Tencent Acquires Stake in LA-Based Concert Platform Wave

Sam Blake

Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake

Tencent Acquires Stake in LA-Based Concert Platform Wave

The Chinese majority-owned Tencent Music Entertainment is acquiring a minority stake in the L.A.-based virtual concerts company Wave, giving the startup a door into the country's state-controlled internet.

Terms of the deal weren't disclosed but the agreement will allow Wave concerts to be distributed on TME's platforms, including QQ Music, Kugou Music, Kuwo Music and WeSing, that operate within China's "Great Firewall." The two companies will also collaborate on developing shows for TME Live, TME's livestreaming platform the company launched in March.


Tencent, TME's behemoth majority parent company, came under fire earlier this year when the Trump administration issued an executive order to ban WeChat, its messaging app, in the U.S. Much like the parallel TikTok ban, that order has not amounted to much.

Tencent is one of China's state-owned enterprises. The deal comes as Chinese authorities appear to be showing small signs that they could ease some of the restrictions on long-banned foreign sites.

For Wave, which renders artists into avatars for real-time performance and fan interaction in imaginative digital settings, the deal not only gives it – and the artists who work with the company – access to what can be a hard-to-reach market, but also the monetization expertise of TME.

In the third quarter this year, about 70% of TME's revenue came from "social entertainment services" such as virtual tipping and digital gifts. Those are tools that Wave already uses to an extent but which have been slower to take off in the West compared to the Asian markets, where such consumer behavior is far more ingrained. Wave's new partner may help to accelerate their use, at a time when artists are particularly hungry for more revenue.

Wave launched five years ago as a VR-only company but has since made its shows available on social media platforms including Twitch, YouTube and TikTok, in addition to gaming consoles and headsets. The company raised a $30 million Series B round in June. It has orchestrated over 50 shows for artists, including John Legend and The Weeknd, whose TikTok performance in August attracted over 2 million unique viewers.

TME is publicly traded on the New York Stock Exchange. In addition to Wave it also owns stakes in Universal Music Group, Warner Music Group and Spotify.

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Sam Blake primarily covers entertainment and media for dot.LA. Find him on Twitter @hisamblake and email him at samblake@dot.LA

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This Year’s Techstars’ Demo Day Included Robot Bartenders and Towable Rockets

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College and previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

This Year’s Techstars’ Demo Day Included Robot Bartenders and Towable Rockets
Andria Moore

On Wednesday, Techstars’ fall 2022 class gathered in Downtown Los Angeles to pitch their products to potential investors in hopes of securing their next big funding round. dot.LA co-sponsored the demo day presentation alongside Venice-based space news website Payload.

Managing director Matt Kozlov explained that unlike previous years, this year Techstars combined two cohorts, merging its space accelerator program and Los Angeles program into one demo day. The result was a comprehensive pitch day where investors, founders and press could hear from 12 creative and intriguing companies working across a variety of industries.

What’s new in space startups

On the space side, two local firms were introduced, including Fenix Space, a San Bernardino startup that got off the ground in 2017 and is looking to wrestle control of the commercial air launch market away from local rival Virgin Orbit.

Fenix Space has a different model of air launching rockets than Virgin; instead of strapping the rockets to a large plane like Virgin does, it plans to tow them through the air. During the Techstars demo day Fenix CEO Jason Lee told Payload co-founder Ari Lewis that Fenix conducted one sub-orbital test flight last year, and is working on making a second craft that will be tested at New Mexico’s White Sands Missile Range by second quarter of next year.

During his pitch Lee said, he sees a wide variety of tow launch applications including terrestrial logistics (think an alternative to ground shipping for e-commerce, as one example) but noted, “we're starting with space because corporations and governments looking to put assets into space are relying on ground launch operations from only five orbital space points in the United States… . As a result, the wait time to launch is up to two years, customers are subject to fixed schedules, are being delivered to limited orbital destinations, and are often delayed weeks or even months.”

Lee said Fenix’s crafts can carry 75 times more payload per launch and can launch payloads to orbit 1000 times faster than its competitors. The company has raised $9 million in funding over five years, said Lee and has memorandums of understanding with “major commercial customers” that account for at least $32 million in potential revenue. He also noted Fenix has existing partnerships with the Air Force Research Lab and commercial space operations support agreement with Vandenberg Space Force Base.

Fenix also has a Space Act Agreement with NASA to develop its tow-glider launch platform and an exclusive license agreement with the agency.

man explaining space tech Fenix Space CEO Jason Lee. Photo: Fenix/Techstars LA

In Orbit Aerospace CEO Ryan Elliot was clearly passionate about the company’s mission to make manufacturing in space as easy as possible. “Today, the only way to manufacture in space and recover products back on Earth is through the International Space Station,” Elliot said. Elliot is betting that In Orbit can help reduce the high wait times and correspondingly spiking costs of space manufacturing by helping customers set up their own space factories.

All of which is a tall order, but not as far-fetched as it might seem. In Orbit developed a custom orbital satellite it calls the Haven Shepherd to launch customers’ cargo to space for manufacturing. Once the mini-factory is operational, In Orbit’s second module, a capsule called the Haven Retriever, will bring raw materials to the factory and swap that payload for the new, finished product to return it back to earth.

Elliot also noted the company is the only one trying to tackle the challenge of building a permanent orbital station that can interface with Earth, and has some $180 million in potential contracts in the pipeline. Adding that In Orbital has a Space Act Agreement with NASA and is planning a test mission as soon as 2024.

Apps focused on food and drink

One overarching theme of this year’s Techstars LA cohort was a focus on the food and beverage industries, as well as the intersection those industries have with the healthcare market.

Rotender was one of the splashier startups in this Techstars cohort, because, well, who doesn’t think the phrase “robot bartender” sounds cool. Sure, this robot won’t listen to you gripe about your partner during happy hour, but it will pour you a G&T in under 30 seconds. At least, that’s the gist pitched by CEO Ben Winston.

Rotender could work a large private event, but Winston said the company’s focused on getting into sports stadiums and entertainment venues. Capitalizing on the one thing all fans hate – long lines for concessions – Rotender is aiming to convince venues that spending $35,000 annually on a robot to pour drinks is worth the spend. “One Rotender unit operating 18 or more hours a week will earn a venue over $700,000 a year in drink credit,” Winston said, adding that it could also save a venue over 175,000 annually in spillage fees.

On the business-to-business side, Techstars-backed app Bevz is trying to “save your local convenience store,” as CEO Jason Vego put it. Bevz is basically an order management system for bodegas that helps them avoid running out of top-selling products. The app syncs with the store’s custom point of sale system and sends users notifications to purchase more products before it runs out. It also consolidates input from various delivery apps to give the store a clear picture of what is sold and how frequently.

“These stores are constantly running out of products that their customers want to buy, leading to $50 billion in lost revenue every year,” Vego said. “Most stores don't have any technology… this [platform] is a game-changer.

powerpoint explaining growth in company Bevz CEO Jason Vego pitches his app for convenience stores. Photo: Bevz/Techstars LA

Startups targeting mental and physical wellness

While a number of local startups backed by TechStars are looking to innovate in the food and beverage market, two in particular were focused on fitness coaching.

Founded by Liz Dickinson in 2020, San Diego-based wellness app Relish Life is an app-based clinic that connects people with clinicians for medication-assisted weight loss therapy supplemented by mental health treatment. Dickinson said during her pitch that Relish participants reported “11% body weight lost by six months compared to only 5% in 12 months, twice the weight in half the time of our competitor and we've clinically validated that the weight stays off,” Dickinson said. “Anything that stress triggers, we can treat,” she added, noting the platform could be used to help modify other unhealthy behaviors like smoking or even possibly addiction.

Another wellness-focused app pitching at the demo day was Liberate, a Brentwood-based coaching app focused on mental fitness. CEO Olivia Bowser said during her pitch that she quit her “dream job” six years ago after quickly burning out. The experience prompted her to found Liberate, which companies can choose as a benefit for their workers.

The platform works by connecting people with counselors and guided stress management and wellness exercises to complete throughout the day. There’s also a Slack channel for team-wide guided wellness exercises and morale boosting. “At less than two years old, we've serviced hundreds of companies through monthly and annual contracts… [and] helped nearly 5,000 employees feel happier and more productive at work,” Bowser said.

Derek Jeter’s Arena Club Knocked a $10M Funding Round Right Out of the Park

Kristin Snyder

Kristin Snyder is dot.LA's 2022/23 Editorial Fellow. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.

sports trading cards
Arena Club /Andria Moore

Sports trading card platform Arena Club has raised $10 million in Series A funding.

Co-founded by CEO Brian Lee and Hall of Fame Yankees player Derek Jeter, Arena Club launched its digital showroom in September. Through the platform, sports fans can buy, sell, trade and display their card collections. Using computer vision and machine learning, Arena Club allows fans to grade and authenticate their cards, which can be stored in the company’s vault or delivered in protective “slabs.” Arena Club intends to use the new cash to expand these functions and scale its operations.

The new funding brings Arena Club’s total amount raised to $20 million. M13, defy.vc, Lightspeed Ventures, Elysian Park Ventures and BAM Ventures contributed to the round.

“Our team is thankful for the group of investors—led by M13, who see the bright future of the trading card hobby and our platform,” Lee said in a statement. “I have long admired M13 and the value they bring to early-stage startups.”

M13’s co-founder Courtney Reum, who formed the early-stage consumer technology venture firm in 2016 alongside his brother Carter Reum, will join Arena Club’s board. Reum has been eyeing the trading card space since 2020 when he began investing in what was once just a childhood hobby.

The sports trading card market surged in 2020 as fans turned to the hobby after the pandemic brought live events to a standstill. Since then, prices have come down, though demand remains high. And investors are still betting on trading card companies, with companies like Collectors bringing in $100 million earlier this year. Fanatics, which sells athletic collectibles and trading cards, reached a $31 billion valuation after raising $700 million earlier this week. On the blockchain, Tom Brady’s NFT company Autograph lets athletes sell digital collectibles directly to fans.

As for Arena Club, the company is looking to cement itself as a digital card show.

“Providing users with a digital card show allows us to use our first-class technology to give collectors from all over the world the luxury of being able to get the full trading card show experience at their fingertips,” Jeter said in a statement.

Airbnb Is Expanding Short-Term Rentals in LA, but Hosts Likely Still Won’t Profit

Amrita Khalid
Amrita Khalid is a tech journalist based in Los Angeles, and has written for Quartz, The Daily Dot, Engadget, Inc. Magazine and number of other publications. She got her start in Washington, D.C., covering Congress for CQ-Roll Call. You can send tips or pitches to amrita@dot.la or reach out to her on Twitter at @askhalid.
LA house

L.A.’s lax enforcement of Airbnbs has led to an surge of illegal short-term rentals — even four years after the city passed a regulation to crack down on such practices. But what if hosts lived in a building that welcomed Airbnb guests and short-term rentals?

That’s the idea behind Airbnb’s new push to expand short-term rental offerings. The company is partnering with a number of corporate landlords that agreed to offer “Airbnb-friendly” apartment buildings, reported The Wall Street Journal last week. According to the report, the new service will feature more than 175 buildings managed by Equity Residential, Greystar Real Estate Partners LLC and 10 other companies that have agreed to clear more than 175 properties nationwide for short-term rentals.

But prospective hosts in Los Angeles who decide to rent apartments from Airbnb’s list of more than a dozen “friendly” buildings in the city likely won’t earn enough to break even due to a combination of high rents, taxes and city restrictions on short-term rentals. Rents on one-bedroom apartments in most of the partnered buildings listed soared well over $3,000 a month. Only a few studios were available under the $2,000 price range. If a host were to rent a one bedroom apartment with a monthly rent of $2,635 (which amounts to $31,656 annually), they would have to charge well over the $194 average price per night for Los Angeles (which amounts to $23,280 per year) according to analytics platform AllTheRooms.

Either way, residents who rent one of these Airbnb friendly apartments still have to apply for a permit through the City of Los Angeles in order to host on Airbnb.

“[..Airbnb-friendly buildings] seems like a good initiative. However, from a quick look, it seems that given the rent, Airbnb revenue wouldn’t be enough to cover all expenses if the host follows the city’s policy,” says Davide Proserpio, assistant professor of marketing at the USC Marshall School of Business.

In addition, since L.A.’s 120-day cap on short-term rentals still applies to the buildings on Airbnb’s listing platform, that greatly limits the number of longer-term guests a resident can host. Not to mention, some of the buildings that Airbnb lists have even shorter limits – The Milano Lofts in DTLA for example only allows residents to host 90 nights a year.

Airbnb’s calculations of host earnings may be greatly misleading as well, given that the estimate doesn’t include host expenses, taxes, cleaning fees or individual building restrictions. For example, Airbnb estimates that a resident of a $3,699 one bedroom apartment at the Vinz in Hollywood that hosts 7 nights a month can expect $1,108 a month in revenue if they host year-round. But the Vinz only allows hosts to rent 90 days a year, which greatly limits the potential for subletters and a consistent income stream.

Keep in mind too that since the apartment will have to serve as the host’s “primary residence”, hosts will have to live there six months out of the year. All of which is to say, it’s unclear how renting an apartment in an “Airbnb-friendly” building makes hosting easier — especially in a city where illegal short-term rentals already seem to be the norm.

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