About Venture Hollywood
We build high tech startups from scratch to bring innovative products to market. Our process… Win research grants or use family office funds for initial development, build a working product, then spin-off a profitable enterprise. We’re not taking pitches, competing for whatever happens to be in the market. We define the market.
Venture Hollywood director Robin Rowe did this successfully before at Fortune 500 defense company SAIC, as the founding director of their AI research lab. Robin spun off innovative products into successful divisions, achieving 10x the profit margin of the company quota. A proven innovation business model.
Venture Hollywood, monetizing innovation by spinning off profitable startups.
Venture Hollywood is an innovation lab and startups foundry driving high tech ventures in AI, AdTech, autonomous systems, blockchain, consumer, energy, enterprise, fintech, games, healthcare, media, mobile, OTT and robotics. Based in Los Angeles. Founded in January 2018 by USC Innovation Conference organizer and Fortune 500 innovation lab director Robin Rowe.
Unicorn question: Are we thinking big enough? Defining moment, 10x better product than the current market leader.
Oracle selected Venture Hollywood in May 2018 as one of the first Los Angeles companies to be in the Oracle Scaleup Ecosystem driving cloud-based innovation.
Venture Hollywood combines aspects of a corporate innovation lab and a venture accelerator. Like an innovation lab, Venture Hollywood builds new technologies from scratch.
Unlike a corporate research lab, such as Xerox PARC that inspired Steve Jobs to make the Mac, Venture Hollywood is building products to go to market, to monetize. Unlike an accelerator such as Y Combinator, Venture Hollywood doesn’t take pitches. We define innovation goals, raise capital, create a new state of art, build a new company from scratch to implement product, bring it to market, generate revenue and guide the new company to profitability.
Why the Venture Hollywood strategy is all unicorns…
Unicorns so dominate successful venture funds that the also-rans add no significant value. By definition, unicorns are startups valued at over $1 billion. Unicorns have impact, transform the world and produce enormous financial returns. In the wide world are a total of 200 unicorns worth $700 billion. Let’s make more.
A unicorn product is 10x better, not merely 10% better. It defines state of the art. Unicorns may launch new markets (Uber) or humble “invincible” market leaders (Google vs. Yahoo search). Unicorns may be open source (EOS, which raised $4.2 billion in the most successful ICO ever). Unicorns often embrace risk (Tesla). Unicorns are often inspiring, offer an exciting emerging technology. Don’t expect a unicorn technology to be completely finished or some app made in a garage by students. Not the biz plan of, “All we need is a marketing.”
Investment Strategy: Unicorns
Venture Hollywood is an exciting alternative to low tech me-too investments that don’t move the needle. For intelligent investors who dream not only of big unicorn returns, but of technological adventure, business fame and making a difference to future generations.
If you’re an investor who’s sat through as many pitches as we have, you may have thought to yourself, why do so many startups seem so lame? Investors are rarely getting to see future unicorns because the venture experts doing the vetting are trying to minimize risk rather than maximize gain. By the time a unicorn looks safe to the typical venture associate, it is way past the time an investor wishes he or she had invested in it.
How Much to Invest
For the ultimate safe bet, wealth managers may keep their portfolio 100% in consistent, dividend-paying stocks like Johnson & Johnson. More aggressive investors put some or all of their funds into high tech. Investors seeking a balanced portfolio may want to place 15% of AUM in potential unicorns. How much is that?
|Small Family Office||$50,000,000||$7,500,000|
|Large Family Office||$150,000,000||$22,500,000|
Investing in future unicorns seems higher risk, but also has the potential to outperform the other 85% of a portfolio that’s in real estate and stocks. All high tech ventures are relatively high risk. Unlike real estate, there’s no physical asset to sell if a venture goes sour. When evaluating startups, look for the big upside, not the low risk. The winning strategy in the hits-based business of startups is finding unicorns, not minimizing risks.
Venture Hollywood is capitalized through research grants, founders funds and private equity.