A Newport Beach investment firm transitioning out of real estate and into venture capital deals is raising an approximate $100 million fund.
Cambridge Companies SPG opened its office about 3 ½ years ago to make real estate deals in California and Nevada and venture capital investments in U.S.-based companies. It shares an office with Pelican Point Investment Group, with which it’s done six deals, said Filipp Chebotarev, Cambridge chief operating officer.
Cambridge has been investing mostly in distressed real estate properties since Chebotarev and his sister, Polina Chebotareva, joined the firm as partners in 2011 and “made a killing,” Chebotarev said. Prices for real estate more recently have shot back up, so Cambridge isn’t finding as many good deals, he added.
It is, however, finding “compelling opportunities in the venture capital space.”
Cambridge isn’t a seed investor, he noted. It’s more of a growth-capital investor that looks for revenue-earning companies that need an infusion of capital to take their business to the next level.
Cambridge’s venture capital and real estate portfolio is at approximately $300 million, with no debt, he said. The company had been investing 80% of its funds in real estate and 20% into venture capital deals.
“However, as the real estate market continues to heat up, that pendulum will swing, and we are heading towards a 70/30 split,” he said.
The company will start focusing exclusively on VC deals once the $100 million is raised for the venture fund, he added.
American Dream
Aliso Viejo-based startup that created a line of wipes and washes for produce is now on the Home Shopping Network.Â
Eat Cleaner was featured in an Oct. 25 episode called “The American Dream,” which focused on entrepreneurs who’ve invented something “truly unique,” and tracked their journeys as they try to become “household names,” founder Mareya Ibrahim said.
Getting on Home Shopping Network was a direct result of being featured on entrepreneurial TV show “Hatched” in September. The show features companies that present their products to a group of retail experts and entrepreneurs to try to persuade them to invest. She got thumbs up from all of them, including representatives of HSN, Ibrahim said. She is still in discussions with the others.
“I am truly honored to have been selected (by HSN) and to hopefully have the opportunity to encourage a whole new generation of inventors pursuing their dreams.”
Raise Goal Exceeded
A Newport Beach-based company—one of the first to use a new fundraising mechanism—beat its fundraising goal by 130%.
Youngry raised $65,000 from more than 140 investors during its 75-day campaign, co-founder Ash Kumra said.
The company, which soon will launch its media platform with news, content and e-commerce that celebrates the entrepreneurial lifestyle and spirit, had set a minimum target of $50,000 with a minimum investment of $20 and a company valuation of $2 million.
It used the fundraising mechanism of equity crowdfunding for unaccredited investors, a process known as Title III that took effect in May, using platform Republic Inc., an offshoot of San Francisco-based equity crowdfunding platform AngelList for accredited investors that’s owned and operated by New York City-based OpenDeal Inc.
Four campaigns have launched since Republic started in mid-July, and Youngry is the first to close, said Kevin Valsi, head of business developement with Republic. Youngry closing first is a measure of its success, as all four companies launched around the same time, he added.
Youngry also has developed content and revenue partnerships with entrepreneurial organizations that include New York City-based WeWork, San Mateo-based Draper University and Amazon Exclusives, a digital marketplace for customers to check products and services from “up-and-coming” companies. Kumra said he couldn’t disclose the terms.
Youngry plans to launch in December.
Philanthropic Pursuits
Irvine-based SetSchedule held an event on Oct. 15 in honor of the New York City-based American Technion Society. The society supports the Technion-Israel Institute of Technology, which ranks among the world’s leading science and technology universities.
“As a rapidly-growing tech startup, we at SetSchedule know that early support to institutions of learning are crucial for the next generation of innovators,” said SetSchedule Chief Operating Officer Udi Dorner. “We are proud to support the ATS and initiatives like it in order to share our success and encourage new thinkers and inventors to change the world.”
SetSchedule participates in several philanthropic initiatives. It said it’s donated more than $15,000 this year to various charities.
The company focuses on placing real estate agents with verified appointments directly in front of vetted homeowners and investors actively looking to buy and sell. The membership-based service helps agents reduce time and money traditionally spent on tracking down potential leads for real estate and creating marketing materials to acquire appointments.
