was born out of a tweet from augmented reality developer Aidan Wolf: "anyone organizing a house for snapchat lens creators? Would love to do something like that here in LA."

The response was overwhelming. Among those who reached out was AR creator Lucas Rizzotto.

The team quickly coalesced around the idea of a house dedicated specifically to AR creators and developers. L.A., home to AR juggernaut Snapchat, had more than enough talent. Within a week, the two had met their funding goal, much of it coming from the AR community.

Creators must be 18 years old or older to apply. AR House's founders don't take equity in the companies they help launch, but they do help provide participants with AR hardware to support their projects.

The cohorts will have access to a four-week session complete with dinners for founders, meet-and-greets with investors and other programming. The house doubles as an exhibition space for augmented reality projects, too. AR's first cohort started on October 5 and they signed a six-month lease to their Hollywood Hills house.

Rocketship House

Bay Area native and consumer tech founder Katia Ameri and YouTuber Elijah Daniel bootstrapped Rocketship House in November 2020. The house, based in the Hollywood Hills, boasts a stunning view of Los Angeles and an acre-long vineyard where participants are encouraged to collaboratively contribute to projects focused on the creator economy.

Ameri brings a hard-tech background. She raised $2.2 million for her telehealth platform, Mirra, an at-home allergy diagnosis service, before the pandemic started. Daniel brings social media savvy and a knack for making viral videos. The two say they are focused on projects that help creators develop content distribution and revenue streams.

Rocketship's residents have included musician Trevi Moran, musical artist and YouTuber Sam F and nicotine company Lucy co-founder Samy Hamdouche, whose startup is backed by Y-Combinator.

Daniel and Ameri aren't interested in taking equity. Instead, the pair said the want to focus on building a community of creators and tech entrepreneurs. There's no formal application, though interested founders and creators can reach out to Ameri via Twitter to join. The two say they are flexible about how long creators or founders can stay in the house. After experimenting with co-living, Rocketship House's founders said they're pivoting toward a model that will instead seek to foster a digital community and provide a physical workspace.

ADVNTR House

Advntr House was created by the co-founders of a college party app Dive.Chat, Michelle Fang and Kyle Brastrom. Its Gen-Z cohorts have served as founders of a wide variety of consumer, healthcare, fintech and media startups.

"A majority of the people that have entered ADVNTR House have either quit their full-time job, ended a relationship of over a year or dropped out of college," Brastrom said, "People kind of come into the house and then realize 'wow, there's so much opportunity out there'."

Participants live in ADVNTR's Melrose home, but the group also travels to destinations like Big Bear, California and Arizona. Every cohort shares the expenses and collectively develops the group's activities. There's a formal application and interview process to join ADVNTR. The cohort program lasts about eight weeks.

Fang and Brastrom organized L.A. Tech Week, a collaboration with other tech houses including House.ai, Launch House and Together Casa, a real estate startup organizes co-living houses for tech entrepreneurs, creators and other interest-focused communities.

Know of other startup houses around Southern California? Let us know!

https://twitter.com/kaband0
https://www.linkedin.com/in/katherineabando/

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How Dot.LA Readers Use AI in a Professional Setting

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.

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The Near Miss Apocalypse: Predictions for Post SVB Collapse

Spencer Rascoff

Spencer Rascoff serves as executive chairman of dot.LA. He is an entrepreneur and company leader who co-founded Zillow, Hotwire, dot.LA, Pacaso and Supernova, and who served as Zillow's CEO for a decade. During Spencer's time as CEO, Zillow won dozens of "best places to work" awards as it grew to over 4,500 employees, $3 billion in revenue, and $10 billion in market capitalization. Prior to Zillow, Spencer co-founded and was VP Corporate Development of Hotwire, which was sold to Expedia for $685 million in 2003. Through his startup studio and venture capital firm, 75 & Sunny, Spencer is an active angel investor in over 100 companies and is incubating several more.

The Near Miss Apocalypse: Predictions for Post SVB Collapse
Evan Xie

The historic Silicon Valley Bank collapse dominated headlines recently, and the tech and financial communities have only just started processing the aftermath. The 48-hour breakdown was both historic and a few inches away from economically catastrophic, and thanks to the swift moves of the FDIC, complete disaster was avoided.

But it’s still been disruptive. SVB was the banking partner for nearly half of U.S. venture-backed technology and healthcare companies that listed on stock markets in 2022, making it one of the biggest lenders for early-stage startups. The aftershocks of SVB’s breakdown spread just as far and fast as the main event: the close of Signature Bank just two days later, major market volatility, other banking crises at Credit Suisse, tech industry troubles, and much more.

In the days since, things have settled slightly, and the world’s fingers are crossed that depositors are comforted enough and confident enough to avoid another bank run. It’s good news, but we aren’t out of the woods yet. Now that we know the second-largest bank failure in U.S. history could be looming around any corner, how does that change the ways startups do business?

Level, Set, Go

Before we get into what could happen, it’s smart to level-set about how we got here. (And for an introductory primer, this short podcast can help.)

  • The government 100% did the right thing by assuring depositors that they will be made whole. The FDIC swooped in, steadied the ship, and made sure people had the money they needed when they needed it.
  • Some have called this a ‘bailout', but it’s not for two reasons. 1) SVB shareholders and creditors will be wiped out and 2) taxpayer money is not being used to do any bailing.
  • Remember: depositors are not creditors. When companies and people put money into their accounts at SVB, they had every reason to expect that it would be there when they needed to withdraw it. They weren’t loaning the money to SVB (as a creditor would), they were depositing money into their own account at SVB for safekeeping.
  • People who say “depositors took a risk by having more than the FDIC insured $250K limit” are, ahem, a bit misguided. (I’m being polite). The truth is that $250K is not that much money for a company, especially of the size and scale of some of SVB's major customers.

Here’s where I think we should go from here.

The Short Term

While SVB’s failure didn’t launch us over the precipice, many people are rightfully feeling very nervous being this close to the edge.

Looking out to the next few weeks, I predict we’ll see venture funding slow way down. It’s been chilly out there recently, but it’s going to be ice cold, piggybacking on the already struggling tech landscape. Writing new checks will take a backseat to checking in on existing investments. VCs will need to assess where their cash is and where their portfolio companies stand, and likewise startups are going to have to start thinking hard about what it means to be lean and extend runway. Hopefully this only lasts a few weeks and the wheels of the machine start turning again before summer.

If there is a positive take on the SVB wreckage, it’s that the Fed will likely slow down the rate of increases. I’d predict a 25, maybe even 0, basis-point increase next week, and I wouldn’t be surprised if there was a rate cut later this year.

Whither venture debt?

Prior to SVB’s failure, it was very common for a startup to have enough cash at SVB for one year of runway, plus a venture debt line for an additional another year. SVB profited from this by charging interest plus warrants and requiring banking exclusivity. It was part and parcel of how they did business, and since they’ve transitioned from success story to cautionary tale, expect to see new regulations prohibiting banks from requiring customer exclusivity in exchange for additional services.

In the immediate term, companies who had venture debt lines with SVB are trying to decide whether to put their cash back in SVB in order to access that venture debt. The whole situation is surreal, since just a few days ago these same companies were scrambling to pull their money out of SVB, and now they are considering returning. There are conflicting reports, but it appears that SVB is allowing these companies to keep a second banking relationship with another bank (so no more exclusivity), but at least half of their cash must be with SVB.

For startups choosing not to access that venture debt line, now trying to figure out how to operate without venture debt (aka less hiring, less spending, less growth), they’re in for challenging times ahead. To fill that funding gap, maybe we’ll see more private lenders step in and provide venture debt as a product. If that is the case, I suspect terms will be tougher and many VCs will recommend against it for their companies.

Another prediction: audit committees of boards will come into play much earlier than they often do now. Given the ever larger seed and Series A/B rounds, it wasn’t uncommon to see startups that had raised $100M+ and had 200+ employees before an audit committee was formed. I suspect these will now be formed upfront and have a much bigger role to play in early stages.

Silver Lining

The good news: the world isn’t ending and won’t in the near future (at least, not because of this). Yes, things will be different and it will take some time to settle into a post-SVB startup environment, but with change comes adaptation. And with adaptation comes innovation, which is what startups are all about.

https://twitter.com/spencerrascoff
https://www.linkedin.com/in/spencerrascoff/
admin@dot.la

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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.

This Week in ‘Raises’: SpectrumAI Lands $20M, Fount Grabs $12M
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Local digital health company SpectrumAI raises fresh funding to accelerate the company’s applied behavior analysis (ABA) electronic health record, Twyll, and Patterns, while health and performance advisor Fount will use its new funding to advance its mission to make tailored health and performance programs more accessible.

***

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