ExpertDojo: Investing in Startups from LA to the World

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.

ExpertDojo: Investing in Startups from LA to the World

Hi folks,

My name is Minh Do, and I’m helping out interviewing and writing articles about founders, investors, and builders in LA. If you want to be featured or know folks who want to be featured, feel free to contact me on LinkedIn. This week, we talked to Brian Mac Mahon from ExpertDojo. It’s a really fun interview, digging into Brian’s thinking and what ExpertDojo is up to. Keep an eye out on their newsletter for more updates coming from them soon!

🏃♀️ Quick hits

The Founder: Brian Mac Mahonis a well-traveled Irishman who has managed to find himself domiciled in Los Angeles. He is an experienced founder and investor as the self-titled head honcho of ExpertDojo.

The Company: ExpertDojo has invested in over 250 companies worldwide, mainly in pre-seed and seed. Most startups are minority and female founded technology companies but are opportunistic in terms of industry.

Tip: ExpertDojo regularly hosts events across a wide spectrum, so keep a look out. It also offers programs for young startups to get them to growth and revenue.

How did Brian Mac Mahon make it from Dublin, Ireland all the way to Los Angeles, California - building companies along the way, including one of the most vibrant startup ecosystems in ExpertDojo?

Brian comes off with a straightforward, opinionated, and spirited candor that is rare in soft-hearted California. His strong opinions hail from a lifetime of entrepreneurship that spans the globe and has observed the rise and fall of waves of companies. He’s lived in over 40 countries, including all over the United States.

It’s Brian’s perspective on Los Angeles, entrepreneurship, and innovation that are really telling about the kinds of startups he wants to see in the world and what he has an eye for, and ultimately, what kinds of startups he wants to see at ExpertDojo. When asked about what is unique about startups in Los Angeles, Brian got passionate:

“Right now, startup is moving back to its core, as it’s forced to with every recession. I think really great companies build phenomenal products based on a really good story, right? And so storyline without a good product is highly likely to fail, and a good product with a poor storyline may not fail but it's much harder to be successful. Now, a great product with a super story line, it's gonna do amazing things. And LA, without question, is the uncontested champion of the world when it comes to stories.”

And this, for Brian, is in contradiction to what we see in other tech-heavy cities.

“People go and stay in cities for different reasons and what that does is it crafts who they become and what they're able to create. People come to LA because they felt that they had the ability to be able to achieve the thing that they'd always imagined was unachievable or they had the ability to be on the screen. The stories here are glorious. They’re beautiful. They’re about human emotion. It’s very hard to do that outside of LA because VC’s outside LA are glorified accountants. And when have you heard a glorified accountant tell a good joke?”

For that reason, he thinks that LA has “the ability to be the center of entrepreneurship in America” and by contrast he thinks “the oversupply of capital in Silicon Valley is an abomination. It’s a cancer in America.”

At first, this sounds like a strong opinion, but Brian goes on to say that he isn’t “saying anything that everybody doesn’t know.” After all, we’ve seen the rise and fall of WeWork, Theranos, and more, right? The overheating of capital has led to oversubscribed hype rounds in companies that lacked a business model or failed to ultimately deliver on their promises to users while inflating their offerings to the demise of entire industries (we’re seeing that play out with the strike in the wake of the rise of streaming).

“It’s a cancer in America. But it’s not the people, okay. What's happened is: it's not that venture capital is bad. It’s what we’ve allowed to happen to it. Once you have multi-billion dollar funds, you have the ability for VCs to put a hundred million dollars in a Series A. Once that happens, terrible companies can temporarily win against great innovation. So what we've done is we have smothered all of the great entrepreneurs for 15 years. Look, anybody can raise seed, my mom can raise seed. Seed is irrelevant when the next round is a hundred million dollars. It's about A. So who’s raising A? Nobody. Only the unbelievably exceptional companies.”

This sentiment is very powerful. Seed startups are very crowded, but the real difficulty in raising is Series A, and you have to be a real legit business to raise A. This line of thinking gets precisely into Brian’s theses with ExpertDojo:

“Recessions are wonderful times. I dream of recessions like this. I mean, I have roughly 270 startups at ExpertDojo and when any one of my founders moans about a recession, I tell them to stop being a f***** idiot and just go out there and build a proper business.”

In sum, Brian’s thinking is that recessions force entrepreneurs to focus on the fundamentals of business. This is why Brian pushes his current cohort of entrepreneurs, it’s not about raising money or branding, etc. The most important factor is growth.

“The only thing founders should care about is growing. They just don't know it yet. They think what they care about is investment, but they should only care about growing, so you have to help them grow. And we can’t help them grow for only 12 weeks. It's too little time. We have to help them for at least a two-year period and preferably a four year period. So we have interaction every single week with them for years, much of it one-on-one, with a strong focus on go-to market, and the execution of sales and marketing tactics that will move the needle.”

Therefore this is a great time to build and see what the next generation of innovation will be. Part of this thinking is Brian’s interest in supporting the larger ecosystem of startups in Los Angeles and worldwide. ExpertDojo doesn’t only invest in Los Angeles, but in companies from all around the world, as long as they align with the thesis of growth.

On the back of this growth, Expert Dojo has decided to do what any good investor would do, further support those businesses with more capital to fuel continued growth. These successes have been the impetus for Expert Dojo to grow itself beyond their flagship accelerator, and are now in the process of raising a $50Million fund, part of which will be invested into the strongest of the accelerator's alumni.

Brian and his team continue to push the envelope and plant their unique VC flag in the Santa Monica soil. “At Expert Dojo we are a fund for the people and by the people. If any investor or founder wants to be involved with us, we welcome them to join as an LP or apply to be a portfolio company. After all, what good is it for a lad from Ireland to live the American Dream, if he can’t pay it forward to the future builders of this great nation.”

For those interested to learn more about Expert Dojo please contact Brandon@expertdojo.com

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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