Irvine-based VCNetwork, an online matchmaker that aims to connect startups and venture capitalists, has launched in Irvine.
Longtime OCer Jenny Q. Ta joined with Shinta W. Dhanuwardoyo, founder of Bubu.com in Indonesia, to create the online network.
Ta was an investment banker and is the founder and chief executive of Sqeeqee.com, a social media website and app that gives individuals and entities the ability to generate revenue by hosting ads and selling goods on its e-commerce marketplace.
Dhanuwardoyo is the founder and chief executive of Bubu.com, one of the first Internet companies in Indonesia.
Ta said her travels as an entrepreneur exposed a perceived problem she wanted to solve: Most venture capitalists only want to talk to startups who know someone in their network. So the duo created the VCNetwork to act as a bridge in connecting VCs with startups, Ta said.
“I’ll hold hands with that founder and make sure they get to sit down with at least one venture capitalist in our network and get the conversation going,” Ta said. “That’s all they want—just one shot—and that’s my goal, to do that.”
The network started with 300 VCs in its database and Ta and Dhanuwardoyo investing $500,000 of their own capital for startups using their network to look for funding. They intend to expand the fund in the future, Ta said.
“While I am an OC girl, my goal is to attract a lot of global investors to join our network, and hopefully when that happens … our fund will get larger and larger and benefit local startups right here in OC.”
“Show Me the Pitch”
Super sports agent Leigh Steinberg is looking to make a comeback of his own with the recent launch of a venture capital initiative in Newport Beach. Steinberg once counted a roster of sports luminaries as clients, and the movie “Jerry Maguire” was loosely based on his career.
His latest venture follows some personal and professional stumbles and comes in a partnership with private equity firm Alpha Strategies, based in Irvine.
The partnership will seek to leverage Steinberg’s relationships from Steinberg Sports & Entertainment, the Newport Beach agency he leads with COO Chris Cabott.
It intends to invest in emerging, high-growth companies and startups that are sports-related, including med-tech, health and nutrition, TV and movie content, and online and in-stadium applications, according to Jay Rogers, founder and president of Alpha Strategies.
Steinberg has been involved in a variety of facets of the sports world in his 40-plus years as an agent, including consulting on the “Jerry Maguire” movie and facilitating several stadium deals. He also is a longtime proponent for the research and development of equipment that can help reduce the long-term effects of sports-related concussions.
“Where this gets exciting is many of these things are within our core competency,” Steinberg said. “If we find the right helmet that greatly reduces damage from concussions, I have relationships in high school, college and pro (football) to help these investments thrive and the ability to publicize them through social media.”
Rogers said the fund is seeking to raise $50 million to start. The venture officially launched Feb. 6 at Steinberg’s 29th annual Super Bowl party in San Francisco.
The Fast Pitch
Tech Coast Angels of Orange County will offer a $20,000 top prize for the best fast pitch as part of an inaugural celebration to honor OC’s startup community on March 10.
TCA investors will provide coaching sessions to all applicants who apply on how to develop a concise, 60-second pitch.
The deadline to apply is Feb. 14, and TCA will choose 10 finalists to pitch in front of the judging panel at the event. The panel, along with the audience, will determine the winner.
iBesties
The Cove 1 Fund recently announced its second investment: $250,000 in Irvine startup iBesties, a toy company that will include dolls, books and online elements intended to put chic into science.
The $5 million fund is a for-profit LLC run by three managers: John Kensey, Hans Imhoff and Fred Selby. The three angel investors liked the prospects of a quick return, according to Kensey, who serves as lead fund manager.
The cash for iBesties is part of a $750,000 seed round of financing the company plans to use to exhibit at Toy Fair NYC 2016, Chief Executive Gina Heitkamp said. The brand is expected to launch in a major retailer, which she said she can’t disclose yet, on Aug. 1.
“We have several other funds interested in doing follow-on investments, so the total $750K should close by the end of March at the latest,” she said.
Heietkamp and her sister started working on iBesties full time in August 2014 after winning UCI’s Business Plan Competition. The company hopes to empower the next generation of female tech entrepreneurs, she said, adding that the target market is girls ages 6 to 10.
“The toy industry is a tightly knit and intricate ecosystem,” said Tracy Kwiker, a member of the diligence team that reviewed and recommended the company for investment. “Gina and her team at iBesties have done an outstanding job learning and successfully becoming a part of that ecosystem. The Cove Fund has great confidence that the team will do an equally outstanding job executing at this year’s Toy Fair and throughout the 2016 holiday season.”
