SNAP IPO: Investors Will Be Spending More Time In LA

(First published on 3/4/17 on Hashtag Digest, my newsletter)

On Thursday, the SNAP IPO happened and it was a historic day for the Los Angeles technology community.

I’ve already received emails from several Bay Area VC’s asking me to “let them know” if I see any interesting companies emerge from the Snapchat mafia.

For the moment, the momentum in consumer technology has swung to Los Angeles and institutional investors better take notice.

Without mentioning names, I’ve recently met several stealth startups based out of Los Angeles with incredible founding teams who were originally based in the Bay Area and moved to LA to start their companies.

You can build a massive company outside of Silicon Valley. It is true.

💡#Startup I’m Loving Right Now: Lumi

Lumi streamlines the supply chain for e-commerce companies and produces beautiful packaging at a reduced cost.

As Jesse says, she stuck to a simple idea for an unreasonable amount of time and has built a company with incredible momentum.

Lumi graduated from Y Combinator in 2015 and is now the packaging platform for online brands including Threadless, MeUndies, and Cratejoy.

I love Lumi because they’re solving a problem that isn’t particularly sexy or trendy, and they’re doing it better than anybody else.

Logistics and packaging are a core business need for every e-commerce company, yet very few startups have tried to innovate in this space.

Jesse and Stephan (co-founders) met while studying at Art Center in Pasadena, California and their passion for design is 100% visible when you step in their headquarters and interact with their products.

Go Lumi. Another win for LA tech.

📚 #Reading List This Week

With Snap’s I.P.O., Los Angeles Prepares to Embrace New Tech Millionaires (The New York Times)

With the SNAP IPO, a batch of newly minted millionaires are looking for homes in Venice, Marina Del Rey, and Santa Monica.

Amazing to think how one successful company can change the real estate market in a city like Los Angeles.

How U2 Fans Are Getting Squeezed by Ticket Sellers (The Ringer)

The resale market for U2’s latest tour, celebrating 30 years of ‘The Joshua Tree,’ is just one more example of a broken ticketing system that hurts passionate fans the most.

Fascinating perspective on the ticketing industry from the former CEO of Ticketmaster, Nathan Hubbard.

🎧 #Podcasts To Listen To This Week

The 20 Minute VC: Interview with Roger Ehrenberg (Managing Partner at IA Ventures)

I loved hearing Roger’s approach to early stage investing and how IA Ventures favors a concentrated approach (i.e. a smaller portfolio) with high ownerships stakes in fewer companies.

In my own investing experience, I’ve preferred to invest in a small number of companies, which has given me the chance to spend more time with founders who need help.

It’s easier than ever to invest in startups, but it’s incredibly hard to find winners. Better to pick a few that you love.

Naval Ravikant on Reading, Happiness, Systems for Decision Making, Habits, Honesty, and More

Shane Parris and Naval talk about reading, habits, decision-making, mental models, and life. Truly inspiring and a must listen this week.

🐦 #Twitter People You Should Follow

1. Roger Ehrenberg (Managing Partner at IA Ventures)

2. Matt Hartman (Partner at Betaworks)

While you’re at it, you should subscribe to Matt’s newsletter Hearing Voices — you’ll be 100x smarter about voice applications because of it.

3. Nathan Hubbard (Formerly Head of Global Media + Commerce at Twitter & CEO at Ticketmaster)

(First published on 3/4/17 on Hashtag Digest my newsletter)

Written by

Founder and investor @ChapterOne. Previously led revenue @Tinder ($MTCH). Became #1 top grossing app. Follow me @jmj.

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