C-Suite Quarterly - New York

VISIONARY OF THE YEAR Chris DeWolfe, Jam City

NEXTGEN VISIONARIES

Michael & Daniel Broukhim Geoffrey Chaiken Steve Gatena Heather Hasson & Trina Spear Sarah Kauss Aaron Levant C-SUITE QUARTERLY NEW YORK | LOS ANGELES INNOVATION & TECHNOLOGY Q1 2019

[40 UNDER 40] MOST INNOVATIVE FOUNDERS

NextGen of the Year

PAYAL KADAKIA ClassPass has become a health-and-wellness platform valued at more than $500M. Founder Kadakia talks about the road to success and finding the time to honor her own artistic expression

C1 - DeWolfe

A NEW PARADIGM FOR VENTURE CAPITAL INVESTMENTS

By Michael Loeb, Loeb.nyc PLUS: Top global tech cities; Luxury electric / hybrids; Meet & retreat at Pelican Hill; New York’s Spring Place in Beverly Hills; ClassPass and Hawke Media’s Innovative Offices

NEXTGEN OF THE YEAR Payal Kadakia, ClassPass

NEXTGEN VISIONARIES

Michael & Daniel Broukhim Geoffrey Chaiken Steve Gatena Heather Hasson & Trina Spear Sarah Kauss Aaron Levant

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C-SUITE QUARTERLY LOS ANGELES | NEW YORK INNOVATION & TECHNOLOGY Q1 2019

[40 UNDER 40] MOST INNOVATIVE FOUNDERS

Visionary of the Year

CHRIS DEWOLFE As the co-founder of MySpace, he helped shape the LA tech ecosystem—now, DeWolfe is at it again with Jam City, the globally recognized developer of mega-popular mobile games

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A NEW PARADIGM FOR VENTURE CAPITAL INVESTMENTS

By Michael Loeb, Loeb.nyc PLUS: Top global tech cities; Luxury electric / hybrids; Meet & retreat at Pelican Hill; New York’s Spring Place in Beverly Hills; ClassPass and Hawke Media’s Innovative Offices

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Features Q1 2019 — Vol. 11 No. 1 Los Angeles & New York City Innovation & Technology

OPINION

NEXTGEN VISIONARIES Los Angeles + New York 50 With fresh thinking and deep knowledge of their customers, MICHAEL and DANIEL BROUKHIM turned the lifestyle blog FabFitFun into a unicorn subscription and media business 52 Changing the industry pill by pill, GEOFFREY CHAIKEN, founder of Blink Health, is helping people easily and affordably access their medications 54 STEVE GATENA developed the app Pray.com to connect faith communities, developing a social media platform specifically for spiritual connections

55 Making their own medical miracle, entrepreneurs HEATHER HASSON and TRINA SPEAR are making stylish scrubs profitable with FIGS

40 PRIMED FOR SUCCESS A new paradigm for venture capital investments

by Michael Loeb, Founder & CEO, Loeb.nyc

56 Founder of NTWRK, AARON LEVANT has a new approach to online interaction as well as an admirably unorthodox background 57 With a conscious soul and head for business, SARAH KAUSS has taken over the water-bottle industry with S’well

58 62 50 40 TOC

NEXTGEN OF THE YEAR

VISIONARY OF THE YEAR

ClassPass has become a healthand-wellness platform valued at more than $500M. Founder Payal Kadakia talks about the road to success and finding the time to honor her own artistic expression

As the co-founder of MySpace, his entrepreneurial instincts helped shape LA tech—now Chris DeWolfe is at it again with Jam City, the globally successful deveoloper of mega-popular mobile games

06

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Contents

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DESIRABLES

35 INNOVATION & TECHNOLOGY

24 Air Take off in the Icon A5, an exciting sportflying aircraft that allows to you land on water

27 18 Gifts & Gadgets As temperatures climb, we all look to improve our overall fitness and health. Here, some of the best items to help you— or someone close to you—live long and prosper

27 Land Next-generation electric hybrids are more than just environmentally friendly—they’re sleek, speedy, and tech-savvy luxury vehicles that will make you the envy of the freeway 28 Water With a solar- or electric-powered yacht, you can go green while sailing on the ocean blue

TOC

20 Cigars Form, function, and taste in tobacco blends from the Caribbean and Central America

30 Private Club Report Spring Place, a favorite socialwork space and club in Tribeca, brings its thoughtfully curated ecosystem to Beverly Hills

22 Style Whether traveling the world, training for a marathon, or enjoying a friendly game of golf, nothing is better than showing your fashion flair and spirit with these items

32 Buying Time A look at how the industry is changing to keep up with thetimes, as craftsmanship, elegance, and innovation coexist

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43 44 42 Innovative Office An inside look at the open-plan space of Hawke Media in Los Angeles and the wellnessinspired offices of ClassPass in New York 44 NextGen: 40 under 40 Meet this year’s class of the Most Innovative Founders under-40 who are disrupting their industries, or creating new ones

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Departments 10 12 14 76 77 103 112

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Masthead Editor’s Note Contributors C-Suite Advisors™ Directory Advertiser Directory The Network C-Suite Quoted

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This edition’s lineup of C-Suite Advisors™ highlight various topics including finding the right financial advisor, innovative technology for wealth management, how to be prudent in new business investments, and more

95

C-SUITE ADVISORS™

DESTINATIONS

CULTURE & TASTE

78 Path to Prosperity Howard Grobstein Grobstein Teeple LLP

70 Meetings & Retreats Book one of these stunning locations for a corporate retreat that will get people talking, thinking, and team building

96 Exhibits & Performances In Los Los Angeles honors, Grand Avenue leader MOCA celebrates its 40th anniversary with 40 for LA, while New York praises the art of marketing with The AD Art Show

80 Building a Culture of Innovation Jim Freedman Intrepid Investment Bankers LLC, a subsidiary of MUFG Union Bank 82 Modern Family Office Robert Dalie The Summa Group of Oppenheimer & Co., Inc. 84 23andMe and Your Financial Future Martin Levy CorpStrat 86 Disruptive Tech: Trends in Legal Services Delivery Mark Levinson Thompson Coburn LLP

72 World’s Top Tech Cities Tech isn’t just for Silicon Alley, Silicon Beach, or Silicon Valley—in cities around the globe, excitement and innovation are buzzing 73 Golf Getaway An Arnold Palmer-designed golf course, incomparable tropical beauty, white-sand beaches, first-class resorts and dining— Peninsula Papagayo, Costa Rica is a dreamy all in one

98 Proprietors’ Profile These NextGen chefs all carry a youthful take on contemporary cuisine rooted in classic style and varied cultures

100 Fine Dining New restaurants for your radar in Los Angeles and New York 102 Required Reading and Listening A selection of books and podcasts that explore the many sides of tech: dark and light, troubling and inspirational, frightening and fascinating

TOC

73

88 The Role of Copying in Innovation Steven Sereboff SoCal IP Law Group LLP 90 Buying the Next Unicorn Sander Zagzebski Greenspoon Marder LLP

CSQ Q1 2019

09

LA Cover Chris DeWolfe Location Culver City, CA

NYC Cover Payal Kadakia Location New York City

C-SUITE QUARTERLY

CSQ.COM

Photos Ethan Pines Thomas Wasper

Publisher & Editorial Director David L. Wurth

C-SUITE ADVISORS™

ADVERTISING & MARKETING

INQUIRIES

Elite C-Suite Advisors Robert Dalie Howard Grobstein Jim Freedman William Mark Levinson Martin Levy Gary Rabishaw Steven C. Sereboff Sander C. Zagzebski

Marketing Director Gioia Wurth

Advertising advertising@csq.com

Manager, C-Suite Advisors™ Robert Kenney

C-Suite Advisors™ advisory@csq.com

Marketing Assistants Chris Coronel Robert Bramley

Editorial editorial@csq.com

CONTENT Managing Editor Samantha Brooks Art Director Dima Kuzmichev Designer Olesya Plugovenko Associate Editor Jayson Hugh Copy Editor Dora Dalton Contributing Editors Ryan Byers Karine Joret Bryan McKrell Contributing Writers Allison Brunner Jason Dean Brittany Fuisz Norah Lawler Michael Loeb Anasia Obioha Photographer Ethan Pines Thomas Wasper Illustration Maxim Zudilkin

C-SUITE MEDIA ADVISORY BOARD

Masthead

Larry Braun Diana Derycz-Kessler Jim Freedman Paul Kessler Steve Lehman Robin Richards James Segil Drew Sheinman Irv Zuckerman

Marketing Partner Hawke Media

OPERATIONS Accountant Stan Arutti Bookkeeping Maggie Bialack Legal Scott Barlow Steven C. Sereboff Distribution Right-Way Distribution

Events events@csq.com Reprints reprints@csq.com Subscriptions subscriptions@csq.com

CSQ / C-Suite Quarterly is published four times per year by C-SUITE MEDIA, INC. It is mailed to C-level executives, business owners, and ultra high-net-worth residential communities and distributed in upscale locations throughout Los Angeles and New York.

LOS ANGELES C-SUITE MEDIA, INC., PO Box 8696 Calabasas, CA 91372 | 818.225.8168 NEW YORK C-SUITE MEDIA, INC., 1185 Avenune of the Americas, 3rd Floor, New York, NY 10036 All rights reserved. CSQ, C-Suite Advisors™, C-Suite Advisory™, and C-Suite Quarterly are registered trademarks of C-SUITE MEDIA, INC. No articles, illustrations, photographs, or any other editorial matter or advertisements herein may be reproduced without permission of copyright owner. C-Suite Quarterly and C-Suite Media, Inc. does not take responsibility for the claims provided herein.

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EDITOR’S NOTE

Creating Innovation

Editor’s Note

Visionary of the Year Chris DeWolfe, and CSQ Founder & Publisher David L Wurth at the new Jam City offices in Culver City, CA

Back in 2002, when I was in college, I joined MySpace for its intended use: to meet girls. The chatting, the music downloads, the photo sharing…I was all over it. Fast forward 17 years, and its co-founder, Chris DeWolfe has me addicted to another digital sensation: Panda Pop, the wildly popular mobile video game his company Jam City created that has users strategically popping their way to saving pandas. I was never into video games as a kid growing up, but after catching up with DeWolfe in his new Culver City offices and seeing how the game has taken off across continents, I had to see for myself what the fuss was about. I get it. My wife gets it. We’re all hooked. And it’s obvious why this company is now worth billions. I’m excited to share DeWolfe’s profile on page 62, so you can read more about why he deserves to be this year’s Visionary of the Year for Innovation & Technology.

DeWolfe shares the cover with our NextGen of the Year, Payal Kadakia, Co-founder of New York–headquartered ClassPass, the ingenious app that allows users to book classes at a variety of health clubs and wellness studios with a single membership.

Kadakia is well known, well liked, and as the executive chairman of a company now worth an estimated $600M, she’s killing it.

Read all about her on page 58.

DeWolfe and Kadakia are just some of the amazing talent profiled in this Innovation & Technology issue, which highlights disruptors and inventors in fields ranging from health care to fashion. When we first started doing this issue theme in 2012, the intention was to highlight Los Angeles as a leading center

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for VC funding, based on the access to capital and amount of entrepreneurial talent flocking to the city. Back then, we profiled Elon Musk and his companies SpaceX and Tesla, still in their earlier days. Now, just a handful of years later, Musk has a plan for sending people to Mars and it seems as though every other car driving down Sunset Boulevard is a Deep Blue Metallic Model S. Technology is moving quickly, and we hope you enjoy this issue as it profiles the people and companies leading the way, whether they’re changing the face of everyday household goods (see page 57 for the profile on Sarah Kauss) or taking on the next frontier of social networking (read about Steve Gatena on page 54).

In addition to featuring those leading entrepreneurially, we share with you the necessary advisors to help with everything from structure and implementation to accounting and investment banking. Catch advice from business services leaders in this edition’s C-Suite Advisors™ section, which includes insights on how to “Build a Company of Innovation” (page 80) and investor advice on “Buying the Next Unicorn” (page 90).

I’m thrilled to be sharing the stories of those breaking the mold to change the future and connecting them though the CSQ platform to effect even greater progress.

David L. Wurth Founder & Publisher david@csq.com

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Contributors

ETHAN PINES, who captured Chris DeWolfe for the cover, has photographed CEOs from an array of tech giants (Google, Tesla, Instagram, Intel, Uber, Nvidia, Yahoo, et al) in his award-winning 18 years of shooting. His editorial clients include Forbes, The New York Times, The Wall Street Journal and Wired. He has shot ad campaigns for Dolby, Solarcity, Universal Studios, Casio, United Pharmaceuticals and many others. In addition to his bachelors from U. Penn and masters from Columbia, he is an Eagle Scout and a Nitrox-certified scuba diver. He lives in L.A.’s rural hills with his wife and a bunch of weeds. More at www.ethanpines.com.

Chris DeWolfe: His Space at the Top, p. 62

DORA DALTON is a writer, editor, outdoorswoman, and community volunteer. A Los Angeles native and graduate of Pitzer College, she now runs a San Diego–based contract communications firm, providing expert writing and editing services for nonprofits, healthcare systems, and corporations, as well as literary, popular, and institutional magazines and websites.

Geoffrey Chaiken, p. 52 Steve Gatena, p. 54 Heather Hasson & Trina Spear, p. 55 Aaron Levant, p. 56

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ANASIA OBIOHA grew up in Oakpark, MI but has resided in California for 11 years.

Her passion for storytelling started in her pre-teens prompting her to obtain a degree in journalism at Michigan State University.

She also holds a Master of Business Administration Degree from Woodbury University.

In addition to writing about everything from entertainment to feature stories on entrepreneurs, Anasia works as a public relations consultant for her own company Ascend Brand Communications and as a plus size model. She enjoys spending time with her husband, 9 month old son and 2 year Labrador, watching movies, traveling, cooking and reading books.

Michael & Daniel Broukhim: Outside the Box, p. 50

Contributors

NORAH LAWLOR is the Founder and CEO of New York/LA based, luxury lifestyle Digital Branding and PR Agency Lawlor Media Group, Inc which provides strategic brand development services to a clientele comprised of national and International clients encompassing real estate, hospitality, charity, fashion, travel, beauty, celebrities and high-profile personalities. Norah is also an avid social chronicler on travel and the scene.

World’s Top Tech Cities, p. 72

MICHAEL LOEB is a serial entrepreneur with bold exits with companies like Synapse Group and Priceline.com. He is the founder and CEO of Loeb.nyc—a company factory and venture lab with a deep infrastructure in marketing, operations and tech development.

Primed for Success, p. 40

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18 Gifts & Gadgets 20 Consummate Connoisseur 22 Style 24 Air 26 Land 28 Water 30 Private Club Report 32 Buying Time

Desirables

Part 1

Desirables Cover Page

Explore the ICON Aircraft A5 which combines air, water, and land navigation into one—transforming the experience of sport flying (p.24)

CSQ Q1 2019

17

GIFTS & GADGETS

Get Up and Go

Desirables - Gifts

POLAR H10 With a new lighter weight and four color options (black, orange, green, and gray), the Polar H10 heart-rate sensor is the new go-to for precision workouts. The device syncs with numerous fitness apps, gym equipment, and sports and smart watches, so you’ll know when you’re pushing your limits and when you’re phoning it in. $89.95 polar.com

As temperatures climb, we look to improve our overall fitness and health with nextgen technology.

Here, some of the best items to help you - or someone close to you - live long and prosper

By Karine Joret 18

DESIRABLES

BOSE SOUNDSPORT WIRELESS Made with water-repellent mesh in the open ports, the Bose SoundSport wireless headphones aren’t afraid of sweat, rain, or workouts. The earbuds come in four different colors—orange, blue, brown, and purple—and form an ergonomic seal to help deliver the crystal clear sound Bose is known for. Added value: The company has teamed with Tile so that you can find you’re SoundSports when you’re ready to move. $149.95 bose.com

PELOTON TREAD Just like its hit stationary bike, Peleton’s new Tread promises to bring the thrills of live cardio and strength workouts to your home. Top fitness instructors guide you through running-, jogging-, or walking-based workouts on your schedule

Desirables - Gifts

to fit your needs. Off the treadmill, the cardio workouts are complemented by instructor-led strength training, giving users a well-rounded fitness routine.

Peloton Tread: $4,295 Tread Works Packages: $349 onepeloton.com

GARMIN VIVOMOVE HR Style meets function in Garmin’s Vivomove HR, which monitors your heart rate, sleeping, calories burned, and stress levels. The smart technology also enables texting and notifications, and with its sleek design more reminiscent of a luxury timepiece than a digital watch, it’s one ofthe best-looking fitness trackers on the market. $349 garmin.com

CSQ Q1 2019

19

CONSUMMATE CONNOISSEUR

Cigars

Form, function, and taste in tobacco blends from the Caribbean and Central America Curated by David R. Weiss, owner, Lone Wolf Cigar Company

DAVIDOFF 702 SERIES SPECIAL R Dominican Republic Davidoff is known for sophistication and balance. They employ expert craftspeople who uphold the consistency of the brand’s quality at every turn. But even this well-oiled machine isn’t resting on its laurels. In 2009, the company released a special edition wearing a brand-new wrapper simply titled 702. This zesty outer leaf didn’t grace humidor shelves again until 2017 when Davidoff released the 702 line globally as a member of its regular production blends.

Aficionados understand the importance of wrapper leaves and the sheer amount of flavors they contribute to a cigar’s flavor profile—and the 702 is a welcome addition. The unique wrapper is a proprietary hybrid of three Cuban seeds and was tirelessly tested until just right. In this rendition of the blend, the 702 sits atop the smooth binder and filler leaves of the fan-favorite Aniversario Special R. The combination of spicy, sweet, and savory makes the 702 a three-course meal all on its own.

DESIRABLES

Wrapper Ecuadorian 702 Binder Dominican Republic Filler Dominican Republic Why So Special?

One-of-a-kind hybrid wrapper

ARTURO FUENTE HEMINGWAY SIGNATURE Dominican Republic Arturo Fuente is one of the world’s largest and most respected cigar brands; we are constantly recommending their blends for their consistent, dazzling flavor profiles and international appeal. Despite decades of excellence, the Fuente family still recognizes the need to stay modern and the newly redesigned Fuente factory reflects that perfectly. It’s a museum-quality workspace where tobaccos are aged and rolled into some of the best cigars on the planet.

The company’s leader, Carlos Fuente Jr. (Carlito), worked tirelessly on building a new space that kept their traditions strong. The fabled Opus X aging room?

Untouched. The room where 2017’s cigar of the year, the Don Carlos Eye of the Shark, is rolled? Untouched. The magic of Tabacalera A. Fuente y Cia was not to be tampered with, just taken to the next level. The Hemingway line is one of those classic Fuente blends that has remained a staple in humidors for decades; it’s both a testament to the company’s past and the foundation for its bright future.

Size 6 X 46

RAMON ALLONES BY AJ FERNANDEZ TORO Nicaragua AJ Fernandez is currently the choice blender of the big brands. They’ve turned to his expertise time and again to breathe new life into old-school lines, and he has yet to disappoint. This time around, Fernandez was entrusted by General Cigar Company with one of its heritage brands, Ramon Allones. In the Cuban cigar portfolio, Ramon Allones is a niche but well-respected brand known for its full-bodied flavors, but in the United States the non-Cuban rendition was largely seen only in mail-order magazines. That is, until last year’s spring launch party in New York of Fernandez’s take on the brand—and this blend is a triumph. It’s strong like any good Ramon Allones should be, but it’s loaded with pleasant flavors of cocoa, nuts, and sweetness. Fernandez chose the rare medio tiempo leaf as the blend’s wrapper (remember last issue’s Cohiba Behike? And that was just filler leaf!). Once again, Fernandez has made what was old new again and invites cigar lovers to rediscover what made certain brands classics in the first place.

Size 6 X 52

MONTECRISTO ESPADA GUARD Nicaragua One of Nicaragua’s many environmental wonders is the grand lake bearing its name: Lake Nicaragua. The largest lake in Central America, it features many ecological wonders … including sharks. Sharks. In a lake. While I may avoid it for swimming, I would definitely charter Quint’s Orca and set course for Ometepe Island. This island’s rich volcanic soil is producing some of the most unique tobacco in the world. Due to the land’s phenomenal drainage, the sweet, earthy tobacco it grows can be produced all year round. Montecristo called upon the Plasencia family, one of Nicaragua’s foremost tobacco growers and early experimenters on Ometepe, to create this fine cigar for the company’s first major foray into Nicaraguan leaves. The result is a hearty, woodsy dream with that wonderful Ometepe sweetness to keep you longing for the next puff.

Size 6 X 50

Desirables - Cigars

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Size 4 7/8 X 50

Wrapper Cameroon Binder Dominican Republic Filler Dominican Republic Why So Special?

The brand-new Tabacalera A. Fuente y Cia factory

Wrapper Nicaraguan Medio Tiempo Binder Nicaragua Filler Nicaragua Why So Special?

The reimagining of a classic brand

Wrapper Nicaragua Binder Nicaragua Filler Nicaragua Why So Special?

Ometepe tobacco

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Now Selling From The $3 Millions I Sales Gallery Open Daily | 866.387.6206 | LiveOneCoast.com PLANS, PRICING, FINANCING, TERMS, AVAILABILITY AND SPECIFICATIONS ARE EACH SUBJECT TO CHANGE AND/OR PRIOR SALE WITHOUT NOTICE AND MAY VARY BY UNIT AND/OR LOCATION. SELLER RESERVES THE RIGHT TO MAKE MODIFICATIONS, REVISIONS AND CHANGES TO FEATURES, tSPECIFICATIONS, PLANS, ELEVATIONS AND PRICING WITHOUT NOTICE AND/OR OBLIGATION AS IT DEEMS DESIRABLE IN ITS SOLE AND ABSOLUTE DISCRETION. SQUARE FOOTAGES ARE APPROXIMATE AND INCLUDE ENCLOSED SPACES IN WALLS AND OTHER STRUCTURAL ELEMENTS. THESE ESTIMATES WILL BE GREATER THAN SQUARE FOOTAGES DETERMINED BY MEASURING IN-ROOM DIMENSIONS FROM WALL TO WALL. NO PURCHASE AGREEMENT MAY BE NEGOTIATED OR SIGNED BY A PROSPECTIVE BUYER FOR THE PURCHASE OF A HOME UNTIL THE COMMUNITY’S APPLICABLE CONDITIONAL OR FINAL PUBLIC REPORT HAS BEEN ISSUED BY THE DEPARTMENT OF REAL ESTATE (CALDRE). ALL ILLUSTRATIONS ARE ARTIST’S CONCEPTS ONLY, ARE NOT TO SCALE AND ARE SUBJECT TO CHANGE IN ACTUAL PRODUCTION. MODELS DO NOT REFLECT RACIAL PREFERENCE. CALDRE LICENSE #01878688. ©2019 ETCO HOMES.

STYLE

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Desirables - Style 6.

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WOMEN’S ADIDAS ORIGINALS TRACK JACKET

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DESIRABLES

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AIR

Surf and Turf Take off in an excitingly different kind of aircraft that allows to you land on water

CSQ&A THOMAS WIENERS PRESIDENT/COO ICON AIRCRAFT Q: What is the vision for ICON

Aircraft in the industry of sports flying in the next 5 to 10 years?

Desirables - Air ICONIC ADVENTURE ICON hopes its A5 Light Sport Aircraft will help just about anyone experience the joy of flying. One part each plane, boat, and car, the sleek, lightweight, amphibious sport plane lets you and a guest land just about anywhere—whether it’s a dirt strip or body of water.

In aiming to create the safest possible small aircraft, ICON

has achieved unmatched spinresistance, even when reaching speeds up to 110 mph. Pricing runs $400K, all inclusive, and requires only a sport pilot license to fly. Plus its wings fold back, allowing it to be compact and light enough to pull on a trailer behind an SUV, allowing for takeoffs and landings from a variety of locations.

Joyful flying indeed. iconaircraft.com

A: We’d like to make personal adventure flying more accessible to those who want it. The A5 is an incredible airplane that’s unlike anything else...It’s fun, versatile, safe, beautiful, easy… But the A5 is just the beginning and we are all-in on bringing personal aviation to the masses.

Q: What is unique about the sport flying experience in the ICON? A: The A5 will change everything you thought you knew about flying. Much of today’s aviation– and the perception of aviation–is utilitarian. Going from Point A to Point B as quickly as you can, hauling as many people and as much cargo as possible. That’s the opposite of the A5. This is about fun, and opening up adventures never before thought possible.

Q: What are some challenges that you face now to bring the flying experience to a broader audience?

A: We’re still in a general awareness building phase. A lot of people, both pilots and non-pilots, don’t know about the ICON A5 or about Sport Flying, and we need to inform people about how incredibly fun and easy it is to fly. Becoming a pilot is one of life’s most rewarding accomplishments. We’re expanding the category to bring more people in. Give us a month and we can make you a sport pilot.

24

DESIRABLES

Travelstore

Take Your Business Travel to the Next Level

2019 KARMA REVERO ALISO EDITION Born and bred with a passion for the California lifestyle, the 2019 Karma Revera Aliso Edition features a luxurious internal design, custom carbon fiber wheels, anodized brake calipers, and specialized color schemes to express its connections to the West Coast. On top of the traditional Karma Revero features, such as solar panels and brake energy conversion to generate hundreds more miles each year, the Aliso emphasizes its uniqueness with signature badging in each of the just 15 total units worldwide.

Top Speed 125 mph 0-60 5.4 secs Engine 2-liter, 4-turbocharged M Ecotec engine Transmission 1-speed automatic Max Power 403 hp at 5,300 rpm Starting at $145,000 karmaautomative.com LAND

Power Rangers

Next-gen electric hybrids are more than just environmentally friendly—they’re sleek, speedy, and tech-savvy luxury vehicles that will make you the envy of the freeway—or open road

Desirables - Land

By Jayson Hugh

BENTLEY BENTAYGA HYBRID Bentley has breathed its essence into the next-generation Bentayga Hybrid. The vehicle’s multimedia system allows you to monitor and control the distribution of power, achieving the ultimate energy efficiency. Plus, the Bentley heritage promises seamless integration of the two power sources.

Top Speed 158 mph 0-60 5.2 secs Engine 3.0 liter, V6 engine, with E-Drive Transmission 8-speed automatic Max Power 443 hp at 6,000 rpm Starting at $156,700 bentleymotors.com

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DESIRABLES

PORSCHE PANAMERA 4 E-HYBRID The Porsche Panamera 4 E- Hybrid is the ultimate symbol of the future of automotive technology.

The model is equipped with virtual exterior mirrors that replace side vision with the more reliable and simultane-

ous side perception on-screen, resulting in a seamless, unified, linear appearance, enhancing the vehicle’s futuristic design.

Moreover, the driver-oriented interface panel with eye-tracking navigation, combined with a high-voltage battery, provide an exceptional driving experience with an impressive performance of 300 miles or more.

Desirables - Land

Top Speed 155 mph 0-60 3.5 secs Engine 2.9 liter, twin turbocharged V6 Transmission 8-speed automatic Max Power 542 hp at 6,000 rpm Starting at $102,900 porsche.com

2019 TESLA MODEL S Electric car disruptors Tesla have created the 2019 Model S with passion and extraordinary speed. With a whopping 100 kWh battery pack, it carries an impressive electric range and quick acceleration, which can be unlocked to achieve zero to 60 in just 2.4 seconds. On top of incredible performance, the Model S supplies surprisingly abundant cargo space, comparable to large sedans, for maximum functionality.

Top Speed 155 mph 0-60 2.4 secs Engine Single electric motor Transmission 1-speed automatic Max Power 518 hp at 6,100 rpm Starting at $67,250 tesla.com

CSQ Q1 2019

27

WATER

Here Comes the Sun

With a solar- or electric-powered yacht you can go green while sailing the ocean blue

By Dora Dalton

ELECTRIC SPIRIT Spirit Yachts is known for combining classic design and modern technology. Now it has debuted its newest innovation, the fully electric Spirit 44E yacht. Just as electric cars generate power through braking, the Spirit 44E’s propeller recharges the 48 1.9kWh batteries through hydro generation, so you’ll power up while you sail. The craft also includes two solar panels fully integrated into the deck to maintain aesthetics.

Indeed, you’ll still find Spirit’s sumptuous wooden craftsmanship throughout. This model’s clean technology doesn’t stop at the motor: Its cloth sails can be recycled when they wear out and all lighting is LED. Sustainable sailing has arrived—or will in 2020 when a bespoke Spirit 44E is set to launch for its first customer.

Passengers 4 Cabins 2 Length 44 ft.

Top Speed TBD spirityachts.com

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DESIRABLES

Desirables - Water

SOLAR POWERFUL Few experiences in the world are more pleasurable than sailing on the smooth, open seas with the sun shining down.

Now imagine that while you are soaking up the rays they are powering your boat’s soundless engine so that you hear nothing but waves. Silent-Yachts’ Silent 80 catamaran-style super yacht relies on 70 solar panels and the same lithium batteries used by Tesla. In addition to zero emissions, the Silent 80 needs little maintenance and has unlimited range, with a top speed of 18 knots (silent operation up to 7 knots). While you will likely adore the lack of diesel fumes, a hybrid solar/ diesel version is available that can achieve 20+ knots. But the green technology—and sizeable solar panels—don’t sacrifice a luxurious experience for passengers, with exterior and interior design by Rome’s Marco Casali of Too Design.

The lack of a large engine room means more interior space, fully customizable to your needs and taste. Exterior space includes spots for an amphibious car and a gyrocopter. The first Silent 80s, at $5M each, are set for delivery in 2020.

Passengers 10 Crew Members 2-3 Length 80 ft.

Top Speed 18 Range Unlimited silent-yachts.com

Baltaire

PRIVATE CLUB REPORT

Co-working with Culture and Community Spring Place, a favorite social-work space in Tribeca, brings its thoughtfully curated ecosystem to Beverly Hills

LA

SPRING PLACE BEVERLY HILLS, CA TRIBECA, NY

The best workplaces provide more than desks, computers, and coffee pods; they embrace creativity, nurture networking, and encourage well-being.

At Spring Place, in New York’s Tribeca neighborhood and now in Beverly Hills, shared work space meets social club, with amenities from conference spaces and hot desks to restaurants and a rooftop event space, all with hospitality services so luxurious you might just prefer work over home or hotel.

Conceived as a gathering place for a sophisticated, international, creative, and entrepreneurial community, the Tribeca club’s members include top fashion, arts, and entertainment leaders such as Irina Shayk, Alessandra Ambrosio, Rosie Huntington-Whiteley, Gucci CEO Marco Bizzarri, and Council of Fashion Designers of America President and CEO Steven Kolb. The Beverly Hills location is quickly assembling its own A-list roster.

Co-founder Francesco Costa’s vision was to provide a place where members can work productively, dine and entertain clients, and attend exhilarating evening events.

Desirables - Private Club NY

LA

LA 30

DESIRABLES

LA

“People come here to work during the day, but we are able to extend that,” says Costa. “We wanted to create a space that serves our members in all areas of their lives—a space that’s efficient and inspiring to work in, while offering the opportunity for social connection, networking, and culturally relevant and thought-provoking programming. Spring Place is uniquely positioned to offer the best of all elements.”

The 40,000-square-foot Beverly Hills location, which opened in October 2018, is tucked between The Peninsula and Waldorf Astoria hotels at 9800 Wilshire Boulevard.

The space was designed by Los Angeles’ wHY Architecture inside a building by Belzberg Architects to be both functional and inspirational, with a breezy but elegant mid-century modern aesthetic, and a fresh and lush interior.

Member perks include access to private and shared work spaces, a restaurant led by James-Beard-nominated chef Mirko Paderno, bar, and lounge, plus events that include illuminating guest speakers, exclusive screenings, workshops (think: wine tastings, cooking classes, wellness courses), and pop-ups from acclaimed chefs.

Apply online for the membership that meets your needs.springplace.com

A DAY VACATION

MALIBU COUNTRY MART OVER 65 UNIQUE BOUTIQUES AND RESTAURANTS IN THE HEART OF MALIBU

Malibu Mart

The death of the mechanical wristwatch has been written time and again over the last 50 years. The quartz revolution was certain to decimate the industry, followed by the digital revolution. Indeed, watchimaking is changing to keep up with the times, as craftsmanship, elegance, and innovation coexist.

The measure of time is constant, but how it is expressed and displayed on one’s wrist is a crucible of change

By Bryan McKrell

BUYING TIME

Time Moves On URWERK UR-105 CT

RICHARD MILLE RM 031 HIGH PERFORMANCE

AUDEMARS PIGUET MINUTE REPEATER SUPERSONNERIE

Desirables - Buying Time

The dynamic partnership of Martin Frei and Felix Baumgartner has released their latest creation with a unique twist of individuality. The Urwerk piece displays the time in a most unconventional way, with rotating satellite discs and a sequential number arrangement. The rotating disks allow the time to be displayed both digitally and analog, depending on the user’s preference. The unique tonneau-shaped case is constructed of raw bronze, which is designed to acquire a specific patina based on the activity of the owner,ultimately making each piece an individually created work of art.

Richard Mille set out to create the most consistent mechanical timepiece in history, with a goal of less than 30 seconds of variation per month. In his pursuit of timing perfection, Mille utilized an escapement that was actually created for Audemars Piguet. This particular innovation combined two distinct elements that have been used for decades in high-end watchmaking. The engineers then injected argon, an inert gas, into the case to reduce any possible friction, thereby allowing the movement to function in a virtual vacuum.

Only 10 examples of the watch in platinum will be produced. It may be the most accurate timepiece that Mille, or possibly anyone, has ever created. Only time will tell.

A minute repeater is a watch that chimes like a giant clock, harmoniously playing sounds that alert the wearer to different increments of time, such as the hour, half hour, or quarter hour. Minute repeaters were originally designed to allow someone to tell time in the dark. Few things could provide more of a conversation piece than AP’s latest minute repeater chiming away on cue. In what some refer to as the “grandest of complications,” this version boasts the loudest and most distinct chimes in the company’s history. A new striking mechanism, redesigned case back, and subtle anti-vibration technologies have allowed this 41 mm, navy-blue subtlety to really stand out.

Starting at $69,000 urwerk.com

Starting at $1.05 million richardmille.com

Starting at $325,000 audemarspiguet.com

32

DESIRABLES

CSQ&A

offers the most room for innovation, even if the other areas also represent opportunities.

EDOUARD MEYLAN CEO, H. MOSER & CIE

CSQ How much of your time is spent with the

Edouard Meylan, CEO of H. Moser & Cie, on innovative design and marketing, where the brand is headed, and how he spends his time

engineering team discussing new timepiece concepts and ideas?

EM If we consider the whole process of R&D, design, product development, with a balance between the present and the products that are coming out now, with the challenges that it entails, and the planning for the next five years, it represents between 20% and 25% of my time.

mutation of the watchmaking industry with digitalization. I would say that business models are being totally revised, so this is the field that

CSQ A recent article in WSJ Magazine stated that the most expensive item ever sold on the Chinese e-Commerce giant JD.com was an H. Moser watch. Was this significant for your brand?

EM Of course, this is significant and we are very proud. But it is only the first step. This must become recurrent. It is easier to sell entry-

H. MOSER & CIE PIONEER TOURBILLON

DE BETHUNE DB28 KIND OF GOLD

CSQ What areas of mechanical watchmaking

offer the most room for innovation?

Edouard Meylan We are living a complete

level products online but we see that things are evolving and we hope to be able to sell more and more high-value watches this way. This requires time, because we need to educate customers and such a purchase demands confidence and trust.

CSQ Where is the most growth potential for

H. Moser?

EM The U.S. will be a very strong focus for us

moving forward as we have just started to really develop this market. China as well because it is the biggest market in the world and we are starting to be well represented there since our arrival in 2018. This year we aim to open two boutiques in China.

CSQ What does H. Moser’s slogan “Very Rare”

mean to you?

EM Exclusivity, quality, and a bicentennial

knowledge.

A LANGE & SOHNE ZEITWERK

Desirables - Buying Time

A black rubber strap belies the true measure of luxurious engineering present in this watch. Inside a red-gold case with a rich midnight-blue dial decorated with a sunburst pattern, lies an in-house-created tourbillion movement with serious technical specifications. The double-hairspring movement is designed to reduce the effects of gravity on the accuracy of the watch, providing for meticulously precise timekeeping. The tourbillion complication itself can be easily detached from the movement, making servicing the watch significantly simpler, allowing for everyday wear and tear (hence the need for the durable band).

This stunning limited edition for the U.S. market was unveiled at the Miami Watches and Wonders show in honor of the blue ocean waters that are reflected in this vibrant piece.

DB has one of the strongest reputations in the watch industry for technological innovation, and this watch does not disappoint. With nearly 300 parts, and four patented pieces unique to the brand, this piece contains a triple-layer shock-absorbing system, along with a balance spring designed with a flat terminal curve. The spherical moon feature is also a DB original, bringing a distinct flair to one of the more sought-after watch complications in the industry.

A digital display in a fully mechanical timepiece, the Lange Zeitwerk is truly an engineering marvel. A massive mainspring is necessary to provide enough power to accurately rotate the disks that digitally display the changing minutes and hours. A rolling second hand builds constant visual tension as one is glued to the display, waiting for the minute disk to simultaneously shift into position. A power-reserve indicator is important to monitor because the amount of torque required to spin the disks dissipates fuel like a high- octane race car. And if your eyes are not glued to the front, the exhibition case back reveals one of the most intricate and beautiful watch movements imaginable.

Starting at $49,900 h-moser.com

Starting at $125,000 cellinijewelers.com

Starting at $77,400 alange-soehne.com

CSQ Q1 2019

33

LOS ANGELES | APRIL 17 2019

CSQ NextGen

NEXTGEN PANELISTS

36 Visionaries Alumni & Updates 38 Of Note 40 Op-Ed by Michael Loeb iNNOVATIVE OFFICES 42 Hawke Media 43 ClassPass LIST 44 NextGen 40 Most Innovative Founders Under 40 INNOVATIVE NEXTGEN FOUNDERS & CEOS 50 Michael & Daniel Broukhim, FabFitFun 52 Geoffrey Chaiken, Blink Health 54 Steve Gatena, Pray.com 55 Heather Hasson & Trina Spear, FIGS 56 Aaron Levant, NTWRK 57 Sarah Kauss, S’well NEXTGEN OF THE YEAR 58 Payal Kadakia, ClassPass VISIONARY OF THE YEAR 62 Chris DeWolfe, Jam City

Innovation & Technology

Part 2

Innovation - Cover

CSQ Q1 2019

35

36

Visionaries Alumni in Innovation & Technology

CSQ COMMUNITY AND UPDATES

VISIONARIES OF THE YEAR

2018

2016

2014

KOBE BRYANT & JEFF STIBEL Co-founders

ROB LLOYD Former CEO, Virgin Hyperloop One

ERIC GARCETTI Mayor of Los Angeles

2015

2013

Bryant Stibel was founded in 2013 to provide strategic, financial, and operational support to businesses with a focus across technology, media, and data.

Innovation - Alumni

The Bryant Stibel platform is unique in that it combines the creative vision of Kobe Bryant, one of the world’s most well-known and respected sports icons, with Jeff Stibel, a proven marketdriven operator and threetime entrepreneur, alongside a team of proven public and private company executives.

2017

CHRIS DAVIS Co-founder & CEO, Loot Crate

INNOVATION & TECHNOLOGY

PETER DIAMANDIS Founder & Executive Chairman, XPRIZE Foundation

Futurist Peter Diamandis “strikeforce” project allows up and coming entrepreneurs to shadow Peter whilst working within his organisations to help innovate and develop new multi-million-dollar Silicon Valley projects of their own.

SKY DAYTON Founder, Earthlink & Founder, Boingo

VISIONARIES FRANK ADDANTE Chairman & Founder, Rubicon Project EILEEN BARTHOLOMEW Principal, Bessemer Alliance BRANDON BECK Co-founder & Co-CEO, Riot Games VIC BELONOGOFF Former CEO, Render Media ADAM BERNHARD Founder, Hautelook MICHAEL BLEND Co-founder & President, System1 AARON BRODER Co-founder & CEO, Evolve Media BRENT BUSHNELL, CEO AND ERIC GRADMAN, CTO Two Bit Circus

Two Bit Circus has managed to acquire $21.5M in their two funding rounds, $15M coming in their series B round. They’ve also taken their “world’s first Micro­Amusement Park” and managed to squeeze even more interactive fun into its 37,000 square feet, as the eclec­ tic downtown Los An­ geles location­based enter tainment center hasrecently announced new shows and experi­ ences while also reviving some audience favorites.

SEAN CAFFEY Chairman, Replenish, Inc. CHUCK DAVIS Chairman & CEO, Prodege LLC WALTER DELPH Partner, BCG Digital Ventures JESSE DRAPER Founder, Halogen Ventures MICHAEL DUBIN Founder & CEO, Dollar Shave Club

CSQ Q1 2019

Since selling his busi­ ness “Dollar shave Club” to Uniliever for $1B in 2016, Michael has remained as CEO and prior the company had obtained $163.5M in 7 funding rounds.

DR. CHARLES ELACHI Director, JPL GIL ELBAZ Founder & CEO, Factual BRIAN FITZGERALD Co-founder & President, Evolve Media NAJEEB GHAURI Chairman & CEO, Netsol Technologies BILL GROSS Founder & CEO, Idealab

His roster of over 125 companies has more than half achiev­ ing $1M plus in reve­ nue and 10+ have sold for $100M or more.

funds, and has served on boards of private and public companies such as Web.com.

JOHN KEIB Former EVP & COO, Time Warner Cable MARC MERRILL Co-founder & Co-CEO, Riot Games GARY MICHELSON Entrepreneur & Inventor ADAM MILLER Co-founder, President, & CEO, Cornerstone OnDemand JASON NAZAR Founder & CEO, Comparably SCOTT PAINTER Founder, Fair.com KELLY PERDEW Co-founder & Managing General Partner, Moonshots Capital

Innovation - Alumni EVA HO Founding Partner, Fika Ventures

CHRIS HOLLOD Founder & Managing Partner, Hollod Holdings MARK HUMAYUN USC Roski Eye Institute MIKE JONES CEO, Science, Inc.

The former Myspace CEO has enjoyed great success with his new crypto­fund­based incubator. It recently closed a new venture capital fund of $75M. ALEX KAZERANI Co-founder & CEO, OpenPath Security Inc

OpenPath Security Inc has obtained $27M in funding in two rounds. In addition to his leadership position with Verizon, Alex is an active investor in several venture capital

T.K. PILLAN Partner, Powerplant Ventures MARK RAMPOLLA Partner, Powerplant Ventures CARTER REUM AND COURTNEY REUM Co-founders, M13 Company

The Reum brothers have been recognized as two of Goldman Sachs’ “Builders + Innovators Top 100 Most Intriguing Entrepreneurs” for four years in a row.

They were also early investors in Lyft, which recently went public, and ICON Aircraft. Their firm has also invested in over 100 other start­ ups such as Pinterest, ClassPass, and Slack.

ROBIN RICHARDS Chairman & CEO, CareerArc

In January, Ca­ reerArc Raised $30 Million in a Growth Equity Round to Fund Product Expansion, Sales & Marketing.

CareerArc is a global leader in HR technology as the only company offering both social recruiting and virtual outplace­ ment solutions to the multi­billion dollar HR software market.

JAMES SEGIL Co-founder & President, OpenPath Security Systems Inc.

Along with his Co­founder and CSQ visionary almuni Alex Kazerani, Segil has recenttly raised $20M in its series B funding round for OpenPath DANA SETTLE Co-founder & Partner, Greycroft Partners IAN SIEGEL Co-founder & CEO, ZipRecruiter MARK SUSTER Partner, Upfront Ventures YU-CHONG TAI Professor, CalTech HARRISON TANG Co-founder & CEO, Spokeo CHUCK URSINI Co-founder & CEO, System1 DAVID WAXMAN Founding Partner, TenOneTen Ventures LYNDA WEINMAN Founder, lynda.com DANIEL YOMTOBIAN Founder & CEO, advertise.com JONATHAN ZWEIG Co-founder & CEO, AppOnBoard, Inc.

OF NOTE

Briefings, Updates & Analysis

AEROVIRONMENT CONTRIBUTES TO MARS HELICOPTER If all goes according to plan, Simi Valley aircraft developer AeroVironment Inc. will have had a hand in developing the first helicopter to land—and eventually fly—on Mars. The hovering payload will be attached to the belly of the Mars 2020 rover, scheduled to land on the Red Planet in February 2021. While the aircraft was developed as a test vessel, results will inform the future approach of aerial reconnaissance in areas that are inaccessible to

Innovation - Of Note

SOUTHERN CALIFORNIA SPACE JAM

As if SpaceX, Virgin Orbit, Rocket Lab, Relativity Space, and others hadn’t done enough to establish Southern California as a hub for a new era of space exploration, along comes Techstars Starburst Space Accelerator. A partnership between L.A. startups Techstars and Starburst Aerospace, the entity provides

yet another avenue of entr y for stratosphere-bound entrepreneurs. The new aerospace program will be managed by M at t Kozlov, who previously spearheaded a health-focused accelerator between Techstars and Cedars-Sinai. In comments during the announcement, Kozlov indicated that bringing together vital industry leaders via the endeavor will quicken the pace of innovation and ease

1

logistical hurdles to getting new technologies to market. “We will help founders achieve two years of commercial traction in three months,” he pre dicte d in an early 2019 interview with TechCrunch. The program begins in July, with a Demo Day scheduled for October 10, 2019.

land-bound rovers. The Martian atmosphere, 100 times thinner than that of Earth’s, presents aerodynamic challenges be cause of the massive amount of energy required to achieve lift.

AeroVironment designed and developed the vehicle’s airframe and major subsystems, including rotor, rotor blades, hub, and control mechanism hardware.

The Southern California company previously developed the FQM-151 Pointer, one of the first drones to be deployed in combat. avinc.com 2

38

INNOVATION & TECHNOLOGY

ENTER THE DRAGON 2 Continuing to cement its place on the galactic stage, SpaceX took another bold step with the launch of Dragon 2, a reusable “astronaut taxi” that deployed for the International Space Station on March 2, 2019. The vessel, christened “Crew Dragon,” was carrying supplies and no live occupants. After the launch, SpaceX CEO Elon Musk tweeted that the Dragon 2 was a “major improvement” over Dragon 1, aka “Cargo Dragon.” The new model is designed to carry up to seven astronauts. spacex.com

3

TOP TECH CITY? MOVE OVER, FRISCO The Big Apple, tops in tech?

Somewhere, Steve Jobs is raising an eyebrow. According to Savills Tech City, which reports annually on such matters, that

is indeed the trend. New York City now tops San Francisco as the No. 1 technology hub in the world. Savills, a global real estate brokerage firm, bases its results on factors such as costs of living and doing business, real estate prices, talent, and trans-

port. Cited among the reasons for New York’s ascent were its deep talent pool and recent big tech expansions. Rounding out the top-five finishers were San Fran ci s c o, Lo n d o n, Am s te rdam, and Boston. Los Angeles finished seventh.

Innovation - Of Note CHOPPING THROUGH GRIDLOCK

1. Techstars Starburst Space Accelerator staff 2. Redering of the Aerovironment helicopter to land on, and fly around Mars 3. In the recent Savills report, New York tops San Francisco as the No. 1 technology city in the world 4. The SpaceX Dragon 2, “Astronaut Taxi”

C o nve nti o n a l fo u r- w h e e l e d travel is becoming increasingly incompatible with productivity as traffic remains the bane of professional humanity’s existence. But where Uber and Lyft heretofore have dared not tread, New York air taxi service Blade is soaring above by carving its niche in the air transport sector. In barely five years, the startup has expanded its platform to both coastal U.S. urban markets, specializing in shuttle services to tony destinations an d high - p rof il e eve nt s like Coachella as well as offering point A to point B expediency to the busy executive. A recent $38M Series B funding round placed the company’s value at $140M. The sky’s the limit, even when it comes to your commute. flyblade.com 4

CSQ Q1 2019

39

A new paradigm for venture­capital investments—good idea, good execution, good money—could be more rewarding for all players

By Michael Loeb

Innovation - OpEd NY

OP-ED

Primed for Success

40

INNOVATION & TECHNOLOGY

Consider an alternate universe where the failure rate is 4 out of 5. So, 80% of the time you turn on the lights or TV, or walk into an elevator ... nothing.

Doctors would optimistically give you a 20% chance of survival, accountants would most likely have you pay someone else’s taxes, your phone would misconnect the vast majority of time, and only a fraction of the news would be reliable.

Crazy, right? So why is this acceptable for venture capital? VCs proudly admit to a success rate of 1 in 5. From my vantage point, this causes huge problems of a fundamental sort. Foremost is the cost of capital. Rare winners carry the mighty burden of many losers plus VC overhead (Harvard educations don’t come cheap) plus VC profits (neither does detached housing in Menlo Park). All this gets baked into the cost of a deal with sneaky terms. (Spoiler alert: They slay with terms.)

Another is the megahit-driven mentality. Like a homerun hitter who insistently swings for the fences, it is the four-baggers who maintain the venture adventure. Notably, even the most renowned names

WE’VE SEEN MORE THAN ONCE THAT SLOW AND STEADY WINS THE RACE, WHICH IS WHY OUR INVESTMENTS ARE USUALLY LIFETIME PARTNERSHIPS

in the business have a ghastly batting average but a respectable ROI because of a dash of Uber or a whiff of AirBnB—neither of which, it serves to remind, have yet to make any profit but bountiful marked-to-market gains for VCs and, with luck, genuine financial gains for early investors.

What’s wrong with all this, you ask? Plenty, I’d argue. Whatever happened to the low-risk, reliably returning startup that only had the potential for a (measly) nine-figure valuation? Plus, the rush to the entrance to buy into the big one also accounts for the bloated valuations: so much money, so little equity to spread around. Look at Uber: Pundits say the juggernaut will soon go public with a value of $120B, about the market cap of Mercedes, Ford, and GM combined. The difference: The auto companies produce more than half a trillion in revenue and tens of millions in profits. By contrast, Uber may record $10B from rides and lose more than $4B. Something doesn’t add up.

Which leads me to the model we’ve created at Loeb.nyc, an approach we’ve applied to launching and scaling our 20-something startups. We started with the VC conundrum: With all the talent and access, why do as few as 1 in 10 VC-funded startups have the type of return you’d write home to your accountant about? We parsed the missing 90% into three buckets—bad idea, bad execution, bad money—and came up with a solution for each.

First, bad idea. Do we have better judgment than VCs? I demur. But instead of debating the point, an object lesson on fund construction. Venture money committed by investors is drawn down as it is put to work in startups. Until a deal takes shape, the capital sits on the sidelines in an asset class that is sure, liquid, and thus low returning, in short, the other end of the asset spectrum from illiquid and risky venture. Professional money managers obsess about asset allocation and a slow-moving VC gets them wiggy. Thus the pressure for deals—even bad ones.

At Loeb, we work for our own account, on our own schedule, with our own capital. We decide our fate and choose winners without the outside pressure of quota-hitting.

To guard against bad execution, that second bucket, we mitigate the executional risk with our shared services group, equal in number to the denizens of the companies themselves. Metaphorically, they are the shed of tools that all builders need: research, strategy, legal, sales, finance, accounting, M&A, patents and trademarks, tech (lots of tech), UIUX, and every DtC marketing channel from new school (digital: SEM, SEO, social, programmatic, email, messaging, etc.) to old school (direct mail, inserts, field force, phone, TV, and more). Bereft of the typical withering startup odds but with a heavy dose of the startup vibe and culture, we get great, super-qualified people who comprise the shared services departments. Plus, the startups contribute a vig to the “house,” incentivizing our team with a bit more skin in the game. And the price is right—shared services cost our startups nothing. In our experience, keeping track of vendors with timesheets is not a good use of time and often the source of friction. On the other side of the coin, entrepreneurs should be spending their time thinking big picture, and leave

the marketing, ops, and tech to the experts. When we all are working on the same team with a common purpose, the result is pure magic.

About that last bucket, capital: Ours is convenient, patient, and private. In a normal course, entrepreneurs confess that they spend half their time raising money or keeping the money they just raised happy. We give them that half back by being their only (or at the very least go-to) source of capital. Instead of funding companies for only a few months (incubators), or a round or two (VCs), we fund for years and years. And because the money is our own without the additive input of LPs, we allocate the capital when and how we see fit. We’ve seen more than once that slow and steady wins the race, which is why our investments are usually lifetime partnerships.

As entrepreneurs and operators, we know firsthand that no two startups are alike. Liftoffs are not smooth and sh*t happens. Every time. No one forecasts meltdown in their budgets, but near-death experiences have occurred in every startup I have ever launched or been involved with. VCs don’t weather the turbulence well since few have been in that position (if you haven’t experienced this yourself, you simply can’t know). When these events happen, capital dries up, particularly if the event is coincident with a recession (and one has to be coming soon).

Consider this calculus: By cutting the risk of each of the buckets in half, the odds of success increase 5.5 fold, to more than 50%. Is the performance proving out the theory? We’ll know in the fullness of time, but we are pleased as punch with our progress thus far. And that is important too. END

Innovation - OpEd NY

MICHAEL LOEB Founder & CEO Loeb.nyc Michael Loeb is a serial entrepreneur with bold exits with companies like Synapse Group and Priceline. com. He is the founder and CEO of Loeb.nyc — a company factory and venture collective with a deep infrastructure in marketing, operations and tech development.

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INNOVATIVE OFFICE Los Angeles

HAWKE MEDIA Industry Marketing Location Los Angeles Scope 26,000 sq. ft.

Architect Boto Design Architects Floors 1 Notable Features • 10 “phone booths” allow employees to have privacy for calls • “Neighborhood” concept of organization, where teams are clustered and each manager faces their team • Elevated central platform that serves as a stage for performances and announcements • Two break rooms and a private outdoor patio for downtime

At first, digital marketing company Hawke Media wanted an open/creative office space, but after careful consideration, realized a more flexible layout would allow for creative flow, as well as private meetings and phone calls. The solution was to create clusters of open space and a handful of executive offices around the perimeter and at the core. While each employee has their own desk, a slew of other spaces are available, from a bean bag lounge chair to outside on the private patio.

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1. The elevated redwood platform is used for performances and announcements

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2. Meeting rooms have optional sliding doors for privacy 3. Groupings of sofas and casual chairs provide an array of spaces to work and meet in the open office 4. The “neighborhood” concept features clusters of teams, with one manager looking out over their team members 5. The redwood ramp leads to the bean bag lounge area 6. An open kitchen flows into the dining area and break room, where a ping-pong table and variety of games encourage creativity 7. The 26,000-square-foot space was kept industrial in feel, with polished concrete floors and an open ceiling 8. Frosted glass partitions provide privacy for working or meeting

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Photo Credit: Los Angeles—Nik Blaskovich, New York—Claire Esparros for Homepolish

Innovation - Office LA

The Manhattan offices for ClassPass, in the Flatiron District, reflect the fastpaced energy of a tech start-up as well as the Zen balance of a health club— appropriate for the game-changing app that allows users to book fitness classes at a range of studios for a single membership fee. ClassPass embraced the design services of Homepolish, a like-minded brand that charges for interior design services à la carte so that each client can choose the level of service they need. Here, Homepolish gave a complete outfitting of the 30,000-square-foot space, which started as essentially an empty box.

INNOVATIVE OFFICE New York

CLASSPASS Industry Tech/Fitness Location New York Scope 30,000 sq. ft.

Floors 1 Interior Designer Shelly LynchSparks for Homepolish Notable Features • A multitude of seating options mix up the workspace, including lounge chairs, rocking chairs, and traditional office spaces • Long tables In the conference rooms double as ping-pong tables for fun break times • The kitchen boasts brightly colored tables and chairs, as well as personal lockers for employees

1. The dining area offers long tables for communal dining as well as employee lockers

Innovation - Office NY

2. Healthy options make snacking easy in the kitchen, which feels warm and residential

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3. Conference tables double as ping-pong tables 4. Executive offices are always bright and cheerful, with framed quotes for inspiration and motivation 5. An open floor plan features a range of seating options 6. The company’s logo above the reception desk is made from shoelaces

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[ 2019 ]

40 UNDER 40

MOST INNOVATIVE NEXTGEN FOUNDERS & CEOS CSQ presents its first annual “40 under 40” of the most innovative NextGen founders and CEOs in Los Angeles and New York. An even split between the cities, this list of talent is disrupting industries that range from health care and hospitality to gaming and the music industry. Young, driven, and full of momentum, these leaders were selected through a process that began with a call for nominations.

Then, using a system that graded innovations within industry, current market connectivity, future business potential, and previous entrepreneurial wins, a selection committee of visionary entrepreneurs and experts helped make the final selections.

CHRIS ACHAR

ADAM ALPERT FOUNDER & CEO, DISRUPTOR RECORDS, SELECTOR SONGS Industry Entertainment Location NY Business Mission Streamline label capabilities with a uniform strategic goal of longterm artist development, and use forward-thinking, progressive marketing methods revolving around genuine, non-commercialized promotion, and direct artist-fan communication relationships to build artist careers. Recently, Alpert developed the nontraditional “building album”; a strategy that collects a series of singles and rolls them into an EP or album. This innovative approach results in every track on the album getting playlisted on DSPs and helped The Chainsmokers score their third No 1 Dance/Electronic album “Sick Boy” Notable Achievements Sold over 30 million singles worldwide

Innovation - Founders

SUPPORTERS

FOUNDER & CEO, GENZUM Industry Biotech Location L.A. Funds Raised $20M Business Mission Develop niche pharmaceutical products for partners and consumers around the world and making healthcare medicines more affordable and accessible to patients Notable Achievements Los Angeles Business Journal 20 in their 20’s; Life Science Leader Executive 2015; New Pharma Magazine Emerging Leader; CSQ NextGen 10; Inc 500

SCOOTER BRAUN FOUNDER, SB PROJECTS Industry Entertainment Location LA

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Business Mission A diversified entertainment and media company with ventures that integrate a variety of businesses, including music, film, television, technology and philanthropy, creating an environment where failures and fear are nothing but rest stops on their path to success.

Notable Achievements As Braun continues to expand SB Projects, he remains committed to the company’s founding philosophy of giving back and serves as Chair to the Advisory Board of Pencils of Promise, a non-profit organization that has helped to build over 200 schools in developing countries.

MICHAEL & DANIEL BROUKHIM

GEOFFREY CHAIKEN

WALTER DRIVER

CO-FOUNDER & CEO BLINK HEALTH

CO-FOUNDER & CEO SCOPELY

Industry Healthcare Location NY Funds Raised $165M Business Mission Making prescription medications available at lower prices to millions of people across the United States.

Notable Achievements Geoffrey was previously at Brave Warrior Advisors, where he was one of three investors managing $3B. At Brave Warrior, Geoffrey led the firm’s successful investment throughout the technology and pharmaceutical supply chains

Industry Mobile Entertainment Location LA Funds Raised $258.7M Business Mission Scopely games provide immersive experiences for millions of casual and core gamers around the globe. Founded in 2011, the company is home to a proprietary technology platform that creates personalized user experiences and effectively monetizes free-to-play games at scale Notable Achievements #2 fastest growing company in America in 2015 according to Deloitte’s Fast 500 List

CO-FOUNDERS & CO-CEOS FABFITFUN

JENNIFER FITZGERALD

FOUNDER & CEO POLICYGENIUS Industry InsurTech Location NY Funds Raised $52M Business Mission Helps people discover and receive the financial protection they need and have them feel good about it

WADE EYERLY 40 Innovation VANESSA DEW, - Nextgen

Industry Health & Wellness Location LA Est Revenue $200M+ Funds Raised $83.5M Business Mission Offers subscription services that allow its members to discover brands and products.

The brand aims to motivate, inspire, and excite readers with a slew of great, healthy resources for every kind of woman—from the new college student to the new mom Notable Achievements Daniel was born and raised in Los Angeles and received a BA from Berkeley and JD from UCLA. At Berkeley, he founded a chapter of Sigma Phi Epsilon and created and taught a course on Larry David’s Curb Your Enthusiasm.

At Harvard, Michael served as the Editorial Chair for the Crimson and earned a National Pacemaker Award for his writing

CSQ Q1 2019

DAINA TROUT, JUSTIN TROUT

CO-FOUNDERS HEALTH-ADE KOMBUCHA Industry Health Location LA Funds Raised $29M Business Mission Utilizing new brewery, along with primary and secondary fermentation processes to transform sweet tea into Kombucha while significantly reducing the sugar content of the drinks Notable Achievements USC Marshall Mentor; USC Marshall Guest Lecturer; Advisory Boards for CPG startups; CSQ’s Next Gen 10 (Justin Trout)

FOUNDER & CEO, EIC

Industry Insurance Location NY Business Mission Create a new insurance product that guarantees University students make more income after graduation, fostering more applicants, greater retention, and more happy graduates. It’s our hope that through our work at EIC, we can help pave a path for many students across the country to pursue their own American Dreams Notable Achievements He speaks on topics from developing a positive company culture and non-traditional hiring practices to “Why you should start an airline, or a Ferrari Racing Team.”

JUSTIN FUISZ

CO-FOUNDER & CEO, OCTI Industry Technology Location LA Funds Raised $7.5M

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Business Mission Build the world’s first system for human understanding in augmented reality for smartphones by creating new patented technologies with a worldclass team.

Notable Achievements NFLPA Startup of the year winner 2018; Apple App Store Best New Apps Goals for ‘19 Create the definitive consumer platform for AR in 2019

STEVE GATENA FOUNDER & CEO, PRAY.COM Industry Technology Location LA Funds Raised $16M Business Mission To resolve societal challenges by making tools for people to live better lives and combining our talents to achieve something bigger than ourselves. Operating on a mindset of gratitude and curiosity, there’s always something to be known Goals for ‘19 Leave a legacy of helping others by continuing to grow the reach and social impact of Pray.com Notable Achievements Helped people in more than 183 countries share over 35 million prayers

BRYAN GOLDBERG FOUNDER & CEO BUSTLE DIGITAL GROUP Industry Media and Entertainment Location NY Est Revenue $46.3M Funds Raised $50.5M Business Mission Bustle delivers everything a person wants to know, read, and see at the very moment by engaging readers’ interests to explore and discover every topic one’s

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searching for, including politics, entertainment, fashion, charity, food & beverage, etc.

Notable Achievements Crain’s New York, Fast 50 ‘18

WILL GUIDARA FOUNDER, MAKE IT NICE Industry Professional Service Location NY Business Mission Emphasizing on support for employees and encouraging their growth and development Goals for ‘19 Establishing a better work + life balance foreveryone on the team; as we continue to grow, to not stop embodying the things that give us the opportunities to grow; growth often results in a watering down of the brand, but everytime we open a new restaurant we want it to make our current restaurants better Notable Achievements WSJ Magazine: 2016 Innovators Awards/Food Innovators Daniel Humm and Will Guidara.

For Eleven Madison Park: The World’s 50 Best Restaurants; #1 Restaurant in the World 2017; Michelin Guide, three stars; The New York Times, four stars; Wine Spectator: Grand Award. 7 James Beard Awards, including outstanding chef, outstanding service, and outstanding pastry chef

mobilities of places that’s gradually transforming into smarter cities Goals for ‘19 Establish Firefly in new cities including New York, Miami, and more; be recognized as an innovator in the smart city and advertising sector; grow Firefly as a company as powerful force for good Notable Achievements Graduate of Brown and Stanford GSB; Fellow at Sequoia Capital and Fellow at Lightspeed Venture Partners

PATRICK HORSMAN MANAGING PARTNER AND CO-FOUNDER BLUE SAND SECURITIES Industry Investment Location NY Est Revenue $21M Business Mission We’re matchmakers in the marketing world, bringing together superior investment talent and investors seeking to allocate to unique strategies.Our targeted approach cuts through the noise in the alternative space, and enables us to meet the high standards of the best and brightest institutional investors.

Notable Achievements Raised over $15 billion from institutional investors for its Alternative Investment fund clients

FOUNDER & CEO HAWKE MEDIA Industry Media Location LA Est Revenue $20M Business Mission Customize data-driven, performancefocused solutions to help launch, scale, and invigorate businesses of all sizes, industries, and revenue models

RYAN HUDSON CO-FOUNDER & PRESIDENT, HONEY Industry Retail Location LA Funds Raised $40.8M Business Mission If there’s a better price, we’ll find it.

Honey finds you the Internet’s best discount codes.

Innovation - Nextgen 40 PAYAL KADAKIA

KAAN GUNAY FOUNDER, FIREFLY Location NY Industry Media Funds Raised $21.5M Business Mission To connect everyone, people, businesses, and government to create a more sustainable, safer, and smarter cities by leveraging advertising into shaping the

ERIK HUBERMAN

FOUNDER & EXECUTIVE CHAIRMAN, CLASSPASS Industry Health & Fitness Location NY Est Revenue $150M+ Funds Raised $239M Business Mission a subscription marketplace that lets its users to browse and book fitness classes within a network of more than 8,500 partners in about 50 cities across the world, providing the fullest fitness experience including yoga, cycling, Pilates, barre, running, strength training, dance, sports, videos and more

REBECCA KANTAR

Location NY Est Revenue $100M Funds Raised $30M Business Mission Create products that are both beautiful and eco-friendly, that infuse innovation with inspiration, and that continue to give back to communities in need Notable Achievements Seven years in, we were the fastest growing woman-owned company in the country

ARIEL KAYE FOUNDER & CEO PARACHUTE

FOUNDER, IMBELLUS Industry Software (Human Computer Interaction) Location NY Funds Raised $22.5M Business Mission We build simulation based assessments to evaluate how people think, not just what they know Notable Achievements Prior to launching Imbellus, Rebecca founded an expert network connecting entrepreneurs to Fortune 500 companies.

That business was acquihired by GLG in 2012, where Rebecca was an Entrepreneur In Residence

Industry E-Commerce (Interior Design) Location LA Est Revenue $30M Funds Raised $40.8M Business Mission To not only offer the best sheets on the market, but to also inspire a community around sleep, wellness, and creating a comfortable home. Years ago while traveling in Italy, I checked into a picturesque hotel on the Amalfi Coast and discovered the softest, most comfortable bedding. When shopping for sheets later on, I found myself surrounded by stacks of products that all looked the same. I wanted something like those beautiful linens I’d experienced in Europe, but I didn’t want to spend a fortune or settle for something treated with chemicals

CO-FOUNDER AND CEO SNACKNATION Industry Food Location LA Funds Raised $12M Business Mission To find exciting, health conscious snack brands and connect them around the snack bowl with like-minded people.

People craving a better alternative, a fuel that matches their fire and products with purpose.SnackNation isn’t just a tech-enable snack delivery service reaching more than half a million consumers. It’s a data and insights powerhouse Goals for ‘19 Customer obsession; create in-office data- collection & engagement application; launch our predictive analytics engine Notable Achievements Inc. 5000 List (#24 overall, #2 in food category); LABJ #3 fastest growing companies in Los Angeles; curation partner for WeWork’s WeMRKT retail spaces

dreamers. The special thing that Wonder is building is a communith where they know the users will be the ones to help them improve and get better over time . They appreciate being different from the rest, but also help set the course for innovation.

Goals for ‘19 Launch; inspire other entrepreneurs to dream big and help them achieve their goals; make my son smile every day

JOSHUA KUSHNER CO-FOUNDER & MANAGING DIRECTOR THRIVE CAPITAL Industry Venture Capital Location NY Funds Raised $2.3B Business Mission Thrive Capital is a venture capital investment firm focused on internet and software investments Notable Achievements Co-founded Oscar Health with fellow CSQ 40 under 40 Mario Scholler, Forbes’ 30 under 30, Inc Magazine’s 35 under 35, Crain’s 40 under 40

Innovation - Nextgen 40

SARAH KAUSS

ANDY KLEINMAN

AARON LEVANT CO-FOUNDER & CEO, NTWRK

SEAN KELLY FOUNDER & CEO, WONDER

FOUNDER AND CEO, S’WELL Industry Manufacturing

CSQ Q1 2019

Location LA Industry Entertainment Funds Raised $14M Business Mission To build a company for gamers and

Industry Retail Location LA Est Revenue Pre-Revenue Business Mission NTWRK brings the biggest brands and cultural icons together for exclusive shows only available on the NTWRK app and website Goals for ‘19 Hire the best people Notable Achievements Idon’t have too many and I’m not so concerned about getting them

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SHAN-LYN MA FOUNDER & CEO, ZOLA Industry E-Commerce Location NY Est Revenue $120M Funds Raised $140M Business Mission The wedding company that will do anything for love. We’re reinventing the wedding planning and registry experience to make the happiest moment in our couples’ lives even happier. From engagement to wedding and decorating your first home, Zola combines compassionate customer service with modern tools and technology

Business Mission Providing business advice, inspiration, and knowledge for both first-time entrepreneurs or seasoned startup vetera, and change the business education landscape around the world and build world-changing businesses to inspire others to do the same Goals for ‘19 Launch and grow Unfiltered 3.0 (new platform); execute our growth strategy in the US and Asia markets; grow the Unfiltered team in New Zealand and United States Notable Achievements Forbes’ 30 Under 30 2019

ARI MIR

ARA MADESSIAN CO-FOUNDER & CEO, SERVICETITAN Industry Technology Location LA Funds Raised $326M Business Mission Service management software that helps the leading home services businesses generate more leads, book more appointments, and close more sales. Real-time bookings integrate with partners like Yelp to allow consumers to seamlessly and digitally book an appointment with home ser vices providers.

We’re integrating the supply chain with suppliers like Lennox to allow our customers the ability to automatically order necessary parts and equipment

JAKE MILLAR CO-FOUNDER & CEO UNFILTERED.TV Industry Media Production Location NY

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human capital in the customer experience so we can continue providing more value at lower prices to customers Notable Achievements I’m tremendously proud of some of the milestones Clutter has achieved so far, but, frankly, when I read a Yelp review that says Clutter “was a lifesaver” or “I don’t know what I would have done without Clutter,” that’s when I feel most proud of what we’ve built. Prior to Clutter, I was Co-Founder and President of another LA-based start-up, GumGum, which is now the world’s largest in-image advertising network, generating over $100 million a year in revenue

COURTNEY REUM & CARTER REUM CO-FOUNDERS & PARTNERS, M13

CO-FOUNDER & CEO HELLO ALFRED Industry Professional Services Location NY Est Revenue Funds Raised $52.5M Business Mission Hello Alfred is on a mission to change the way that people live in cities, recognizing the potential behind the intersections of individuals, cultures, and ideas and employing that into making a more sustainable and conscientious future

MARIO SCHLOSSER FOUNDER & CEO OSCAR HEALTH Location NY Industry InsurTech Est Revenue $1B Funds Raised $1.3B Business Mission Oscar Health missions itself to establish a health insurance company centered around the patient; it engages its members and directs them to the care that’s right and necessary, putting individuals and businesses in charge of their own health care

Innovation - Nextgen 40

CO-FOUNDER, CLUTTER Industry Real Estate Tech Location LA Est Revenue $3M Funds Raised $296M Business Mission To make people’s lives easier and more convenient but picking up their storage boxes, storing them, then delivering when ready Goals for ‘19 Continue growing our business faster and faster so that we can positively impact more and more customers; continue adding highly talented teammates who are passionate about customer experience; continue reinvesting our financial and

Industry Venture Capital Location LA Business Mission M13 enables rapid creation of advantages through a scalable approach, utilizing top of the class resources and partnerships in product, brand, acquisition, and operation to enable better and faster business decision making that will compound and benefit over time

MARCELA SAPONE

KATERINA SCHNEIDER FOUNDER & CEO, RITUAL Industry Health Location LA Funds Raised $40.5M Business Mission Better health care starts with better ingredients. With Ritual, customers will know where everything is coming from and why it is there, transforming thebusiness with thorough traceability

SHIVANI SIROYA

Industry Social Media Location LA Est Revenue $1.2B Funds Raised $4.9B Business Mission a camera company that reinvents the camera in the way to improve the communications and lives of people. It empowers the expressions of people at the various moments and contributes to the human interactions so they can learn more and havefun together Notable Achievements Forbes 30 Under 30 2017

OPHIR TANZ

FOUNDER & CEO, TALA Location LA Industry Finance Est Revenue $75M Funds Raised $109M Business Mission To build the future of finance by expanding financial access, choice, and control for 3 billion underserved globally

FOUNDER & CEO GUMGUM

RYAN URBAN

RAMI ZEIDAN

CO-FOUNDER & CEO BOUNCEX Industry Enterprise Software Location NY Funds Raised $75M Business Mission Help businesses identify and understand the visitors to their site through improved device identifications. In the area where the traditional technology fails, BounceX helps to form real connections with known visitors

EMILY WEISS

Location LA Industry Technology Est Revenue $100M Funds Raised $37M Business Mission GumGum uses artificial intelligence to focus on solving problems across the industries, from advertising to professional sports, by teaching machines to better understand the world and instructions

FOUNDER & CEO LIFE HOUSE HOTELS Industry Hospitality Location NY Funds Raised $40M Business Mission Collaborating with local influences to deliver an environment for customers with authentic expressions, Life House Hotels create projects that respond to each locale to bring authenticity and connection to each other Goals for ‘19 Open 10 Life House—branded hotels in the US; scale our whitelabel management product to 25non-Life House branded hotels; take our Life House creative and design, development, and tech takeover process down to 4 months and our white-label management takeover down to 2 weeks

Innovation - Nextgen 40

TRINA SPEAR & HEATHER HASSON CO-CEOS & CO-FOUNDERS, FIGS Industry Medical Apparel Location LA Est Revenue $100M+ Funds Raised $72M Business Mission Using the best fabric and threads, FIGS transforms the healthcare experience by creating the most innovatie, comfortable, and extremely functional medical apparels for the medical professionals and personales today

EVAN SPIEGEL

DAVID TISCH CO-FOUNDER & MANAGING DIRECTOR, BOXGROUP Industry Venture Capital Location NY Business Mission Invest in the earliest stage, support the companies based on team conviction because they believe in “founder market fit” concept that will lead not only to the equal opportunity but also generate a catalyst for the positive change and energy throughout the entire entrepreneur trajectory

FOUNDER & CEO, GLOSSIER Industry Beauty / Consumer Goods Location NY Est Revenue $100M+ Funds Raised $186M Business Mission Making products that are inspired by the consumers themselves.

Customers will find all kinds of beauty products, including skincare, makeup, bodycare, and fragrances optimized for real life by using efficacious formulas, thoughtful designs, and enabling conversations

FOUNDER & CEO SNAP INC.

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INNOVATIVE NEXTGEN FOUNDERS & CEOS LOS ANGELES MICHAEL & DANIEL BROUKHIM FABFITFUN

Outside the Box Fresh off their $80M raise, the Broukhim brothers share how a deep knowledge of their customers turned a lifestyle blog into a unicorn business

By Anasia Obioha

Innovation - Broukhim

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If you’ve spent time on social media, chances are you’ve come across at least one famous face, such as Khloe Kardashian, Tori Spelling, or Lisa Rinna, feverishly unveiling an oversized box labeled “FabFitFun” and exclaiming over the products inside, like a child opening a gift on Christmas morning.

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INNOVATION & TECHNOLOGY

Rosen Kitchens felt that excitement when they received swag bags at the VIP events they attended while running a digital media agency and online lifestyle blog called FabFitFun. Launched in 2010, it focused on health, beauty, fitness, and home products for the contemporary woman.

“We took what we were learning from our readers at the time and the combination

of the swag bag concept and took the business in a new direction,” Daniel says.

In 2012, they launched the FabFitFun box to their 130,000 readers that included more than $200 worth of full-sized products for beauty, fashion, fitness, and wellness. Now, in addition to receiving highly anticipated boxes four times per year, FabFitFun members have access to year-round perks like FabFitFun TV, a

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was another power move for Michael, Daniel and Katie that’s helped boost its success. The city has become a hub for tech startups earning the name ‘silicon beach’. Much like Visionary of the Year Chris DeWolfe, CEO of Jam The Art and Science of Customer City, Daniel cites some of the same LA based successful companies that he admires includSatisfaction To say the expansion has been a success is an ing Tinder (the top dating site in the world) and understatement. Th anks in part to partner- Bird (a dockless scooter-share service). ships with celebrities such as tennis star Venus “L.A. has a really great storytelling DNA Williams and actress Brooke Burke, the boxes and a lot of what we are as a brand and as have sold out every season, and turned a small a company is about storytelling around our business of 25 employees into an international products and our experiences,” Daniel says. company with more than 450 employees glob- “That drives a lot of what we do.” ally. Additionally, Forbes recently reported the company’s more than 1M subscribers are now More than Just a Business generating an estimated $300M in revenue.

Raised by Iranian immigrants who moved to When asked the secret of FabFitFun’s suc- the U.S. in the late 1970s after leaving evecess, Michael says, “We focus relentlessly on rything they owned behind them, Daniel the customer and delivering as much value as and Michael say their parents have been their possible. I think that’s the hallmark of a good inspiration. Their father was an ob-gyn who consumer company.” became an entrepreneur, and their maternal Meeting customer needs is, Michael says, uncles, who owned a fabric company, have “part art, part science.” For FabFitFun that served as mentors over the years. The brothers means developing more than 500 variations of also inherited a spirit of serving others. the boxes per season for their customers, with “My parents and I and Dan are manifeshelp from Kitchens’ merchandising team’s on- tations of the American dream and I want to going surveys and a consumer insight and data give back to make sure that that stays alive science effort. for my children and for future generations,” “When we’re talking to a brand, we actual- Michael says.

Philanthropy has become a part of FabFitly have a good sense of whether or not a certain product is going to work within our ecosystem,” Fun’s DNA. Every season FabFitFun features Michael says. a nonprofit and raises $30,000 to $50,000 Daniel says good old-fashioned smart for that organization. Moreover, all three spending has also helped the company thrive co-founders have made it a point to underin a competitive environment. “We’re not score the importance of uplifting women at cheap, but we’re disciplined about our capital the company. allocation,” Daniel says.

“We’re really proud of being a women-first The trio recently raised $80M in Series A company,” Michael says. “We feel really happy funding from Kleiner Perkins to help take their that we’re part of this movement of women vision to the next level with a 600,000-square- affi rming their place in the business world. foot fulfi llment center in Chino Hills, Calif., We take pride in not only cultivating women new products, an online store with mem- leaders in the company but also to highlight bers-only deals, and more. women founders in the products that are in “We want to be positioned next to Amazon the boxes every season.”

Prime, Netfl ix, Spotify, Costco as one of the Looking ahead, the brothers only see pohandful of indispensable memberships that tential. deliver the most value possible,” Michael says.

“Just like getting on Oprah’s Favorite Th ings list or being featured in a Super Bowl The Los Angeles Effect commercial, we hope that being featured in Positioning FabFitFun in the heart of Los An- FabFitFun is that kind of change moment for geles the entertainment capital of the world, small companies,” Michael says. END streaming video service that offers on-demand workouts, daily lifestyle content, access to the online community, and members-only shopping experiences.

Innovation - Broukhim

1. The FabFitFun founders holding samples of their subscription boxes 2. Daniel Broukhim, Co-founder & Co-CEO 3. Katie Rosen Kitchens, Co-Founder & Editor-in-Chief 4. Michael Broukhim, Co-founder & Co-CEO

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INNOVATIVE NEXTGEN FOUNDER & CEO NEW YORK GEOFFREY CHAIKEN BLINK HEALTH

Prescription Pioneer Geoffrey Chaiken set out to help people easily and affordably access their medications—and is changing an entire industry pill by pill

By Dora Dalton

GEOFFREY CHAIKEN Age 36 Hometown New York City Residence New York City Family Matthew Chaiken, brother and co-founder of Blink Health Education BA in biology and philosophy from Yale University;

MBA from Harvard Business School First Job Internship in a laboratory at Rockefeller University Mentors Tom Tryforos, Grant Street Capital BLINK HEALTH Founded 2014 Number of Employees Over 200

After a doctor’s visit, you take your prescription to your local pharmacy, wait (way too long) for your medication to be ready, and then pay... how much? Your co-pay? More? Less? What if you’re not insured?

Consumers usually know their costs before choosing whether to buy, but not when it comes to pharmaceuticals. Geoffrey Chaiken set out to change that through e-commerce prescription company Blink Health, which he co-founded with his brother, Matthew, in 2015.

In just four years, the company has formed partnerships with more than 35,000 retail pharmacy partners, including Walmart, Costco, most major grocery chains, and thousands of independent pharmacies. “This network represents more retail locations than the nation’s McDonald’s, Starbucks, and KFCs combined,” Chaiken says.

Blink has also recruited executives with decades of leadership experience in pharmaceuticals and e-commerce, and with $175M in backing, its journey is off to a roaring start.

Innovation - Chaiken

Positioned for the Future

Chaiken’s father and grandfather were both physicians, a path that he decided not to take.

“When I told my grandfather that I didn’t intend to become a doctor, he responded with a simple question, ‘How, then, will you help people?’”

Chaiken says. “Blink Health was born out of that question.”

Since he had personal experience with hearing loss and a lingering interest in science and medicine, as a student Chaiken applied for an internship at an ear damage research lab at Rockefeller University in New York, but was rejected. His mother encouraged him not to take no for an answer, and soon he was working with neuroscientist and Nobel winner Paul 52

INNOVATION & TECHNOLOGY

I STRONGLY BELIEVE THAT PRESCRIPTION MEDICATIONS ARE AS VITAL AS FOOD, AIR, AND WATER, AND THAT EVERYONE SHOULD HAVE ACCESS TO THE SAME PRICES. THIS IS WHY BLINK HEALTH PRIORITIZES HUMANS OVER PROFITS

Greengard. It was a lesson in tenacity that has served him well—and an opportunity to gain lifelong mentors and business partners.

He also prepared for his future by earning a biology undergrad degree and an MBA from Harvard Business School. And he got to know the pharmaceutical business from the inside by founding Marinus Pharmaceuticals, which develops novel treatments for epilepsy, and managing a portfolio at Brave Warrior Advisors that included investments in technology and pharmaceutical supply chains.

For its next phase, Blink is planning to expand into low-cost telemedicine, providing health consultations for patients across the country online and by phone. “We believe our e-commerce marketplace model can be used to solve the cost crisis across many areas of healthcare,” Chaiken says.

Innovation - Chaiken Keeping It Simple

Using the Blink Health app, customers can see the price of their medications, order them easily, and either pick them up locally or have them shipped to their homes. The app is free and no membership fees apply. Prices for the drugs are negotiated with pharmaceutical companies directly, cutting out the middlemen that Chaiken says tend to drive up costs.

One of the company’s early successes came in 2016 when Blink formed a partnership with Eli Lilly and Company to offer a 40% discount on insulin. This program reduced insulin costs for a vulnerable patient population: people who pay full retail prices at the pharmacy, such as those who have no insurance or are in the deductible phase of their high-deductible insurance plans. Patients on Medicare can also use Blink.

“I strongly believe that prescription medications are as vital as food, air, and water, and that everyone should have access to the same prices. This is why Blink Health prioritizes humans over profits, helping patients make informed decisions about the drugs they need, with no hidden fees, pricey memberships, or cumbersome coupons.”

CSQ Q1 2019

People First

Among the valuable board members Blink has recruited is Tom Tryforos, investor at Grant Street Capital and adjunct professor at Columbia Business School. “He gave us a simple, but incredibly helpful nugget of wisdom: Spend your time working on the biggest, most valuable challenges,” Chaiken says. It’s a message that echoes Chaiken’s grandfather’s query about how he will help. And Blink is already finding ways to give back.

In 2018, the company partnered with Remote Area Medical (RAM), a nonprofit that provides free dental, vision, and medical services to underserved and uninsured individuals through mobile clinics. At a pop-up clinic in Tennessee, Blink employees volunteered and gave $20 vouchers to RAM patients to go toward medications. It’s a partnership that they plan to continue.

“We believe families shouldn’t struggle to afford the prescriptions they need to keep themselves and their loved ones healthy,” Chaiken says. “We are committed to our patients.” end

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INNOVATIVE NEXTGEN FOUNDERS & CEOS LOS ANGELES STEVE GATENA PRAY.COM

Click, Pray, Love The app Pray.com connects faith communities, developing a social media platform specifically for spiritual connections

By Dora Dalton

Innovation - Gatena 1

Social networking connects people—for catching up with friends, finding dates, and advancing careers. But what if the connection you need is spiritual? Steve Gatena made an app for that.

Along with his wife and three co-founders, Gatena, 32, created Pray.com to connect faith communities. At Pray.com, prayer is the priority and with more than 30 million “prayers shares,” it is quickly becoming the digital destination for faith.

Indeed, the app enables people to share prayers, access faith content, and give to nonprofit religious organizations. As a result of Pray.com, churches and nonprofit organizations of all faiths are reporting that they are connecting with their congregations at record frequency.

An LA native, Gatena has had many successes: Air Force Academy cadet, champion football player at USC, founder of two acclaimed startups (video-marketing agency REP Interactive and stock-footage supplier 54

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VideoFort), and former CEO of aerial surveillance firm Helinet. But when Steve’s former business partner and mentor Alan Purwin died suddenly, Gatena’s life changed direction.

Inspiration struck while he was sitting on a couch at Hub101 powered by Cal Lutheran Center of Entrepreneurship; he registered the Pray.com URL on the spot.

Based in Westlake Village, CA, Steve actually bought the website while working from Westlake Village incubator and California Lutheran University founded HUB101.

The company has grown exponentially since its 2017 launch. Helped by $16M in venture capital investments by firms like Science, Greylock, and TPG, Pray.com has helped thousands of faith communities in more than 183 countries worldwide. And it has not only found success with its customers but also with its team members: Pray was named one of the Best Places to Work by the Los Angeles Business Journal and Happiest Organization by TINYPulse. In addition, Gatena was invited to speak at the

Vatican for Humanity 2.0 in 2018, alongside then President of the United Nations General Assembly Miroslav Lajčák and a consortium of leaders and luminaries from around the world.

As Pray.com continues to evolve, Gatena is enjoying the learning process. “I begin my day by reminding myself that I am a student,” he says. “I operate with a mindset that somewhere, something is waiting to be known.”

This outlook, and the company’s plans for the future, are inspirational. “We are leaving a legacy of helping others. Every day I focus on growing our reach and impact so we can tackle some of society’s biggest problems,” Gatena says. “I am grateful for the opportunity to pursue this vision, and I am grateful for the team of amazing people I get to learn from every day.

It’s a true blessing.” end 1. From left: Ryan Beck (Dir of Engineering), Matt Potter (Dir of Business Development), Steve Gatena (CEO), and Mike Lynn (COO)

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INNOVATIVE NEXTGEN FOUNDERS & CEOS LOS ANGELES

Scrubs Superstars

HEATHER HASSON TRINA SPEAR FIGS

In a different kind of medical miracle, two entrepreneurs are making stylish scrubs profitable

True disruption happens when a startup finds an untapped need and skillfully fills it. Such is the case with FIGS, a company making health professionals feel both comfortable and fashionable with its high-performance scrubs.

No scratchy fabrics, unisex styles, or Tweety Birds here—FIGS uses athletic fabrics that are stain repellant and antimicrobial, with wellthought-out features and fashion-forward cuts and colors.

FIGS traces its origins to an afternoon coffee Hasson had with a nurse practitioner friend. Hasson observed that her friend’s uniform was made of unflattering and uncomfortable fabric and its size label was on the outside for all to see—but learned that this was essentially the best there was for the mandatory medical uniforms, which are churned out by multibillion-dollar corporations.

Hasson followed that with a visit to a bleak medical supply store in a strip mall, and knew she could do better. She made a custom pair of scrubs for her friend and was soon getting inquiries about making more. It was an aha moment followed quickly by a business plan.

“Both the product and the shopping experience were subpar,” she says. “Trina and I got together and decided to transform this industry.”

Spear says she and Hasson, co-founders and co-CEOs, are the yin and yang of the enterprise. Spear has the business savvy, with a background in banking and investments; Has son’s training is in fashion. Together, they’ve created a new model for an old industry, and doctors and nurses get to wear clothes they like and share their feedback.

“FIGS was the first company to sell online directly to the medical professional,” Hasson says. “Our goal was to really connect with this community and give them something they’d never experienced before.”

Since its 2012 launch, FIGS has garnered $75M in backing, one of the largest figures ever raised for a female-led startup.

Their vision is much more than commercial. FIGS offers students, active military members, and first responders a 15% discount.

And through its Threads for Threads program, FIGS donates scrubs to medical professionals in resource-poor areas, to help them better serve their patients. Over 500K sets of FIGS have been donated to clinicians in more than 35 countries, often delivered personally by Hasson and Spear.

More than just suppliers, these two have become tastemakers, debuting new scrubs styles twice weekly. But though they are rising stars, they continually turn the spotlight on the medical professionals they admire, whom they call the true superstars.

“Our mission is to serve those who serve others,” Spear says. end

By Dora Dalton

Innovation - Hasson

1 CSQ Q1 2019

1. Trina Spear (left) and Heather Hasson (right) founded FIGS

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INNOVATIVE NEXTGEN FOUNDER & CEO LOS ANGELES AARON LEVANT NTWRK

Street Smart This high school dropout became a serial entrepreneur, and is now forging a new path in the way we interact online

By Dora Dalton

Viral videos, online shopping, social media— we can’t resist their siren call. So combining them into one fresh, streamlined platform seems like a logical and enticing step. Enter NTWRK and its founder, Aaron Levant, with his new approach to online interaction and unorthodox background for a company founder.

With the NTWRK e-tail app, consumers can watch exclusive, interactive videos featuring celebrity guests, and easily buy featured items while watching (or learn about pop-up shops they can visit in-person). Products cover gaming, music, streetwear, beauty, and beyond.

Levant, 35, brings to the venture his own unique perspective and zeal. Though he didn’t finish high school, didn’t go to college, and had no corporate experience, at just 19 years old he founded his first business, lifestyle-fashion trade show and festival Agenda. But his unusual résumé means he isn’t following anyone else’s script. “Sometimes I know so little about a subject, or traditional management, that I’m able to try things that others may not dare try,” he says.

Ten years after launching Agenda, he sold it to Reed Exhibitions but stayed on to run events, including the smashingly successful ComplexCon, which combines pop culture, music, art, food, style, sports, innovation, activism, and education. (The ComplexCon website calls it “our generation’s world fair.”)

He launched NTWRK in October 2018, with investors including Warner Bros. Digital Networks and MSA Enterprises (which brings with it partners LeBron James and Arnold Schwarzenegger). Levant recognizes that surrounding yourself with good people is good business.

“My goal is to become a master of hiring the best people. If there is one thing I’ve learned over time, it’s that I’m never going to achieve the goals I want unless I can attract the right talent,” he says. “Having the right human capital inside of our company is what is going to help us achieve the vision that I have for NTWRK.” Levant isn’t daunted by obstacles and is definitely one to watch. “There’s something that has always existed inside of me where I want to win at whatever I’m doing,” he says.

“Having that entrepreneurial spirit and passion to win has driven me in my career.” end

Innovation - Levant

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INNOVATIVE NEXTGEN FOUNDER & CEO NEW YORK SARAH KAUSS S’WELL

One Sip at a Time With a conscious soul and head for business, Sarah Kauss has taken over the water-bottle industry with S’well

By Samantha Brooks

Many people head to destination spas to relax and unwind, but for Sarah Kauss, going to Miraval ignited a spark in her.

“It was 2010, and I was searching for more happiness in my career, something more meaningful,” explains the New York–based entrepreneur. “I had carried a reusable water bottle for most of my adult life, but it wasn’t keeping up with my personal style or working as well as I wanted.”

Kauss recounts how she was hiking with her mom at the famed Arizona resort when she took a sip of warm water from her reusable bottle and realized that there had to be something better. “I needed something that worked harder and looked better and might be able to do more good in the world. I started writing my business plan that weekend,” she recalls.

The idea was simple: Offer three sizes of bottles (9, 17, or 25 ounces) made from non-leaching, non-toxic, triple-walled stainless steel that keeps fluids cold for as long as 24 hours or hot for up to 12 hours. Bottles are swathed in designs ranging from solid black to bright kaleidoscopic florals, allowing each consumer to find one that reflects their personal style.

“I started the company with $30,000 of my own savings and still own 100% of it today,” she says.

S’well bottles are now available in more than 65 countries, with estimated sales of more than $100M per year, quite a jump from even the success of 2014 when sales were at $10M. The product range now also includes everything from tumblers to 60-ounce bottles and even cocktail sets. Prices are reasonable for such a long-lasting product, with 17-ounce bottles priced from $35. However, success wasn’t exactly overnight.

Kauss recalls a challenging holiday season, one year into founding the company. “I didn’t have any employees, and I was working from my home office, which was a very tiny apartment. We sold 1,600 bottles, and I thought it was the biggest Christmas ever,” she says.

At that point she realized it wasn’t just her circle of friends buying the bottles, but strangers whose lives would be changed. “I still remember that first holiday shipping because that was when I saw that S’well was on its way to becoming a major force for good,” she says. Kauss points to word-of-mouth as her main source for growth, whether through

Founded 2010 Employees 100 in New York and London Notable Past Projects Launch of sister line S’ip by S’well and branching out into new product forms beyond the bottle: the Traveler, Roamer, and Tumbler Notable Upcoming Projects Launch of food containers with S’well Eats and S’nack by S’well

SARAH KAUSS

Innovation - Kauss

CSQ Q1 2019

S’WELL

public relations, social media influencers, celebrities, or buzz-worthy collaborations. “We learned early on that if someone tried our bottle, they would go out and buy it for someone else because they loved the way it looked, were often surprised by how it performed, and wanted to share their experience with others,” she says.

As far as keeping up the success, Kauss points to her efforts to transform the world through design, sustainability, and charity as

Age 43 Hometown Jupiter, FL Residence New York, NY Family Husband, Jeff, and son, Hudson (9 months) On My Wrist Diamond tennis bracelet In My Garage An electric vehicle Favorite Book Reboot: Leadership and the Art of Growing Up byJerry Colonna Education BA in acco­ unting from University of Colorado, Boulder; MBA from Harvard Business School First Job Scooping ice cream in my parents’ ice cream parlor Favorite Place to Have Business over a Drink ABC Kitchen Awards and Distinctions Henry Crown Fellow, The Aspen Institute (2018); Inc 500 (2017); Fastest­ Growing, Woman­Led Company by The Women Presidents’ Organization (2017); The Gathering’s Emerg­ ing Cult Brands (2018) Philanthropies Supported UNICEF and Breast Cancer Research Foundation Can’t Miss Events, Conferences, Summits TED Conferences, UNICEF Snowflake Ball Mentors Parents, fellow entrepreneurs, first boss at EY

her main motivations. “We’ve been active partners with UNICEF since 2015 and supported UNICEF in its efforts to provide 500,000 people in Madagascar with access to clean water through its WASH program,” she says.

Additionally, she is actively launching new categories, including food, with the launch of S’well Eats and S’nack by S’well. “We are always looking for ways to bring the optimism of the brand and the enhanced experience to more people around the world,” she says. end 57

NEXTGEN OF THE YEAR NEW YORK Words by Allison Brunner Photos by Thomas Wasper

Payal Kadakia has turned ClassPass into a successful health and wellness platform valued at more than half-a-billion dollars, but she still finds time to honor her culture through artistic expression

Dancing through the Glass Ceiling Innovation - Kadakia

Payal Kadakia 58

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CLASS PASS Founded 2013 Employees 400 Notable Past Projects Being selected for the TechStars accelerator in our company’s early days; choreographing and performing for sold-out audiences at Lincoln Center, Alvin Ailey American Dance Theater, and Bryant

PAYAL KADAKIA FOUNDER & EXECUTIVE CHAIRMAN Age 36 Hometown Randolph, New Jersey Residence Los Angeles Family Nick Pujji (husband), Harshad Kadakia (father), Geeta Kadakia (mother), Avani Kadakia (sister) In My Garage Audi Q3

Park; being named to Fortune’s “40 under 40” and Ernst & Young’s Entrepreneur of the Year New York Notable Upcoming Projects Continuing our company’s massive international expansion Collaborative Partners Fritz Lanman, ClassPass CEO

Favorite Book Steve Jobs by Walter Isaacson Education MIT First Job Bain & Company Business over a Drink Any place with highquality green tea.

Bonus points if it’s located near a great gym or fitness studio Mentors Anjula Acharia, David Tisch, Jennifer Hyman

Payal Kadakia considers herself more of a problem solver than an entrepreneur. But it’s the scale of her solution that qualifies her as the latter—and a successful one at that.

The 36-year-old trained dancer landed huge success in the form of ClassPass, a digital platform that grants users access to a variety of health and wellness studios through a single membership, which reached a lofty valuation of $610M as of June 2018. And her ambition doesn’t stop there.

What began in 2011 as an answer to her frustration with trying to find a dance class after work while living in New York City has become a platform of limitless possibilities as ClassPass grows its partner base with yoga, martial arts, and dance studios (of course); health clubs; and more, offering one convenient fee and drop-in privileges to any location in the network. “We want to be the destination for all your free time,” she says with equal parts accommodation and ambition.

As is of ten the case with disruptors who revolutionize an industry by perfecting a fresh approach to an existing dilemma, Kadakia’s rise has been swift (though it took a couple of years to build momentum).

ClassPass has raised more than $250M, including an $85M Series D funding in July 2018. The company has established 15,000 partnerships across 2500 cities, and as of March 2019, more than 65 million reservations have been booked on their platform by people around the globe—but that doesn’t mean the journey has been easy.

A compact force of effervescent energy, Kadakia—a first-generation Indian American whose parents emigrated to the U.S. in the 1970s—stands just under five feet tall. But on the day of CSQ’s visit, her black

Christian Louboutin pumps add another four inches to her height. The art deco–era Hollywood Hills home she purchased in 2017 is sparsely decorated, giving the impression that Kadakia is on the go a lot. The central space where a dining table would normally be is vacant; it serves as her in-home dance studio.

When we meet, Kadakia is looking forward to an upcoming performance with her dance troupe at the Wallis Annenberg Center for the Performing Arts as part of an Innovate Beverly Hills event. In addition to her duties as executive chairman of ClassPass, Kadakia serves as artistic director for Sa Dance Company, a traditional South Asian Indian performance art group that she founded in 2009. The congenial entrepreneur will also be giving a speech and accepting an award at Innovate Beverly Hills.

Comfortable in the spotlight, Kadakia is the consummate brand ambassador as she discusses her vision for the future of ClassPass.

To Plié or Not to Plié?

Growing up in Randolph, a small town of 25,000 in upstate New Jersey, Kadakia and her older sister did not encounter many peers of their cultural background. Her parents, who came to America with nothing but the dream of a better life, felt that embracing American culture—without abandoning their own—would ultimately give their daughters a better understanding of the world. Both were chemists by trade and valued the importance of a good education.

Kadakia credits their work ethic and dogged determination with shaping her own thirst for knowledge and capacity for resilience.

She began learning traditional Indian dance at age 3. A close friend of her mother had been a dance instructor in India, and Kadakia and a few other young Indian girls created a loose-knit community that would meet to practice in family basements. Dance became a central aspect of her childhood, punctuated by weekend travel to various

Innovation - Kadakia

CSQ Q1 2019

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digital strategy.

Even with a full-time career, though, Kadakia’s passion for dance found a way to thrive. She danced after work, every night.

She always found a way. While a student at MIT, she organized and built an activity group on campus for South Asian dance that still exists today. “Whenever I couldn’t do something I wanted to do, I figured out a way to create it,” she says. “That’s how I started taking on leadership roles.”

W hile at Warner Music Group, she founded the Sa Dance Company with some girlfriends also interested in Indian dance.

They met up to rehearse in the evenings after work. A year later, the troupe participated in the Battery Downtown Dance Festival, the city’s longest-running public dance festival.

By chance or by fate, Sa Dance Company wound up being featured on the cover of the arts section of The New York Times. The group didn’t even have a website.

“I was still working [at Warner], and my boss was surprised I came to work the next day,” Kadakia says with a laugh. She was also studying for the GMAT and contemplating a return to business school to pursue her master’s, “but I felt like the world was telling me to keep living my life and pursue my passions.”

If she wanted dance play a larger role in her life, Kadakia needed to find a job where she had more stability and control over her schedule. “I realized I needed to find a way to mesh my two lives.”

Innovation - Kadakia

Problem-Solving Epiphany

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competitions. As she grew up in Western society, dance and movement allowed her to have a relationship with cultures—her own as well as others’—that was fluid and ultimately empowering.

“Dance became this way to connect back to where I came from, and for me, it also morphed into the performance side, the artistry side. It became this place where I felt like I could become whoever I wanted to be,” she recalls. “To be able to start feeling that at a young age was such a gift for me.”

Education, and the opportunities it opened, soon became the focus in Kadakia’s life. Dance had instilled discipline in her life, and education was giving her the finer tools to succeed. She attended MIT, where she would eventually earn a degree in management science with a focus on op60

INNOVATION & TECHNOLOGY

erations research and a minor in economics.

She took a course on the history of American dance, which included icons such as Martha Graham, Twyla Tharp, and Alvin Ailey.

Also figuring into her activities at MIT were the annual culture shows presented every spring. “I would always be choreographing for my shows on my class notes,” she admits. “I just loved the idea of creating these dances.” However, she would only let herself dance if her studies were going well. “I always felt I had to earn the right to be a dancer. I knew I had to be responsible and get an education, or nothing was going to work.”

After graduating, Kadakia took a job at New York consulting firm Bain & Company.

After a few years there, she moved on to Warner Music Group, where she worked on

Several months later, Kadakia traveled to San Francisco for a friend’s birthday party.

There, she had conversations with entrepreneurs who were using technology to disrupt various industries, and the idea appealed to her. At the time, she was training in ballet and researching a class she wanted to try.

She searched online, becoming increasingly frustrated when every site she visited was booked. Kadakia eventually did find one open spot, but at that point she was so frustrated with the whole experience, she ended up not going at all.

Her epiphany was that, much like the conversations she was having with entrepreneurs pursuing other ventures, technology could be an effective vehicle for her idea as well: to help people take the next step toward living a healthier and more purposeful life.

Kadakia started researching every aspect of the fitness and wellness class market to find out the various ways people were finding classes. She started talking about her idea with friends, some of whom offered to invest in her fledgling business idea. Finally, she took the leap. Six months after she got the idea for a fitness class service, and with her parents’ blessing, she quit her job to focus solely on ClassPass. As she reviewed her

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finances with her dad, Kadakia was determined to solve this logistical pain and bring more efficiency to people’s lives. She founded ClassPass in 2011.

“The first three years were tough,” she admits. “We didn’t have the product right … but I never considered it failure.” The biggest lesson learned? “Changing customer behavior is the hardest thing in the world, and I was up against getting people off their couches,” she explains. All of the focus on branding, messaging, and launching a company, she found, is completely separate from the reality of human interaction with potential customers. “I wanted to develop a platform to help people feel comfortable walking into classes they’d never been to before.”

Thanks to the ClassPass app, which reinforces the idea that “these classes are at your fingertips,” as well as a penetration of social media, technology has been integral to the ClassPass rise. “It’s a lifestyle,” she adds. “Our brand has been shaped by our customers’ stories, responses, and needs.”

ClassPass allows subscribers to take assorted fitness classes that are convenient for them, for one monthly fee rather than multiple fees for multiple types of classes. Its network offers access to a variety of studios, gyms, and meditation classes in the cities in which it operates. Scaling the ClassPass model to include any service or activity that promotes a healthier lifestyle, such as cooking classes or even beauty services, is on the table as Kadakia and her team step boldly toward the future.

1. Payal Kadakia, founder of ClassPass, in New York City 2. Kadakia and her parents 3. A ClassPass fitness event 4. Payal in her innovative office

Innovation - Kadakia

Head of the Class 4 CSQ Q1 2019

and angel investor Fritz Lanman, who led the seed and Series A funding for ClassPass and played a considerable role in ClassPass finally hitting its stride. He and Kadakia have developed a strong professional partnership; Lanman, who served as executive chairman from 2014 to 2016, took over as CEO when he and Kadakia swapped roles in 2017. An active tech investor, Lanman has been involved in the seed rounds for Square Inc., Pinterest, EasyPost, and inDinero, among others.

ClassPass will continue to focus on global expansion and inclusivity in its outreach as well as its partnerships. While the company is headquartered in New York, Kadakia goes wherever her work takes her, which could be San Francisco, Singapore, or back to Hollywood.

Due to New York’s emergence as a tech and innovation hub in recent years, Kadakia says, a huge influx of new studios are opening all over the Big Apple. And, she points out, studio owners are entrepreneurs, too.

The New York market was also vital for gathering feedback during the early days, and L.A., a hub for health and wellness, was ready to embrace ClassPass as a regular part of the culture.

Being able to lead her company to the nex t level wh i le st i l l honori ng her a r t through Sa Dance Company has been the best of both worlds for Kadakia. With her art, she is honoring her heritage, while her business is shaping the future. “ClassPass has logged 65 million hours in experiences for people,” she notes. “It’s a privilege and honor [to have created that kind of change]; I can’t wait for the number to keep growing!” end

A key part of that team is serial entrepreneur

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Innovation - DeWolfe

VISIONARY OF THE YEAR LOS ANGELES Words by Jason Dean Photos by Ethan Pines

Chris DeWolfe’s entrepreneurial instincts paid huge dividends for the pioneering social media platform MySpace. He’s doing it again with Jam City, the mega-popular mobile game developer

His Space at the Top Innovation - DeWolfe

Chris DeWolfe CSQ Q1 2019

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Few entrepreneurs have experienced the successes of Jam City CEO Chris DeWolfe.

Over the past 15 years, he started two companies that have been pivotal in redefining the technology industry in Los Angeles. Both ventures exceeded $400M in annual revenue, and each solidified the city’s reputation as a home to the media and gaming industries.

In 2003, DeWolfe co-founded MySpace, the world’s first social media and networking platform. Two years later he sold it to Rupert Murdoch’s News Corp for $580M. By 2007, according to ComScore, MySpace was larger than both Google and the nascent Facebook, with more page views and more time spent on its site. At its height, MySpace had more than 130 million users worldwide. DeWolfe stepped down as CEO of the company in early 2009, sensing another opportunity on the horizon. He believed that the proliferation of smartphones would likely propel the mass adoption of mobile gaming. And he was right.

By the end of 2009, DeWolfe had reunited with ex MySpace co-founders Aber Whitcomb and Colin Digiaro as well as former Fox Executive, Josh Yguado, to launch a new gaming platform. The three had always had a passion for products and platforms that were in line with the cultural Zeitgeist of the moment. It was clear to them that the rise of mobile would fundamentally transform gaming, far more than it would any other entertainment medium.

CSQ first met up with DeWolfe in late 2016 as the newly christened Jam City was ramping up its partnerships with major studios such as Disney and Warner Bros. The company was simultaneously expanding its global presence to keep up with a rapidly growing global audience. DeWolfe says the company has focused intently on creating its own proprietary game brands, such as Panda Pop, and Cookie Jam, and turning them into global franchises. Today, Jam City also works with some of the biggest brands in the world, including Harry Potter and Disney’s Frozen. In 2018 the company launched Harry Potter: Hogwarts Mystery, which became the fastest game to hit $100M in revenue in Jam City’s history. It went on to become the number one downloaded game in nearly 40 countries.

In January 2019, Jam City raised $145M, bringing the company’s total financing to more than $300M. DeWolfe says the gaming market is consolidating and he sees Jam City as one of the major forces behind it. In 2018, for example, the company had three significant acquisitions, including Disney’s mobile game studio in Burbank. In addition to its Los Angeles headquarters, the gaming company has offices in Burbank, San Francisco, San Diego, Toronto, Buenos Aires, and Bogota.

DeWolfe embodies a unique position as a seasoned entrepreneur and CEO. He has

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JAM CITY Founded 2010 Employees 600+ worldwide in seven offices (Los Angeles, Burbank, San Francisco, San Diego, Buenos Aires, Bogota, and Toronto) Notable Past Projects • Harry Potter: Hogwarts Mystery — 2018 Google Game of the Year in 40+ countries and Jam City’s fastest game to reach $100M in revenue

Innovation - DeWolfe

CHRIS DEWOLFE CO-FOUNDER & CEO, JAM CITY

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INNOVATION & TECHNOLOGY

Age 53 Hometown Portland, OR Residence Los Angeles Family Fiancée, and two daughters (2 and 12) On My Wrist Nothing on my wrist— but on my ankle, I wear a friendship bracelet from my 12 year old, made at summer camp In My Garage Black Tesla and lots of arts and crafts supplies Favorite Book Creativity Inc.: Overcoming the Unseen Forces That Stand in the Way of True Inspiration by Amy Wallace and Edwin Catmull Education University of Washington, Foster School (Delivered commencement speech in 2016), USC MBA (Serving on Board of Greif Center of Entrepreneurship and previous Alumni Entrepreneur of the Year) First Job Selling Peanuts at Portland Beavers games

• Cookie Jam Franchise, Facebook Game of the Year, has generated more than $500M in revenue • Panda Pop Franchise—More than 120 million downloads Notable Upcoming Projects Mobile game based on the upcoming sequel to Disney’s animated feature, Frozen 2, and other top secret games expected to launch in 2019 Collaborative Partners Google, Apple, Facebook

when I was 13 Favorite Place to Have Business over a Drink Sunset Tower Awards and Distinctions E&Y Entrepreneur of the Year (June 2015); Most Influential TIME 100 list (2006); Producers Guild of America’s Vanguard Award (2009) Philanthropies Supported Mondays at the Mission, Habitat for Humanity, A Purposeful Rescue Can’t Miss Events, Conferences, Summits Vanity Fair New Establishment, DesignCon, USC Games Expo Mentors All of my co-founders, employees, and

1. DeWolfe co-founded MySpace 2. Chris DeWolfe, Chad Hardwick, and Jam CIty Co-founder and president Josh Yguado 3. The CEO at his new offices in Culver City

Innovation - DeWolfe

shaped two distinct and significant social technologies—both of which have been part of the fabric of millions of people’s every day lives—and this is why CSQ named him its 2019 Visionary of the Year in Innovation & Technology.

The 53-year-old CEO’s passion for the gaming industry comes from a belief that to be successful, the user must come first. “Our philosophy has always been a player-first focus,” says DeWolfe. “If we do that right, the monetization will follow.”

DeWolfe’s laid-back demeanor seems perfectly calibrated for Southern California, and perhaps that’s why he has been instrumental in attracting a wave of tech talent to the area since the early 2000s. It’s very likely that Silicon Beach would not have existed had MySpace not been a Santa Monica startup.

DeWolfe remembers the early days of MySpace, when attracting talented engineers and data specialists to the region was an area of concern. “The big challenge was: How do we get someone to move from New York City, or the Bay Area, to LA? What kind of bonuses will we have to pay them to move here? Engineers were like rock stars.”

CSQ had an in-depth conversation with DeWolfe this spring in Jam City’s imposing 40,000-square-foot headquarters in Culver CSQ Q1 2019

City, Calif., about the state of gaming, the LA entrepreneurial landscape, and the CEO’s vision for the future.

Crunching Numbers and Slaying Myths

3

DeWolfe acknowledges the numbers look good but he doesn’t let himself get consumed by them. “A creative business can’t be 100 percent data driven,” he says. “There’s got to be a mix between the magic and the measured.” To that point, Jam City relies on far more than data to shape the business and its game development. DeWolfe says the company leans heavily on talented designers, artists, engineers and writers, as well as finely honed machine learning, to constantly improve the game experience for users.

Mobile gaming is expected to be a $100B industry by 2021 and has emerged as the fastest growing form of entertainment media, in terms of revenue. In addition to its entertainment value, research has shown that playing video games can reduce stress and help users recharge, especially from work-related stress. In 2018, mobile gaming made up nearly half of all worldwide gaming A Melting Pot of Tech Talent and Storytelling revenue and this year, more than 2.4 billion The magic of Jam City’s games are ref lectpeople will play mobile games worldwide. ed in the storytelling, art, and design that According to Sensor Tower, the average time comes together in each of its products. spent playing Cookie Jam, a popular Jam “There’s no other medium where you have City game, for the three years through mid- so many disciplines working together,” De2018 was approximately 26 minutes per day, Wolfe says of gaming. Being based in LA has even greater than time spent daily on Candy enabled the company to forge partnerships Crush, WhatsApp, Snapchat, and Instagram. with academic institutions like USC, where And mobile gamers aren’t just the under DeWolfe is an advisor at the school’s Center 30 crowd; users in the 55+ age range occupy for Entrepreneurial Studies. “USC is unique the largest segment of the gaming popula- in that its gaming, business, and engineering tion (23%), followed closely by the 25-to-34 schools are collaborative, and each has been age group (21%). Another misconception is recognized globally for excellence,” he says. that gamers skew male. Nearly two thirds That brings DeWolfe back to the impor(65%) of females ages 10 to 65 in the U.S. tance of narrative storytelling in the evoplay mobile games, and they play them more lution of gaming. “If you don’t have great frequently than men. stories, it’s just not going to work,” he says.

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Innovation - DeWolfe

“Our products require a combination of sto­ rytelling and technology. There is no better place to put those together than Los Angeles, the media capital of the world.”

A number of successful tech startups have also made their home in LA. DeWolfe points to a few that he admires for their abil­ ity to disrupt their respective industries in innovative ways, including Tinder (the No. 1 dating site in the world), Clutter (a stor­ age service that raised $200M in Series D funding in February 2019), Bird (a dockless scooter­share service, named one of Time Magazine’s 50 Genius Companies of 2018), and Treehouse, which is addressing the in­ ner­city housing problem in a progressive way and opens its first location in Hollywood in this summer.

He also notes Jeffrey Katzenberg’s new company, Quibi, which will produce short­ form premium content customized for mo­ bile consumption, as a company to watch.

Katzenberg raised $1B in seed funding and, in 2018, brought on board former Hewlett Packard CEO Meg Whitman to helm his new venture.

Personalized Touch on a Global Scale

Many acknowledge MySpace was largely responsible for LA’s emergence as a legiti­ mate tech hub. Now, with Jam City, DeWolfe 66

INNOVATION & TECHNOLOGY

4

is part of the next evolution of tech and ic regions. The company has made a focused Hollywood through mobile entertainment. effort to understand local cultures and adapt With the advancement of monetization and games so they fit in seamlessly. This was a far communication technologies, DeWolfe sees bigger challenge for DeWolfe in the days of Jam City positioned to tap into the global MySpace, where expansion happened fast. In gaming market. contrast to that, Jam City games go through “Data was very difficult to manage 10 a rigorous testing regimen in each region years ago,” says DeWolfe. Today, that’s not where they are vetted first by its localization an issue. In fact, access to data that uses ma­ teams and then through a real sample group chine learning helps Jam City to make crit­ of users. Currently over half of Jam City’s ical business decisions in minutes. Without users play outside of the United States. that kind of information, decisionswould take Globally, there are several areas of emer­ days or weeks. “We are able to sift through ging potential, says DeWolfe, including In­ mas sive amounts of data to give us an accu­ dia and Brazil. The challenge in these and rate snapshot of how our games are being similar markets will be how to make the used globally and the metrics associated games work seamlessly with lower­end An­ with them,” says DeWolfe. droid devices and developing strategies to Jam City creates a distinct and personal­ engage users so that when they transition ized gaming experience for each of its users. to higher­end devices and have greater dis­ When the company released its Harry Pot­ posable income, Jam City will be positioned ter game in spring 2018, for example, users as a go­to gaming destination. could choose from a wide array of ethnically specific avatars. “The game is all about al­ The Main Ingredients lowing users to express themselves authen­ DeWolfe has enjoyed much success, yet he tically,” says DeWolfe, “and be whomever remains humble, welcoming advice and they want to be while they journey through guidance from many different quarters.

Hogwarts.”

“Over the years I have found I am the most One area where Jam City has been able successful when I can empower the talented to succeed where MySpace didn’t is in its ex­ people around me,” he says. The corporate pansion to international markets, as well as culture at Jam City puts the focus on en­ acculturating its games to specific geograph­ couraging curiosity and taking bold chances.

4. DeWolfe and Yguago with Jam City team members at their Culver City offices

Innovation - DeWolfe

5. DeWolfe, Yguado, and Co-founder and CTO Aber Whitcomb

6 CSQ Q1 2019

5

slate of games, which includes a great mix “We operate in a highly creative industry and of Jam City–created brands and third­party are always on guard against being what’s brands around which we’re creating new mo­ expected and ordinary,” says DeWolfe. “We know we need to be innovative and excep­ bile games,” says DeWolfe.

And because DeWolfe has been immer­ tional in all we do.” sed in mobile gaming for nearly a decade These days DeWolfe is more than just a CEO, he’s a dad of two young daughters. now, he understands and can respond to its He learns a lot from the honesty of his kids. evolution. In just the last few years, he says, the demographics of gaming have expanded His 12­year­old daughter can be brutal in her critiques of his game launches. “That to include the 7­year old to the 70­year old. is a completely different experience for me. “There are puzzle games, narrative games, strategy games—something for every age, It’s an entirely fresh take on the games we create and it gives me insight and perspec­ skill level, and interest,” he says. Add a layer tive into a part of the audience I didn’t know of social that lets players enjoy the experi­ ence communally, and you’ve taken mobile as well,” he says. entertainment to a new place.

He is also a passionate philanthropist; Last but not least, of course, DeWolfe mentoring young entrepreneurs; support­ ing A Purposeful Rescue, an LA­based dog is, well, happy. When he thinks about his shelter; Habitat for Humanity; and Mon­ 10­year plan, DeWolfe acknowledges that days at the Mission, a homeless youth pro­ it looks much different than it did when he left MySpace. “Back then, my plan would gram based out of Union Rescue Mission have been to start a new company every downtown. four or five years,” he says. “But I realize now how lucky I am to be at Jam City. I get The Next Big Jam The future for Jam City is all about reach­ to work ever y day with a brilliant team, in a hyper­creative industry that’s always ing new users through partnerships with changing and continually challenging me global brands—like Disney—with which it launches the game Frozenlater this year, to do better.” end and the chance to hit big in countries like Japan, where Disney­branded products are hugely popular. “We are excited about the 67

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70 Meetings & Retreats 72 World’s Top Tech Cities 73 Golf Getaway

Destinations

Part 3

Destinations - Cover Explore Costa Rica: Pura Vida (p.73) as your dreamland for vacation and relaxation, expanding the horizon of your senses to fuel the enjoyment and devotion of golf even further.

CSQ Q1 2019

69

MEETINGS & RETREATS

The Resort at Pelican Hill

Idyllic Settings Destinations for Productive Retreats

Let an Italianate estate provide the backdrop for your company’s next getaway

When you think of a corporate retreat, you might picture a dull hotel within range of an airport where your team will zone out on a diet of stale air-conditioning and lukewarm coffee. Chosen thoughtfully, however, retreat locations, like these two, can provide the setting and stimulation for a truly productive getaway.

By Norah Lawlor 70

DESTINATIONS

Location Newport Beach, CA Keys 332 Meeting Spaces In the main hotel, six indoor meeting rooms accommodate groups from 28 to 520, and two outdoorterrace function spaces are available.

The Mar Vista space is an adjacent, stand-alone facility with options

to accommodate 50 to 500 guests Dining Eight options Amenities Spa, two fitness centers, two golf courses, and three pools Activities Fitness classes, cooking classes, wine tastings, golf, biking, hiking, movie nights, and painting classes Contact pelicanhill.com

Photo Credit: Courtesy of Pelican Hill

Book one of these stunning locations for a corporate retreat that will get people talking, thinking, and team building.

- Meetings

Mix business with pleasure at this sprawling resort—with 204 guest rooms and 128 villas— set just above a protected coastal enclave, and allow the one-of-a-kind venue to provide the perfect place to unwind and connect with colleagues.

Known for his highly symmetrical villas that dotted the Venetian landscape in the 16th century, Andrea Palladio influenced residential design throughout Italy, and even across the globe to Southern California, where the Resort at Pelican Hill has modelled itself after his classical style. Italian elegance merges with Newport Beach’s relaxed atmosphere at this coastal enclave, just 50 miles south of Los Angeles. The property sprawls across 504 acres with multiple swimming pools, a 23,000-square-foot spa, and 36 holes of Tom Fazio–designed golf, allowing for a multitude of activities to enhance team building and networking.

The resort’s 23,000 square feet of on-site function space can be transformed for a variety of purposes, making it ideal for intimate gatherings or large-group retreats. There’s also a stand-alone event space, Mar Vista, that offers a dedicated arrival area, away from the main activities of the hotel for added privacy and seclusion. With its own outdoor event lawn and Mediterranean-inspired rotunda, it’s the ideal setting for those tired

of being stuck in traditional board rooms and conference centers.

Recognized as a five-star, five-diamond property, the Resort at Pelican Hill also features eight culinary options, including the formal Andrea restaurant, specializing in Northern Italian fare; the open-kitchen, relaxed Pelican Grill, which overlooks the ocean; and the Great Room Social Lounge, which hosts live music and afternoon tea.

Additionally, the resort can work with your team to create catered meals to serve specific needs, and even offers cooking classes with a chef.

After meetings are done, retreat to the plush guest rooms, which start at 847 square feet and boast private terraces, fireplaces, hand-hewn beamed ceilings, and views of the ocean or lush gardens.

The Point Resort Unwind Like a Rockefeller

Destinations - Meetings

This private escape works as a boutique hotel, but book it for a full buyout and enjoy it as your private home.

Discretion and luxury are taken to new heights at The Point Resort. The small, exclusive property encourages secure discussions, as only guests are allowed on the property, no more than 22 at a time, and no one under the age of 21. An Adirondacks escape for the Rockefeller family from 1930 to 1983, it has been lovingly maintained and recently updated (a renovation was completed last fall with a freshening of all guest rooms, the Great Hall, and The Pub), offering unique accommodations and facilities that are reminiscent of a high-society Great Camp. Seasonal outdoor activities in line with the location make it an exciting destination year round. Eleven guest rooms are spread out among four buildings, maintaining the spirit of a private lakefront retreat, complete with furniture from the early 19th century. Take in the fresh air, make memories, and achieve your corporate goals.

Location Lake Saranac, NY Keys 11 Meeting Spaces The entire camp and its 75 acres are yours.

Dining Overseen by Executive Chef Loic Leperlier, who was recruited from a three-Michelin-

CSQ Q1 2019

star restaurant and five-star resorts in Europe and French Polynesia Amenities A captained 33’ 1933 replica Hacker-Craft mahogany speedboat steals the show; the resort is also pet friendly, offering dedicated pet beds, food, and even life vests

Activities Lake swimming, waterskiing, tubing, tennis, cocktail cruises, private cross-country skiing and snowshoeing, ice skating, and outdoor snow barbecues Contact thepointresort.com

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Dublin, Ireland

WORLD’S TOP TECH CITIES

Ranking #19

Where to Build

In Ireland, the closest Englishspeaking (EU) nation to the United States geographically, the road is rising up to meet tech companies, and the Grand Canal Dock area in Dublin has become known as the Silicon Docks. It’s already home to the European headquarters of giants Google, Facebook, Twitter, AirBnB, Apple BT Ireland, and IT consultants Accenture—and is attracting more companies by the day. Nearly $500M was invested in Ireland by technology firms in 2017.

Tech isn’t just for Silicon Alley, Silicon Beach, or Silicon Valley—in cities around the globe, excitement and innovation are buzzing, according to a Savills recent survery

By Norah Lawlor

Toronto, Canada

Ranking #11

and talent moves from the US to Canada. Or it could be the coffee: According to the flat white index, a decent latte will set you back $2.50 in Toronto, well below the $3.42 tech city average.

A recent report suggests that in the past five years, Greater Toronto’s tech industry has grown by 50%, making the city the fourth-largest tech hub in North Population: 2.7M America, employing 240K peo- ‘18 VC: $2.8B ple. The exchange rate, combined Flying Time from LA: with Canada’s friendlier immi- 4 hours, 35 minutes gration policies, have been cred- Flying Time from NY: ited (or blamed) for company 1 hour, 11 minutes

Population: 500K ‘18 VC: $3.2B Flying Time from LA: 10 hours, 35 minutes Flying Time from NY: 6 hours, 52 minutes

Destinations - Tech Hub Tokyo, Japan

Ranking #13

Maybe the world’s first high-tech city, Tokyo is home to one-fifth of the nation’s information technology companies. And there’s much more to come with preparations well underway for the 2019 Rugby World Cup and 2020 Olympic Games, and the recent creation of a 5G testing laboratory in a joint venture between Japan and India (through companies Rakuten and Tech Mahindra), which will help develop and set the standard for services delivered to one-sixth of the world’s population.

Population: 9.3M ‘18 VC: $8.3B Flying Time from LA: 12 hours Flying Time from NY: 14 hours, 2 minutes

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DESTINATIONS

Destinations - Golf Getaway 1

An Arnold Palmer-designed golf course, incomparable tropical beauty, white-sand beaches, first-class resorts and dining—Peninsula Papagayo is a dreamy all in one

By Ryan Byers

Sit back, relax, and imagine a land with lush rainforests, bright blue-and-green coastal waters, sparkling white-sand beaches, and towering volcanoes, with idyllic tropical weather and endless outdoor activities. At the end of an adventurous day, picture yourself winding down in a hammock on the beach, cocktail in hand, listening to the waves crash and colorful birds chirping in countless trees.

Locals live by the motto pura vida, meaning “pure life.” No wonder Costa Rica is increasingly becoming a favorite vacation destination.

Situated on the North Pacific corner of Costa Rica, many consider Peninsula Papagayo Latin America’s crown jewel. Spread over 1,400 magical acres with stunning views from every hilltop bluff, it’s the ultimate playground for nature lovers and outdoor enthusiasts, offering fishing, surfing, hiking, golfing, ziplining, mountain biking, water activities, and many ways to just relax.

Golfing in Paradise

GOLF GETAWAY

Costa Rica: Pura Vida CSQ Q1 2019

Peninsula Papagayo is home to one of the most impressive golf courses I have ever set foot on. Designed by the legendary Arnold Palmer, this 18-hole, par-72 championship course has the resort golfer in mind. This stunning

piece of property sits on the tip of Peninsula Papagayo, nestled in the mountainside along the Pacific Ocean. The 6,788-yard masterpiece winds its way through 125 acres of forest, valleys, and cliffs. Dramatic elevation changes, wide fairways, and large greens provide a fair but challenging test of your golf game.

Reaching the signature par four, 436th yard, sixth hole, you feel as though you have arrived at the top of the world. The elevated tee is situated more than 200 feet above the doglegged fairway below and the putting green is perched on a cliff just above the ocean. With jaw-dropping views on nearly every hole, plus the company of more than 100 species of birds and white-face monkeys swinging from trees, you might be distracted from your golf game by all the natural beauty. However, a little sacrifice to your score is worth it. Peninsula Papagayo’s Ocean Course found its way onto Golf Digest’s “Top 100 Golf Courses Outside the United States.”

Four Seasons, Five Stars

The peninsula features two first-class resorts, both offering out-of-this-world service with their own distinct character and charm. Four Seasons resorts are continually recognized as 73

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the elite home away from home for the world’s gym. The menu of specialty massages includes luxury travelers. The Four Seasons Resort the bamboo massage, using fresh bamboo Costa Rica at Peninsula Papagayo is no excep- stems to deep pressure points and relieve tion. The only five-star resort in the country, muscle stiffness and stress. it recently underwent a multimillion-dollar Rest assured that during your stay at the renovation and offers its guests the perfect Four Seasons you will experience the utmost balance of luxury and adventure. Located just luxury, serenity, and fun, while the service will 40 minutes from the international airport in exceed your expectations. capital city Liberia, the Four Seasons Resort Costa Rica is set on a peninsula in Guanacaste Andaz’s Tropical Touch surrounded by two golden-sand beaches. The Just down the road is the Andaz Costa Rica Reperfectly manicured grounds feature three sort at Peninsula Papagayo. Andaz is Hindi for pools, each room includes a private balcony “personal style,”celebrating the individuality of with sweeping ocean views and contemporary, each guest and the uniqueness of the propluxury furnishings with an authentic local feel erty. Its laid-back vibe will capture you from thanks to Costa Rican designs and art. the moment you arrive in the open-air lobby.

The resort has multiple dining options The welcoming staff greets you for a quick with local and international cuisines utiliz- and easy, one-on-one check-in process in the ing a farm-to-table dining approach for the comfort of a cozy chair instead of the typifreshest and most delicious food. Bahía Grill cal standing counter. The resort captures the features Latin American flavors, with indoor magic of Costa Rica’s pristine natural beauty and outdoor seating options. Dine with a pan- with a sense that it sits in the middle of the oramic view of the ocean at Pesce, an Italian rainforest, with breathtaking views of Culebra seafood kitchen where the chef adds a local Bay, and 153 luxury guest rooms, including flare. Nemare is a premium steakhouse over- 21 well-appointed suites with modern designs. looking the golf course, where on the beautiful The Andaz features four amazing dining outdoor deck or in the chic indoor space you options. Rio-Bhongo is the main open-air reswill enjoy the finest cuts in the country. Añejo taurant, featuring all-day local cuisine. When is an indoor-outdoor casual-dining option in the sun sets it becomes a popular gathering the center of the resort, displaying beautiful spot for dinner and drinks, offering brick-oven ocean views, the perfect spot to get a quick empanadas and pizzas as well as grilled meat bite, coffee, or a fresh juice on your way out and seafood entrees along with specialty cockto enjoy the day. tails. For the ultimate in Latin American tapas, At the end of your adventurous day, there head down to Chao Pescao, where you will enis no better place to unwind than the newly joy a taste of Latin home-cooking in a relaxed reimagined Four Seasons Resort Costa Rica atmosphere with views of Marina Papagayo Spa, which includes 18 treatment rooms, tran- and Culebra Bay. Along with live music, you quil relaxation lounges, spa, steam, sauna, and can experience an innovative mixology pro-

Destinations - Golf Getaway 4

1. Overview of the spectacular Penin­ sula Papagayo in Costa Rica 2. The signature par 3, 7th hole. A popu­ lar hang out for the local white faced monkeys 3. The par 4, 333­ yard 15th with a well guarded green sur­ rounded by breath­ taking rainforest 4. Aerial of the par 3,17th green, with playa prieta just steps away from the 16th fairway 5. Bike path winding through Peninsula Papagayo 5 74

DESTINATIONS

Destinations - Golf Getaway 6

gram where you will learn to mix some local favorite cocktails and wind down from your adventurous day. Ostra, the resort’s signature restaurant, serves the freshest locally sourced seafood. With a unique ceviche bar, you can personalize your perfect mixture for the chef to prepare. The outdoor patio is a beautiful setting among the rainforest, and the private, cabana-like booths offer a romantic haven.

Don’t be surprised if you hear howler monkeys in the trees surrounding the restaurant.

The Andaz Beach House is a unique dining experience on Nacascolo Beach just a few minutes away. You can enjoy locally inspired, casual favorites such as salads, tacos, burgers, and fresh fish with your toes in the sand.

Along with dining, the Beach House offers games and endless water activities such as paddleboarding, canoeing, water biking, and snorkeling.

To unwind and experience the ultimate in relaxation, head to the 11,000-square-foot Onda Spa, with its nine treatment rooms, including three outdoor spaces where you will be serenaded by local birds. In the Onda Spa couples’ suite, enjoy side-by-side treatments along with a luxurious soaking tub and private CSQ Q1 2019

relaxation area. Unwind with one of the sumptuous treatments featuring local ingredients, traditional techniques, and a team of trained experts.

Living the Pura Vida

If you want to be among the fortunate few who call Peninsula Papagayo home and live the pura vida lifestyle, opportunities are now available. For the first time in more than a decade, Peninsula Papagayo is offering a new residential phase at the Four Seasons Private Residences. Its eco-chic Prieta Bay Collection is part of the destination’s $100M reimagination now well under way. The newest development consists of nine Four Seasons Estate Homes and 11 Four Seasons Private Villas, stunning residences perched high on the hilltop bluff directly between two beaches; the white-sand Playa Virador to the south and Prieta Beach to the north, which is also home to the first-class Prieta Beach Club, only available only to homeowners. The stunning villas start at 4,876 square feet of living area, priced from $3.9M. For more information, contact Steve Grubba at steve.grubba@ppgy.net.

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6. The 5-star Four Seasons Costa Rica at Peninsula Papagayo 7. The Andaz Costa Rica at Peninsula Papagayo

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PATH TO PROSPERITY HOWARD GROBSTEIN Principal Grobstein Teeple LLP

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BUILDING A CULTURE OF INNOVATION JIM FREEDMAN & GARY RABISHAW JF: Chairman & Managing Director, Intrepid Investment Bankers; GR: Managing Director Intrepid Investment Bankers

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HOWARD GROBSTEIN Principal Grobstein Teeple LLP Los Angeles, CA

Howard is the Co-Founder and Managing Partner of GT. He is a Certified Public Accountant, Certified Fraud Examiner, and Certified in Financial Forensics by the AICPA. He specializes in all matters of business consulting, including business valuation, business management, back office accounting and fractional CFO services, and transactions and due diligence. He graduated from California State University, Northridge with a Bachelor of Science in Business Administration, with an emphasis in Accounting. The only thing Howard loves more than GT (affectionately referred to as his third child) is his family. Howard and his wife, Sheba, have two children —Aaron and Reisa. The family loves to travel and experience places and foods from around the world. As a devout car enthusiast, you can find him enjoying his classic cars, which include a 1955 Chevy Bel Air, a 1968 Chevy Chevelle, and a 1970 Ford F250 pickup truck.

PHONE 818/532.1020 EMAIL hgrobstein@gtllp.com WEBSITE gtllp.com ADDRESS 6300 Canoga Avenue Suite 1500W Woodland Hills, CA 91367

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While no one relishes the inevitable, leaving your survivors adequately equipped to resume the continuum of life after your departure is a universally shared preference. That’s why establishing a living trust is essential. Whether you wish to form a trust or are seeking support on financial accounting or distribution calculations related to a trust or receivership, this is an area that requires the services of a professional who can fulfill the role of liquidating trustee, estate trustee, disbursing agent, and financial advisor with seamless precision. Establishing parameters for estate management for your heirs, including the transfer of wealth, should be undertaken with a financial partner that can provide guidance commensurate with your needs.

CSA - Grobstein Loan-Out Corporations

Perhaps you’re interested in setting up a loanout corporation but want to know more about how it works. Having a professional manage the day-to-day affairs related to this aspect of financial diversification is highly recommended. A loan-out corporation is a separate legal entity, usually set up for an actor, recording artist, or public personality, to create corporate legal protection. When someone sets up a loan-out, they become an “employee” of their own corporation. Thus, the corporation lends the services of that individual to an employer, hence the term “loan-out.” A production company can save money hiring a loan-out corporation, because no taxes will have to be paid for that person.

with professional guidance. Strategic philanthropy is a great way to differentiate your company and can even be a core value for an entrepreneur.

Tax Planning

Knowing the tax code is not your responsibility, but knowing someone who does—and consulting with them on such matters—is. Matters concerning real estate, business structures, retirement plans, college savings plans, and more should be taken up with a skilled financial consultant who can consult with you in formulating an approach that aligns with your goals.

Real estate investments provide taxable losses and unrealized appreciation. But take heed: The winds of change are swirling around the estate tax code. While Bernie Sanders’ “For the 99.8% Act” (which is essentially an estate tax) may not stand a chance of passing in the current political climate, the principle of his argument is resonating in the general population, which necessitates the need for informed counsel when deciding what action is best for your financial situation.

Likewise, a review of your business structure is essential to assess that all tax-related matters are properly leveraged in accordance with current codes and standards. While the short-term priorities tend to spend more time in the spotlight during tax season, it’s important to remember long-term priorities such as retirement plans and college savings plans.

Don’t neglect reviewing and analyzing your approaches in these areas to ensure they maximize your tax savings.

In summary, innovations—in tax software, accounting technology, and the integration of the two—prove that the fluidity of information will always be partnered in kind with our ability to process, analyze, and react to that information. Now that you know what you need to know, find someone who can help you best apply these priorities to your life situation. end

Strategic Philanthropy

Strategic philanthropy refers to focusing charitable activities around a specific cause that in turn benefits a company’s respective business interests. Strategically leveraging this relationship in a way that serves both the business and the charitable organization without impugning the integrity of either should be undertaken

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INDUSTRY FINANCE

SPECIALTY INVESTMENT BANKING

BUILDING A CULTURE OF INNOVATION

Companies that practice being first, better, or different are models of success

JIM FREEDMAN Managing Director Intrepid Investment Bankers LLC, a subsidiary of MUFG Union Bank Los Angeles, CA

The pace of innovation is accelerating faster than ever. Our Commercial & Consumer Technology team had a chance to see much of this innovation in action at the recent 2019 Consumer Electronics Show in Las Vegas.

Innovation takes many forms, ranging from evolutionary to revolutionary. Countless evolutionary technologies were featured in the main exhibits—improved TVs, more immersive audio, new smart home technologies, new modes of charging, ways to protect and carry mobile devices, the latest gadgets, and more.

However, what caught my attention were the revolutionary technologies—the latest in artificial intelligence, advanced robotics, driverless cars, and drone technology, plus the hundreds of early-stage companies that were featured.

We began to think about how companies foster innovation in their enterprises and what common threads exist among these highly innovative companies. What actions or inactions are taken by key stakeholders to encourage company leaders and employees to take risks and think differently? What separates the innovators from the rest of the pack? Like most people searching for answers, we turned to Google. If you input the search term “most innovative companies,” more than 4.3 million results are returned. We decided to review Forbes’ “Top 100 Most Innovative” list and, of course, it was littered with obvious tech and internet titans like Tesla, Netflix, Amazon, Facebook, and Tencent (although Apple and Microsoft were notably absent, and Alphabet was way down on the list at No. 79). At the same time, numerous “old economy” companies such as Marriott, Visa, Anheuser-Busch

InBev, General Mills, and others were included as most innovative. What’s the link between these businesses? And how do middle-market companies emulate successful companies to stay at the forefront in their industries?

Forbes uses the term the “innovation premium” as the core principle for their rankings.

Innovation premium compares a company’s equity market capitalization to the net present value (NPV) of the estimated projected cash flows of its existing business lines. The greater the amount by which the market valuation exceeds the NPV of its inherent cash flows, the higher the innovation premium and the higher the position on the top 100 list. This analysis resonated with me. As an M&A advisor selling or raising capital for companies, we routinely see buyers ascribing widely varying valuations to the same company. Why is this? A company’s valuation must be linked to its cash flows but the ability to garner a premium valuation is only to be achieved when a prospective buyer believes that a company’s leadership and culture will enable it to out-innovate competitors in the future, or that such buyers will enhance a company’s cash flow or future prospects beyond what it could do alone. Leadership in innovation is often the differentiator between a market valuation multiple and an outlier premium multiple.

CSA - Freedman GARY RABISHAW Managing Director Intrepid Investment Bankers LLC, a subsidiary of MUFG Union Bank Los Angeles, CA

Jim Freedman is managing director of Intrepid Investment Bankers, a specialty investment bank that provides mergers and acquisitions, capital raising, and strategic advisory services to middle-market companies across various industry sectors. He has more than 35 years of investment banking and corporate finance experience and is an expert on the financial aspects of corporate strategy.

Gary Rabishaw is a managing director at Intrepid and head of the Commercial & Consumer Technology practice. He has been involved in numerous domestic and cross-border transactions, including mergers and acquisitions, private equity capital raises, and financing for companies spanning the technology, consumer, industrial, healthcare, and business services sectors.

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Be First, Better, or Different

The most successful innovators identify consumer trends before they happen—or disrupt existing trends and capitalize on opportunities better than their competitors. These companies provide a working environment that

QUOTE:

THE MOST SUCCESSFUL INNOVATORS IDENTIFY CONSUMER TRENDS BEFORE THEY HAPPEN—OR DISRUPT EXISTING TRENDS AND CAPITALIZE ON OPPORTUNITIES BETTER THAN THEIR COMPETITORS

PHONE 310/478.9000

empowers innovation and encourages team members to create, lead, test, fail, and start anew. Innovators also replace themselves by introducing next-generation products before competitors’ step in to fill a void. Apple’s evolution of the iPhone and iPad is the preeminent example of this strategy.

One of our recent clients is emblematic of a strategy to be first, better, or different.

In this case, they successfully achieved all three.

We represented a highly innovative company called Blue Microphones in its sale to global consumer electronics leader Logitech International (NASDAQ: LOGI) in 2018, after having previously sold Blue to a private equity firm in 2013. Since its inception, Blue has engendered a unique culture of creativity and innovation in an industry in which the underlying technology dates back to the 1600s.

Blue’s founder and subsequent leadership led with innovation; all products had unique form factors and sonic signatures and enabled new-use cases. Blue products also featured distinctive names such as the Bottle and Spark, Yeti and Snowball, which were an extreme departure from the traditionally staid microphone industry, where the best-selling microphone is the SM58. With an unconventional approach, Blue immediately distinguished itself in a competitive industry and took this a step further when it debuted the first USBconnected digital microphones. Its products spoke to the internet generation in a new way due to its design-forward yet retro brand signature backed by brand credibility, having supplied its products to platinum-selling artists and music producers who work with international musical icons such as Sting, Coldplay, Bob Dylan, and Justin Bieber.

Content creators quickly adopted Blue’s products for use with Skype, podcasting, and home recordings, a trend that Blue identified early on and enabled with a suite of affordable microphones targeting next-generation content creators. Fast forward, and Blue is now the ubiquitous tool for digital content creation, having built a broad suite of products to address nearly every consumer recording application. The company’s differentiated culture, consistently executed over two decades, enabled Blue to garner a premium valuation in a sale to Logitech.

EMAIL jfreedman@intrepidib.com grabishaw@intrepidib.com WEBSITE intrepidib.com ADDRESS 11755 Wilshire Blvd.

22nd Floor Los Angeles, CA 90025

Technologies of Westlake Village, Calif., identified this need and embarked on a journey to revolutionize the tabletop industry by incorporating thermal technology into dishware.

This spawned Ember, a company that ranked high on the Forbes most innovative list due to its ability to constantly innovate. Ember’s first product, the Ember Travel Mug, launched nationally in Starbucks in 2016 and sold out in several days. Ember’s second product, the Ember Ceramic Mug, launched in 2017 and sold more than 100,000 units in the first six weeks, earning it the distinction as one of Time Magazine’s 25 Best Inventions of the Year.

At the same time, Alexander and Ember were conceptualizing new ways to leverage Ember’s intellectual property. Within 12 months, Ember was not only a consumer brand but had also developed products for hospitality and healthcare. Not every company can move this quickly.

Ember’s core DNA mirrors Alexander’s philosophy: “Nothing is impossible. There are limits to innovation. Every idea is worth exploring.

Move quickly, or the company will pass you by.”

Importantly, Ember successfully built its team to support this vision, attracting professionals who thrive in a fast-paced, ever-changing environment. This alignment of team and vision is critical to maintain an innovation culture successfully.

CSA - Freedman

Solve a Problem Before It Exists

Have you ever thought that you wanted your dishware to have self-contained heating elements to keep your food and drinks warm or cold? Innovator Clay Alexander, CEO of Ember

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Position Your Business as a Target

For even the most prolific innovators, strategic acquisitions can act as an outsourced R&D function to bolster internal capabilities. Technology heavyweights such as Amazon, Google, Facebook, and Apple acquire dozens of companies each year, paying hefty premiums to acquire revolutionary technologies or innovative companies. Amazon acquired Ring for reportedly north of $1B in 2018; Google acquired Nest and Dropcam for a combined $3.8B; and we saw Facebook become a leading innovator in augmented reality overnight through the acquisition of augmented-reality headset maker Oculus for more than $2B in 2017. Each of these targets shared the attribute of being first, better, or different in a niche category that eventually fell within the sights of a large acquirer.

How do you, the business owner, apply these cases to your own business? Does your company culture support innovation? Is your organization and leadership aligned with your vision? What changes would enhance the value of your company? Building an innovative culture is an important starting point for any company. end

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INDUSTRY FINANCE

SPECIALTY WEALTH MANAGEMENT

MODERN FAMILY OFFICE

ROBERT DALIE Executive Director, Investments The Summa Group of Oppenheimer & Co. Inc. Los Angeles, CA

In his role at The Summa Group, Robert Dalie oversees wealth-planning capabilities, one of the core pillars the group is founded on. Dalie’s specific expertise and experience lend themselves to entrepreneurs, senior executives, fiduciaries, and founders who have recently experienced or are about to experience a life-changing financial event. This proficiency has allowed him to play an integral role within the core advisory teams that deal with pre- and post-liquidity events. He has developed a reputation for specialized work with sudden wealth from inheritance, divorce, stock sales, estate planning, and closely held business sales. To effectively offer this depth of service and experience, his practice is limited to a select group of individuals and families for maximum impact. Forbes, Barron’s, and Research Magazine have recognized The Summa Group in their annual advisor rankings as a top wealth management team. Dalie has been a central part of The Summa Group since its founding in 2003.

PHONE 310/446.7501 EMAIL robert.dalie@opco.com WEBSITE opco.com ADDRESS 10880 Wilshire Blvd., 24th Floor Los Angeles, CA 90024

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C-SUITE ADVISORY

Innovative technology promotes the integration of outside financial advisers, improves communication, and heightens cybersecurity for family offices CSA - Dalie

Early in the history of family offices, there was a misconception that the purpose of the investment-focused family office was to exclude outside wealth managers. However, most family offices embrace a collaborative approach to serving their families’ investments, using a combination of in-house wealth management and outside wealth managers, with the ultimate goal of ensuring that the family is getting the best and most tailored investment advice for their circumstances, regardless of where that manager may be. The Summa Group of Oppenheimer & Co., Inc. is pleased to work as an outside wealth manager to many family office clients. The key for us in achieving collaborative service with a family office client has been the adoption of high-end information-sharing technology.

“One frustration that pushed my family office clients away from outside wealth managers was inefficient access to information,” says Elizabeth Glasgow, a private-client attorney for ultra-high-net-worth families in Los Angeles and New York. “Clients with substantial wealth and relationships with more than one financial adviser would receive different account statements, product analyses, or spreadsheets from each adviser, but with no mechanism to assess the performance of their investments holistically, making it difficult to determine if there

QUOTE:

THE KEY FOR US IN ACHIEVING COLLABORATIVE SERVICE WITH A FAMILY OFFICE CLIENT HAS BEEN THE ADOPTION OF HIGH-END INFORMATION-SHARING TECHNOLOGY

were inappropriate risks when considering the investments across the different managers.”

The Summa Group and other leading wealth management teams that work with family office clients have created innovative information-sharing platforms to remove barriers to information between outside wealth managers and the family office. Such technology consolidates and provides immediate access not just to the investments we manage, but for all of the outside wealth managers’ investments and the family office’s direct investments. While family offices at any stage benefit from this broad information-sharing approach, it has been particularly well received by family offices in the early stages that do not yet have their own platforms.

“When a family office is just starting, they are delighted to find an outside wealth manager partner that is able to offer access to technology, which may not have been one of the initial areas of commitment in the establishment of the new family office,” Glasgow says.

Our technology is also nimble, and for those family offices that have created their own data platforms, our information is easily transferable and allows us to pursue to same result of integrated reporting that promotes investment assessment and risk analysis. Our technology also goes beyond investment figures and performance to include information and reports on research and coordinated strategies addressed with family office employees, as well as reporting on investment advisory fees.

The maintenance and ability to access and retrieve this information has been important to family office clients looking to take advantage of the tax deductibility of investment advisory fees and other family office expenses. Under the Tax Cuts and Jobs Act of 2017, only a family office entity that is operating as an active “trade or business” is eligible to deduct operating expenses (including investment advisory fees) under Section 162 of the Internal Revenue Code.If the family office falls short of being a trade or business, and is instead determined to be providing mere administrative services, investment oversight, and/or record keeping, then the expenses, under the new tax law, are no longer deductible. With family office clients potentially having investment advisory fees and other expenses in the millions or tens of millions of dollars, the issues of deductibility is critical.

It is also a fact-specific determination, as illustrated in the recent case, Lender Management v. Commissioner of the Internal Revenue Service. While many factors must be met to

CSA - Dalie

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qualify a family office’s operating expenses as tax deductible, going through the analysis as to whether the qualification is possible is top of mind for family office clients. Glasgow agrees. “Structuring a family office to qualify [for tax-deductible operating expenses] is the most frequent conversation that I am having with ultra-high-net-worth clients at this time,” she says. An outside wealth manager who contributes to providing and properly classifying information in support of that determination is key. Of course, the benefits of technology to share information and improve a family’s wealth management does come with a downside: creation of a target point for cybercriminals. No sooner had we started providing our information-sharing technology to family office clients than we were looking for way to exceed the cybersecurity protections already in place. Cybersecurity covering all functions of a family office—from protection of financial and identity information to protection of family travel plans to thwart physical security threats—is among the most important considerations that a family office can address.

The endgame for all outside wealth managers is a high-quality client service experience for both family office employees and family members themselves. While technology increases the opportunities for outside wealth managers to be seamlessly integrated into the family office’s platform, we still believe that the value to our family office clients is the human connection to our team. end

©2019 Oppenheimer & Co., Inc. Transacts Business on all Principal Exchanges and Member SIPC 2403227.1. Oppenheimer & Co., Inc. does not provide legal or tax advice, but will work with your other advisors to assure your needs are addressed.

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INDUSTRY INSURANCE

SPECIALTY CORPORATE BENEFITS LIFE & HEALTH

23ANDME AND YOUR FINANCIAL FUTURE MARTIN LEVY, CLU/RHU Founder & President CorpStrat Woodland Hills, CA

An unintended and growing impact of genetic testing is that insurance products will slim, retract, and perhaps disappear CSA - Levy

Martin Levy, CLU/RHU, is president and founder of CorpStrat, located in Woodland Hills, Calif.

The firm comprises of professionals in human resources, executive leadership, insurance, employee benefit design, compensation, and tax and financial planning, and is a leading agency in employee benefits, serving hundreds of companies in Southern California. CorpStrat is one of the largest insurance brokers in the Greater Los Angeles area.

PHONE 818/377.7260 EMAIL marty@corpstrat.com WEBSITE corpstrat.com ADDRESS 21021 Ventura Blvd., Suite 200 Woodland Hills, CA 91364

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The secrets were once buried deep, hidden inside the paired strands of DNA inside every person.

The mysteries of the genome—an individual’s complete set of DNA—remained shrouded in 1990, when the Human Genome Project began.

A watershed moment came in 2003 when the international research project completed its mission, sequencing the genome. Decoding the blueprint for every human being—what directs their development and influences their health—has provided revolutionary insights ever since.

That is why we have seen a significant spike in genetic direct-to-consumer tests from companies like 23andMe. People across the planet are consumed with learning about their genetic family histories. This is a compelling story, now prevalent in movies, books, and television. The story will only get more intriguing.

23andMe.com offers risk reports for at least 11 diseases, providing the public with reveal-

ing genetic information. Those who learn about genetic predispositions to disease may be disappointed to find that medicine is lagging behind, but those gaining confidence from learning about the absence of predispositions may find improved confidence about their future.

More than 12 million people have taken direct-to-consumer DNA tests, with almost 8 million of those tests occurring since 2016. Recent studies indicate that as much as 15 percent of the U.S. population has taken a genetic test.

While advances in medicine, pharmaceuticals, DNA testing, and improved longevity can positively influence our lives, they also pose a significant risk.

Protection Strategies

What if you could go back in time and buy Apple or Microsoft stock at issue? What if you could acquire an appreciating asset that you know will not be available in the future, and it could be

QUOTE:

GENOMICS MAY JUST BECOME THE GREATEST DISRUPTOR TO THE LIFE, DISABILITY, CRITICAL ILLNESS, AND LONG-TERM CARE INDUSTRIES—THE EQUIVALENT OF GLOBAL WARMING OR CYBERSECURITY RISKS IN THE PROPERTY/CASUALTY SPACE

a game-changer for your family?

Genomics is transforming medicine, and slowly but inevitably reshaping insurance too.

The rapidly advancing science is forcing the industry to navigate a multitude of actuarial, ethical, privacy, and even reputational concerns.

People who get a genetic test back are going to want to take action—those who get unfavorable information may choose to travel more, work less, or seek out medical treatments intended to guard against or slow the advancement of certain conditions indicated by the testing. People who gain confidence about their favorable futures may seek to shift careers, invest differently, commence savings, or make other plans intended to preserve their longevity. Either way, armed with this new information, they are going to seek to protect themselves and their families.

• Imagine a test result shows a predisposition toward Alzheimer’s, Parkinson’s, or Multiple Sclerosis. Who wouldn’t want to make sure they owned proper insurance like long-term care to ensure they have adequate cover for care later in life?

• Imagine that a test affirms longevity.

Wouldn’t those likely to live longer seek out annuities as a tool to assure they never run out of money?

• Imagine that a test indicates a shorter lifespan due to likely cancer, heart issues, or diabetes. Wouldn’t those predisposed to these conditions purchase life insurance products that preserve their insurability and assure legacies for their families?

Humans have never been as privy to their future, and with this new landscape comes even more unique opportunities for planning.

The Future of Insurance

To date, insurers have not been overly concerned with consumer DNA technology, given the relatively small segment of the population that has been tested. However, that seems to be rapidly changing as testing becomes more accessible, affordable (now priced from $200 to $1,500), and quick.

The fundamental business models for life, disability, critical illness, and long-term care insurers could be at stake, given the growing information, as more people who buy insurance products will seek out insurance without disclosing their predispositions to certain diseases.

Genomics just may become the greatest disruptor to the life, disability, critical illness, and long-term care industries—the equivalent of global warming or cybersecurity risks in the

property/casualty space.

A 2008 federal law prevents health insurers from seeking the results of genetic testing.

However, the Genetic Information Nondiscrimination Act does not bind life, disability, critical illness, and long-term-care insurers. Innovative insurance companies might not only request genetic testing, but also proactively offer it. They might say, “We’re going to give you insights into your health and let you act on them, but we’re not going to let it influence the underwriting process or cancel your policy if anything shows up.”

As all of this plays out, the opportunities for planning, with the products available to today’s professional, will assure that families are taken care of and assets are preserved, and those who obtain contracts that are non-cancellable and contain premium guarantees will look back at these products like they thought of buying Google or Apple stocks at IPO prices.

Like the old saying goes, “You don’t know what you got till it’s gone.” Do the planning today for the people and things you care most about, have “the conversation,” and perhaps you won’t have to worry about the future after all. end

CSA - Levy / SoCal IP

SoCal IP.indd 1

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10/24/17 11:49 AM

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INDUSTRY LEGAL

SPECIALTY CORPORATE LAW MERGERS & ACQUISITIONS

DISRUPTIVE TECH: TRENDS IN LEGAL SERVICES DELIVERY MARK LEVINSON Partner, Corporate Mergers & Acquisitions, Securities, Capital Markets Finance, Real Estate Thompson Coburn LLP Los Angeles, CA

Optimizing technology to better serve clients is a win-win CSA - Levinson

William Mark Levinson is a seasoned attorney primarily advising and guiding individual and corporate clients through a range of corporate, securities, real estate, and financing transactions.

Levinson was nominated by The M&A Advisor as an award finalist for a complex public company spinoff that was listed on the NYSE, and he was named to the Los Angeles Business Jour nal’s 2013 “Who’s Who in Real Estate Law.” Levinson is a trusted advisor, known for his effective negotiating approach, who routinely counsels financial institutions, real estate development companies, investment banks, entrepreneurs, and individuals. A graduate of Brandeis University and Yeshiva University’s Cardozo School of Law, Levinson resides in Calabasas, Calif., and is the proud husband of Carrie and father of Emily, Lauren, and Max.

PHONE 310/282.2520 EMAIL mlevinson@thompsoncoburn.com WEBSITE thompsoncoburn.com ADDRESS 2029 Century Park East, 19th Floor Los Angeles, CA 90067

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Technological and digital advances in the last decade have been dramatic. Years from now, historians may view this to be as momentous a time period as the Industrial Revolution. It’s an exciting time for many, but others feel anxious about the pace of change. There are winners and losers. Most, however, will benefit. But one thing is certain: New technologies are allowing us to create new opportunities and businesses, to gather big data, analyze issues, assess outcomes, and act faster and more efficiently than ever before. There is disruption abounding, and it has dramatic implications for the legal services community.

What are we, legal practitioners, doing to take advantage of these technological advances? Are we using the latest technology to better serve our clients? Are online legal document service providers or “virtual law firms” the future of legal service delivery? What are the implications for legal consumers substantively and qualitatively? What are the risks for retail legal service consumers who choose to digitally download legal forms and fi ll in the blanks, rather than retaining a traditional lawyer? And what about clients utilizing the more traditional

law firm model to help them navigate new laws, rules, regulations, and market developments?

Clients are demanding services be delivered more rapidly and cost effectively and they deserve to have the latest technological and digital advances to meet these important goals.

Technological innovations touch four key areas for lawyers: 1. Legal cost and process 2. Risk management 3. Legal and markets guidance 4. Accessibility Legal Cost

First, clients want more certainty in their legal costs—and efficiencies to reduce such costs.

This demand has led law firms to develop data to challenge and revamp the 100-year-old billable-hour tradition with new alternative billing models, such as fi xed, flat, blended, or capped fees. Studies have shown that, in corporate law departments, approximately 70% of fees paid to outside counsel were based on billing arrangements other than standard hourly rates or billable hours.

QUOTE:

STUDIES HAVE SHOWN THAT, IN CORPORATE LAW DEPARTMENTS, APPROXIMATELY 70% OF FEES PAID TO OUTSIDE COUNSEL WERE BASED ON BILLING ARRANGEMENTS OTHER THAN STANDARD HOURLY RATES OR BILLABLE HOURS Second, clients want more efficiency in the billing process and more frequently are asking for weekly legal-spending updates. Legal professionals are using artificial intelligence (AI) to examine timekeeper entries to find duplication of effort and ensure that work was authorized.

Technologies are assembling financial data to enable a client to know, in real time, project costs and whether time invested was authorized. Also, many law firms are implementing shorter billing cycles with e-billing technology to turn time “inventory” more rapidly. Law firms have discovered that circulating invoices on tighter timelines means greater revenues that translate into millions of dollars annually.

A win-win for both lawyer and client.

Risk Management

Lawyers are increasingly making use of technology and AI to better identify areas of legal exposure and evaluate financial risk. While it is unlikely that a computer can replace a lawyer’s ability to apply judgment to a set of facts, AI can develop factual information more rapidly and aid a lawyer’s evaluation of risks and alternatives.

CSA - Levinson Legal and Market Guidance

In today’s digital world, clients need and want to be able to access information from anywhere in the world 24/7. Many law firms have developed dedicated “knowledge management” departments devoted to utilizing the latest technologies to bring information and value to clients: utilizing AI to perform faster and more economical due diligence; specialized data rooms that enable transaction participants anywhere in the world to access information and documents at any time; and daily e-newspapers, which provide clients with a tailored review of legal and market developments affecting their particular business. Knowing market and legal trends in real time is critical and of great strategic and tactical value to clients by addressing issues such as intellectual property, finance, real estate, estate planning, and mergers and acquisitions.

For retail legal consumers, one cautionary consideration should not be overlooked when using technology: Many retail legal consumers use Google for substantive legal research and form documents. Online options empower the retail legal consumer to address their own legal matters. While this approach may seem less costly, don’t forget the adage “A lawyer who represents himself has a fool for a client.”

While online research is a less costly approach up front, in the long run, mistakes or omissions

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can be a trap for the unwary and result in losses far greater than the cost of consulting a legal professional.

Accessibility

Law has gone mobile. Lawyers now have access to their law firm’s database on their smart devices. Client documents and information from other sources is available through secure, web-based platforms that can be accessed anywhere, anytime. Attorneys can serve their clients whether in the office or out of town. Information is always at their fingertips to serve client needs.

Technology Is a Powerful Legal Tool

Technological and digital advances give legal practitioners important tools to better serve their clients; achieve desired results efficiently and cost-effectively; and have remote access to important databases and thus the ability to serve client needs on a moment’s notice.

As legal service providers, we must not only utilize advanced technologies, we must continue to be engines of disruption ourselves, always thinking about how the latest technological resources can be used to develop new skill sets and automate routine processes, how we can use AI and big data to understand and analyze information more efficiently and cost-effectively, and how we can use digital and technological advances to educate, inform, and serve our clients in real time. end

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INDUSTRY LEGAL

SPECIALTY INTELLECTUAL PROPERTY

THE ROLE OF COPYING IN INNOVATION STEVEN C. SEREBOFF Partner SoCal IP Law Group LLP Westlake Village, CA

Should the U.S. complain about forced intellectual property transfers in China?

CSA - Sereboff When business, technology, and IP law intersect, Steve Sereboff is an expert, relied on by multibillion-dollar multinationals, medium-sized public, private companies, and growth-oriented startups.

His practice focuses on how business can best leverage patents, trademarks, trade secrets, and copyrights. Steve and his team help clients manage IP risks, litigate, and resolve IP disputes, secure IP rights throughout the world, and get IP deals done. Steve earned a BSEE from the University of Maryland and a law degree from Boston University.

PHONE 805/230.1350 EMAIL ssereboff@socalip.com WEBSITE socalip.com ADDRESS 310 N. Westlake Blvd. Suite 120 Westlake Village, CA 91362

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President Trump and his trade negotiators argue that China has unfairly forced U.S. companies to share their most valuable technology with Chinese companies. They also allege that the Chinese government employs espionage to steal valuable technology from U.S. companies.

Some people explain this as cultural, arguing that copying is central to Chinese culture.

Against a broader background, a more balanced view emerges. In short, when a country’s economic interests favor copying, IP rights are not well protected, but when a country’s economic interests favor protection of IP rights, the government will move to support its domestic economic interests. The broader background covers both geography and history.

Consider, for example, the history of protection of intellectual property rights (IPR) in the United States.

When the U.S. declared its independence from Great Britain, it had a primarily agrarian economy. The Founding Fathers, all leading citizens, made their money as lawyers, spec-

ulators in land or stock, trading, or farming.

None was an industrialist. Benjamin Franklin, famous as an inventor, made his fortune in the newspaper business and publishing. His most famous publication, Poor Richard’s Almanack, was a highly popular resource for farmers and households. In that kind of environment, there was little need for IPR protection. Though some people, like Franklin and Thomas Jefferson, innovated, most new technology came from outside the country. That is, the U.S. was a net importer of innovation.

The U.S. eventually became an industrial economy, and today, an information economy.

After its War of Independence, the U.S. continued to be a net importer of innovation. During the 1800s, the country transitioned from an agrarian economy to an industrial economy.

In parallel with this slow shift from farming to manufacturing, the U.S. slowly strengthened its IP laws. Competition among domestic manufacturers drove innovation. Over time, the innovative domestic manufacturers sought

QUOTE:

DOMESTIC ECONOMIC INTERESTS, NOT COMPLAINTS BY FOREIGN GOVERNMENTS, ALMOST ALWAYS DRIVE CHANGES IN IP LAWS

and received government help in repelling com- has never provided much protection for drug petitors that copied their innovations. By the innovations. Prior to the 1990s, Brazil did not time of World War I, the U.S. economy was even allow patents on medications. With little solidly industrial, and its IP laws reflected this. domestic industry in pharmaceuticals in BraThe focus remained on protection of domestic zil, there was no benefit to IPR protection. The companies from other domestic companies, Brazilian government did not care that foreign but globalization eventually changed this, too. companies wanted patent protection. Today, After World War II, the U.S. adopted significant Brazil is reportedly the eighth largest pharmaenhancements to its patent laws, reflecting the ceutical market in terms of revenue. Despite need to further protect domestic companies the huge market size and international treaty obligations, drug innovations get little protecfrom other domestic companies.

Eventually, U.S. industry suffered severely tion in Brazil. This simply reflects the small from foreign competition, especially from Jap- size of Brazil’s pharmaceutical manufacturing anese electronics and auto manufacturers. The industry.

Turning back to China, one can readily see U.S. government stepped in to help. At the time, many Americans believed that the Japanese how it falls neatly into these historical models. were mere copyists, and that their Asian cul- Like the U.S., the Chinese economy transture promoted copying. The U.S. government, formed from agrarian to industrial. In parallel led by President Ronald Reagan, reacted to the with its breakneck pace of industrialization, demands of domestic companies by enacting Chinese IP laws have developed quickly—maysignificant enhancements to the patent laws. be quicker than anywhere else. Like elsewhere, These enhancements gave U.S. companies new the Chinese government has enhanced IPR protection because domestic companies have weapons to fend off the foreign competitors.

The Reagan-era IP laws helped many demanded it. At best, foreign companies are U.S. companies, most notably Texas Instru- secondary beneficiaries. Thus, Chinese techments. These companies used the U.S. courts nology companies like Huawei want protection and Super 301 actions before the Internation- from copying by domestic rivals such as ZTE; al Trade Commission to secure huge mone- they do not worry much about copying by Aptary transfers and injunctions against foreign ple. This also disproves the view that China has a culture of copying that will not change. The competitors.

Over time, Japanese manufacturers felt the culture of copying in the U.S. came to an end, pressure of competition, especially domestic as it did in Japan and elsewhere in Asia.

Domestic economic interests, not comcompetition, and matured into incredible innovators who also demanded domestic IPR plaints by foreign governments, almost always protection from their government. In more drive changes in IP laws. Perhaps the Trump recent years, Japanese companies have suffered Administration will succeed where prior addomestic market-share losses at the hands of ministrations have failed. This may mostly companies from South Korea, Taiwan, and reflect the maturation of Chinese industry, China. The Japanese government has reacted and may also arise from President Trump’s by studying and adopting some Reagan-era IP asymmetric approach to deal making. Time will tell. end law reforms.

Other historical examples abound. Consider India and its protection of pharmaceutical innovation. The Indian pharmaceutical manufacturing industry dates to the 1970s. At that time, for young Indian drug companies, generic drugs were their easiest path to market. Copying allowed the Indian companies to grow strong. By 2018, India supplied almost half of all generic drugs in the U.S. In time, though, competition and market-size limits led the Indian pharma companies to move up the value chain to development of proprietary drugs.

Inparallel with industry maturation from generic (i.e., copied) drugs to proprietary drugs, the Indian patent laws have been strengthened to protect the domestic pharma industry.

Contrast India’s story with Brazil’s. Brazil

CSA - Sereboff

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INDUSTRY LEGAL

SPECIALTY MERGERS & ACQUISITIONS

BUYING THE NEXT UNICORN

How Prudent Fiduciaries Negotiate Disruptive Investment Opportunities1 SANDER C. ZAGZEBSKI Partner Greenspoon Marder LLP Los Angeles, CA

CSA - Zegzebski

Sander Zagzebski is a corporate partner with Greenspoon Marder in Los Angeles, CA. Zagzebski has broad experience as a transactional corporate/securities lawyer and represents clients in mergers, acquisitions, dispositions, and other change-of-control transactions; joint ventures and strategic alliances; capital-raising transactions (offerings of debt and equity securities, including private equity investments and venture capital investments); restructurings and recapitalizations; structured finance transactions; private equity and venture capital fund formation and governance; and general corporate, partnership, and LLC matters.

Zagzebski has represented technology and new media companies, investment advisors, aerospace and defense companies, bank holding companies, manufacturing companies, real estate companies, entertainment companies, and consumer product companies in M&A, capital raising, and other strategic corporate transactions ranging in size from under $10M to in excess of $1B.

PHONE 310/880.4520 WEBSITE gmlaw.com EMAIL sander.zagzebski@gmlaw.com ADDRESS 1875 Century Park E #1850 Los Angeles, CA 90067

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C-SUITE ADVISORY

The popular term “disruptive innovation” appears to have first been coined by Harvard Professor Clayton M. Christensen in his technology research and later book The Innovator’s Dilemma, published in 1997. To be truly “disruptive,” an innovation must transform an industry or sector. In other words, disruptive innovation doesn’t merely make incremental improvements. Rather it changes the industry fundamentally by making at least exponential improvements or even by rendering the industry’s status quo wholly obsolete. The introduction of the personal computer in the late ‘70s and early ‘80s is referenced by Prof. Christensen as a classic example of disruption.

Seeking disruptive innovation is the focus of entire classes of professional investors, including the lion’s share of the traditional venture capital community, so few innovators will fail to label their technology or approach as “disruptive” if they can say it with a straight face.

Entire emerging industries, such as artificial intelligence (AI), distributed ledger/blockchain, legal cannabis and even shared transportation (those brightly colored bicycles and electronic scooters) have all at some point been referred to as disruptive by commentators, as have virtually all of the so-called “unicorns” (a phrase coined more recently by venture capitalist Aileen Lee and defined as private venture-backed growth companies with valuations in excess of $1 billion). To be sure, many more companies claim

disruption and unicorn potential than will actually achieve it, but convincing investors of it can result in a sky-high valuation and instant paper wealth, not to mention Silicon Valley street cred, for the founders.

Once a growth company reaches true unicorn status, it will often turn to a select group of major investors like SoftBank Group, large late-stage VC funds and sovereign wealth funds for financing. In the earlier days, however, the pre-unicorns will generally have to call on the usual suspects—high net-worth individuals, family offices and early stage VC/angel funds—for growth capital. If the Company is already generating buzz, it likely will be seeking a comparably high valuation for its latest funding round. So how should investors approach an exciting potentially disruptive opportunity?

First, don’t forget basic due diligence.

At the risk of being boring, it is always prudent to remember that investing isn’t gambling, and losses avoided are as valuable as realized gains.

Sophisticated investors, including the Walton family, Rupert Murdoch, Betsy DeVos, the Cox family, the Oppenheimer family, multi-billionaire Carlos Slim and several VCs, reportedly lost approximately $700 million in Theranos, the over-hyped biotech company valued at its peak at over $10 billion. Theranos’s young founder, Stanford dropout Elizabeth Holmes, was a media darling after Theranos signed

QUOTE:

IF YOUR PRIMARY ADVISORS ARE TRAINED ONLY IN FINANCE, THEY MAY NOT PAY ATTENTION TO THE LEGAL DETAILS ONCE THEY’VE AGREED ON PRICING AND VALUATION TERMS. THIS CAN BE A PRICEY MISTAKE, PARTICULARLY IF THE INVESTMENT OPPORTUNITY SEEMS PARTICULARLY EXCITING AND AS A RESULT THE VALUATION IS HIGH

a high-profile blood testing contract with Walgreens, and in 2015 she was named to Time Magazine’s Most Influential People list. In the same year she became the youngest person ever to win the Horatio Alger Award, among other accolades. Theranos also boasted a high-profile Board of Directors that included Henry Kissinger, George Shultz, Sam Nunn, Bill Frist, Gen. James Mattis, former Wells Fargo CEO William Kovacevich and famed trial lawyer David Boies. With all the excitement and attention, it was obviously easy for investors to succumb to enthusiasm too quickly.

Not all prospective investors fell for the Theranos story however. Bill Maris, then at Google Ventures, reportedly looked at Theranos and decided not to invest. “We looked at it a couple times, but there was so much hand-waving — like, ‘Look over here!’— that we couldn’t figure it out,” Maris said in an interview with Business Insider. “So, we just had someone from our life-science investment team go into Walgreens and take the test. And it wasn’t that difficult for anyone to determine that things may not be what they seem here.” Basic technical due diligence and the discipline not to get swept up in the hype probably saved Google Ventures a substantial sum.

of increased dilution to the founders and earlier stage investors.

The full ratchet anti-dilution provision is still unusual in comparison to the more typical weighted average approach, but it is becoming more common particularly in high value unicorn transactions (Box is another high profile IPO in which the full ratchet anti-dilution provision was triggered). There are also other elegant ways to give investors heightened protection, such as a blocking right in the case of a lower priced IPO, participating preferred shares, in which the investors receive both (as opposed to either of) their liquidation preference and their as-converted percentage on liquidation, and increased minority protections. These types of discussions are particularly important to consider if the founders have protections of their own such as super-voting stock.

to solve problems and to grow the business.

Fourth, you’re smarter than you look!

It can be easy to be intimidated, even subconsciously, by impressive founders, particularly if those founders have impressive technical, political or business backgrounds. Not only was Theranos’s founder being proclaimed by some as the next Steve Jobs, the company hired an impressive technical management team and recruited a Board of DC heavyweights. Bill Maris, however, still reportedly refused to invest without understanding how (or whether) the technology worked. His team’s insistence on validating the company’s claims from a technical perspective (in other words, how did the technology actually work and did it produce correct results?) uncovered the weakness in the company’s presentation.

In addition, the media hype surrounding some “disruptive” technologies or industries Third, remember that you’re investing in people, and the founders in particular. seems to provide air cover for business claims In evaluating an investment, it can be tempt- that otherwise would be met with a greater ing to get lost in the details of the financial degree of skepticism. For example, the disanalysis and the legal terms and conditions, tributed ledger/blockchain industry gave rise and to forget that the success or failure of an to some crypto token ICOs that in hindsight investment will in large part depend on the appear to have been at best problematic and at management team’s ability and motivation to worst fraudulent. In certain cases, the published deliver. Founders in particular are often critical disclosures relating to these deals should have components of the development of the product failed to pass the “smell test” of reasonably prufrom a technical perspective, not to mention dent investment professionals. Anecdotally, the the visionaries and the “heart and soul” of the legal cannabis sector also seems to have attractoperation. It is not unusual for savvy found- ed a fair number of individuals peddling farers of exciting companies to bargain for their fetched investment opportunities and schemes. own protections, usually in the form of all or As with investments in non-disruptive indussome combination of a minimum number of tries or technologies, if you don’t confidently guaranteed Board seats, super-voting stock understand how the company makes money or and employment agreements with severance how you make money from the investment, you provisions. Working through these issues can are well advised to learn more or pass on the be tricky, as often the founders’ motivation for opportunity. maintaining control is at least as emotional as it is economic, so a horse-trading approach can To conclude, truly disruptive innovation opens significant opportunities for investors be counter-productive.

While often tense, experienced investors to make outsized or asymmetrical returns. will generally find common ground with sav- That said, the hype surrounding disruption vy founders. After all, each needs the other to can often cause prudent investors to make make the deal successful. Investors will often mistakes. Balancing the excitement and enpermit a founder to maintain a high degree of thusiasm of disruption with caution, creative control, and perhaps even longer term control downside protections and an insistence on via super-voting shares, as long as the inves- understanding the business from a technical tors have appropriate Board representation, and financial point of view is the only prumeaningful minority protections in the form dent way to bet on the next big unicorn. end of veto rights over certain major decisions and some form of golden handcuffs (often vesting or re-vesting over some portion of the founders’ 1. This article is for information shares). In a well-crafted venture investment, purposes only and should not the investors and the founders have a balance of be construed as legal advice, investment advice or tax advice. power which motivates them to work together

CSA - Zegzebski

Second, don’t stop negotiating after agreeing on price and valuation.

If your favorite tool is a hammer, you only tend to look for the nails. Similarly if your primary advisors are trained only in finance, they may not pay attention to the legal details once they’ve agreed on pricing and valuation terms.

This can be a pricey mistake, particularly if the investment opportunity seems particularly exciting and as a result the valuation is high.

Consider the example of Square’s initial public offering and its prior venture capital round. Approximately a year prior to its IPO, Square issued shares of Series E Preferred Stock at $15.46 per share which resulted in an approximately $6 billion valuation. When Square filed to go public, however, it priced its shares significantly less than the $15.46 per share paid by its Series E investors. While this decreased valuation and resulting dilution would ordinarily cause heartburn, Square’s Series E investors were comparably unconcerned. After all, they had included a somewhat unusual “full ratchet” anti-dilution protection provision (rather than the more typical “weighted average” anti-dilution formula) in their investment documents which not only made them completely whole, it even guaranteed them a significant return in comparison to the IPO price, all at the expense

CSQ Q1 2019

91

C-Suite AdvisorsTM Directory ACCOUNTING

FINANCE

Trent Brown Deloitte & Touche LLP trbrown@deloitte.com

Adam Abramowitz Intrepid Investment Bankers aabramowitz@intrepidib.com

Howard Grobstein Principal Grobstein Teeple LLP hgrobstein@gtllp.com

Ed Bagdasarian Intrepid Investment Bankers ebagdasarian@intrepidib.com

Kris Kaufmann BDO USA, LLP kkaufmann@bdo.com T’Shaka Lee Deloitte & Touche LLP tshakalee@deloitte.com Scott M. Sachs, CPA CohnReznick, LLP scott.sachs@cohnreznick.com CONSULTING Majid Abai Concepts Rise, LLC majid.abai@conceptsrise.com Brian Barry Dale Carnegie brian_barry@dalecarnegie.com Adam Bohn INC Technologies adam@inctech.net James Harwood CoAdvantage james@totalhrmanagement.com Aramis Hernandez President INC Technologies 310/910.9044 aramis@inctech.net Kevin S. Parikh Avasant kevin.parikh@avasant.com Andy Popov Avasant andy.popov@avasant.com Randall Stone *māz randall.stone@emazexp.com e

Deborah Shames Eloqui dshames@eloqui.biz Vlad Vaiman California Lutheran University vvaiman@callutheran.com Edward C. Wilson-Smythe Avasant edward.wilson-smythe@avasant.com

Geoffrey R. Berlin, CFP® J.P. Morgan Private Bank geoffrey.r.berlin@jpmorgan.com Jonathan Bluth Intrepid Investment Bankers jbluth@intrepidib.com Claudia Bodan Commercial Bank of California cbodan@cbcal.com Robert Dalie Executive Director, Investments The Summa Group of Oppenheimer & Co. Inc. 310/446.7501 robert.dalie@opco.com Doug DeGroote DeGroote Financial Group doug@degrootefinancial.com Josh Fein Advice Period josh.fein@adviceperiod.com

C-SUITE ADVISORY

Mike Rosenberg Intrepid Investment Bankers mrosenberg@intrepidib.com Larry Schnaid UBS Financial Services larry.schnaid@ubs.com Rich A. Schuette Avalan LLC rich@avalanwealth.com

Lars Rathje Lockton Companies lrathje@lockton.com

Bruce Simon City National Rochdale, LLC bruce.simon@cnr.com

Danone Simpson Montage Insurance Solutions danone@montageinsurance.com

Brian Werdesheim Oppenheimer & Co. Inc. brian.werdesheim@opco.com

Gregory Stephens Tolman and Wiker Insurance Services gstephens@tolmanandwiker.com

Dave Wolinksy Palm Tree dwolinksy@palmtreeadvisors.com Jonathan Zucker Intrepid Investment Bankers jzucker@intrepidib.com

Michele L. Havens Northern Trust mlf3@ntrs.com

Alen N. Cohen, MD, FACS Southern California Sinus Institute

Alan Hopkins Manchester Financial alan@mfinvest.com

Ram Dandillaya, MD Cedars-Sinai Heart Institute

Pardis Nasseri Palm Tree pardis@palmtreeadvisors.com Marvin Padilla Intrepid Investment Bankers mpadilla@intrepidib.com Ashok Patel Commercial Bank of California apatel@cbcal.com

Cathy Kerhulas HUB International Insurance cathy.kerhulas@hubinternational. com

Nerre Shuriah, JD, LLM First Citizens Bank nerre.shuriah@firstcitizens.com

Gregory Albaugh, DO, FACS Coastal Vascular Center

Jeffrey R. Knakal Growth Partners jeff@growthpartners.net

Bryce Eddy Tolman & Wiker Insurance beddy@tolmanandwiker.com

Michael Schwartz Galerie Michael, Inc. art@galeriemichael.com

Jim Freedman Chairman & Managing Director Intrepid Investment Bankers jfreedman@intrepidib.com

Shahzad Khan Commercial Bank of California skhan@cbcal.com

Robert Di Paolo HUB International rob.dipaolo@hubinternational.com

Martin Levy, CLU/RHU President & Founder CorpStrat Inc. 818/377.7260 marty@corpstrat.com

CSA - Index

Jessop Fowler Merrill Corporation jessop.fowler@merrillcorp.com

Brandon Quartararo Intrepid Investment Bankers bquartararo@intrepidib.com

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Gary Rabishaw Intrepid Investment Bankers grabishaw@intrepidib.com

HEALTH & WELLNESS

Carol A. Polevoi, LMFT, CBS, CPC Counseling Resource Center carolpolevoi@gmail.com Brennan Spiegel, MD Cedars-Sinai Health System Amir Vokshoor, MD Providence St. John’s Health Center & Institute of Neuro Innovation INSURANCE Bradley A. Barros My National Family Office, Inc. bradley.barros@rodnunskylaw.com Danette Beck USI Insurance Services danette.beck@usi.com

Robyn Welch HUB International Insurance robyn.welch@hubinternational.com Scott Zimmerman CorpStrat Inc. scott@corpstrat.com LEGAL Jennifer Archie Latham & Watkins LLP jennifer.archie@lw.com Lawrence M. Braun Sheppard Mullin lbraun@sheppardmullin.com Joseph Calabrese Latham & Watkins LLP joseph.calabrese@lw.com Will Chuchawat Sheppard, Mullin, Richter & Hampton LLP wchuchawat@sheppardmullin.com Harry Galstian Direct Tax Relief harry@directtaxrelief.com Jim Gotcher Gotcher Law jkg@gotcherlaw.com Danielle Gotcher Gotcher Law dhg@gotcherlaw.com Marina Lang SoCal IP Law Group LLP mlang@socalip.com

William Mark Levinson Partner, Corporate Mergers & Acquisitions, Securities, Capital Markets Finance, Real Estate Thompson Coburn LLP 310/282.2520 mlevinson@thompsoncoburn.com

W. Alex Voxman Latham & Watkins LLP alex.voxman@lw.com Sander C. Zagzebski Partner Greenspoon Marder LLP 323/880.4520 sander.zagzebski@gmlaw.com

Matthew Zehner Founder & CEO Zehner 310/765.1600 mzehner@zehnergroup.com REAL ESTATE

Stacy D. Phillips Certified Family Law Specialist Partner Blank Rome LLP 424/239.3400 sdpdissoqueen@blankrome.com

MARKETING

Winton Berci Mazirow Commercial, Inc. wberci@tenantadvisory.com

Michael Abraham DefinityFirst michael.abraham@definityfirst.com

Todd Doney CBRE todd.doney@cbre.com

Peter K. Rosen Latham & Watkins LLP peter.rosen@lw.com

Erik Huberman Hawke Media erik@hawkemedia.com

Jilliene Helman RealtyMogul.com jilliene@realtymogul.com

Russell F. Sauer, Jr. Latham & Watkins LLP russell.sauer@lw.com

Charlie Ittner Managing Partner Darien Group 310/247.1050 charlie@dariengroup.com

Jason Hughes Hughes Marino jason@hughesmarino.com

Lisbeth Savill Latham & Watkins LLP lisbeth.savill@lw.com Steven C. Sereboff Partner SoCal IP Law Group LLP ssereboff@socalip.com Bob Steinberg Latham & Watkins LLP bob.steinberg@lw.com Zachary M. Turke Sheppard Mullin zturke@sheppardmullin.com

Mike Schaffer Echo-Factory michael@echo-factory.com Jeffrey Stewart Definity First jeffrey.stewart@definityfirst.com Michael Terpin SocialRadius michael@socialradius.com

Michele Turturici Equity Advisors mturturici@eahomesales.com

Shay Hughes President & COO Hughes Marino 310/277.3211 213/689.3211 shay@hughesmarino.com Tucker Hughes Hughes Marino tucker@hughesmarino.com

CSA - Index

Robert B. Yallen The InterMedia Advertising ryallen@intermedia-advertising.com

Jack Turturici, Jr. Equity Advisors jturturici@eahomesales.com

Brian A. Sidman Redwood Land Holdings brian@basholdings.com

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96 Exhibits & Performances 98 Proprietors’ Profile 100 Fine Dining 102 Required Reading & Listening

Culture & Taste

Part 4

Culture & Taste - TOC

From the west coast to the east, the artistic mind blossoms this spring, with MOCA and the AD Art Show bringing visitors the warm breath that’s unique in the urban cities (p. 96)

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95

OF NOTE

Exhibits & Performances

Los Angeles

Some of the most alluring art shows and museum exhibits happening on each coast

New York

40 FOR LA April 14–September 16, 2019

AROUND TOWN LA Other exhibits of note this season

AD ART SHOW May 1–4, 2019

AROUND TOWN NYC Other exhibits of note this season

Before the Broad, before the Disney Concert Hall, before gentrification, there was MOCA. Come view the 40-year history of the Grand Avenue pioneer with 40 for LA, a landmark exhibition that grants visitors a behind-thescenes look at the trailblazing museum’s remarkable history.

What started as an idea during a political fundraising event in 1979 was a reality by 1983, with its official opening. By 1990, the museum had amassed an incomparable contemporary art collection with works from Franz Kline, Robert Rauschenberg, Mark Rothko, Jackson Pollock, Willem de Kooning, and many more. The expansive show pays tribute to its past, showcasing multimedia archival works from the museum’s vault and also gives glimpses into how Japanese architect Arata Isozaki— who won the 2019 Pritzker Architecture Prize—constructed the museum, with its striking red sandstone façade and glass pyramid skylights. Limitededition objects as well as pieces from the museum’s expansive permanent collection are also on view at what is still the city’s only museum devoted exclusively to contemporary art. moca.org

The Bauhaus at 100: Modern Legacies Through May 5, 2019 LACMA

MvVo ART, creator of AD ART SHOW, is turning the streets of New York’s most art-centric neighborhoods into a revolutionary digital art show, featuring emerging artists from the advertising world during New York’s arts calendar highlight, Frieze Week, in partnership with NBC Universal. The AD ART SHOW celebrates art created by artists currently working in advertising, or with roots in the advertising, design, and commercial arts industries, as they follow in the footsteps of Warhol, Magritte, Haring, Dali, and many other noted artists who contributed to advertising during their careers.

If viewers like what they see, they can view the MvVO ART e-gallery on Artsy, where they will be able to view and purchase the works, a move that founder and CEO of MvVO Art Maria van Vlodrop says is the next step in the ever-changing contemporary art scene. mvvoart.com

Frida Kahlo: Appearances Can Be Deceiving Through May 12, 2019 Brooklyn Museum

Culture & Taste - Exhibits

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CULTURE & TASTE

Matthew Porter: Skyline Vista Through May 11, 2019 M+B Fine Art

Dirty Protest: Selections from the Hammer Contemporary Collection Through May 19, 2019 The Hammer Museum Palmyra: Loss and Remembrance Through May 27, 2019 Getty Villa Contact High: A Visual History of Hip-Hop Through August 18, 2019 Annenberg Space for Photography Soul of a Nation: Art in the Age of Black Power 1963–1983 Through September 1, 2019 The Broad

Jean-Michel Basquiat Through May 15, 2019 The Brant Foundation Lucian Freud: Monumental Through May 24, 2019 Acquavella Galleries Jeff Wall April 30 through June 22, 2019 Gagosian West 21st Street Josh Smith: Emo Jungle April 25 through June 15, 2019 David Zwirner New Order: Art and Technology in the Twenty-First Century Through June 15, 2019 MOMA

Boys & Girls Clubs

PROPRIETORS’ PROFILE

Coming in Hot

By Dora Dalton

Ori Menashe Bavel/Bestia Los Angeles

Culture & Taste - Proprietors LA

Top Chef winner and Detroit native Mei Lin opened Nightshade in January 2019 (launched with partners Francis Miranda and Cyrus Batchan of No.8.), joining the growing ranks of intriguing restaurants in the Arts District.

It’s an apt location since her fresh, innovative, and very now dishes are beautifully plated works of art, with flavors that lend an Asian vibe combined with a farmer’s market flair. (Her lasagna with pork ragu, tofu cream, and prickly ash is already attracting acclaim.)

Lin got an early start in the food business, working in her family’s Chinese restaurants. After a minor teenage rebellion away from the business, she trained in kitchens from Spago in Las Vegas to Michael Voltaggio’s ink in L.A. and staged in L’aterlier Robuchon, a two-Michelin-star restaurant in Paris. Following the family tradition, she now runs her own special spot, and she’s truly making Nightshade her own. nightshadela.com 98

CULTURE & TASTE

Jennifer Feltham Sonoratown Los Angeles

Los Angeles is a taco-saturated town, but there’s always room for more, especially when they’re made with the care and craft— and warm welcome—that Jennifer Feltham and Sonoratown bring to each one. Her airy, handmade, award-winning tortillas (she says they’re more like dumplings than the typically stodgy f lour tortillas we’re used to) use a carefully chosen flour from Mexico, topped with carne asada cooked over a mesquite wood fire. Sonoratown, which she owns with her boyfriend, Teodoro DiazRodriguez Jr., opened in 2016 with the name of the community of Mexican immigrants that settled in Los Angeles in the 19th century (now L.A.’s Chinatown). The taqueria’s creations are based on the ones Feltham tasted in Sonora, while the tiny (but recently expanded) restaurant builds on 25 years of combined experience in food service. sonoratownla.com

Photo Credit: Laura Murray, Jenny Zheng

Mei Lin Nightshade Los Angeles

Nightshade’s neighbor in the Arts District, Bavel, was inspired by chef and co-owner Ori Menashe’s Moroccan, Turkish, Georgian, and Israeli roots, and the menu will take you on a culinary journey. The expected Middle Eastern standards like shwarma, hummus, and pita, were painstakingly made new with Menashe’s deft chef ’s touch, extensive experimentation, and thoughtfully import-

ed ingredients. Bavel—which Menashe opened in 2018 with his wife and co-owner, Genevieve Gergis—joins the couple’s previous outing, Bestia, located less than a mile away. Like that acclaimed Italian bistro, Bavel is a family affair in more ways than one: A from-scratch sensibility and a sense of community means you’ll feel at home at either restaurant, and will probably want to be repeat customers at both. bestiala.com

Simone Tong Little Tong Noodle Shop New York

These NextGen chefs all offer a fresh take on contemporary cuisine rooted in classic styles and varied cultures

Trigg Brown Win Son New York Southern-born Trigg Brown may be an unlikely proprietor of a Taiwanese restaurant, but in Brooklyn, juxtapositions—and quality food—are embraced. Like many English lit majors, Brown needed a side hustle while attending the University of Virginia, so he worked in the kitchen at the nearby Keswick Hall and Golf Club, where he met chef Pei Jen Chang, who became his mentor and taught him the techniques and nuances of Japanese, Chinese, and Taiwanese cuisines.

Throughout her youth, Simone Tong traveled the world, including childhood moves around Asia and Australia, plus college in North Carolina—but watching TV one day in her birthplace of Chengdu, China, she found true inspiration. She came across a program featuring renowned Chef Wylie Dufresne and was inspired by his approach to food. Using money she earned playing online poker, Tong put herself through New York’s Institute of Culinary Education, then managed to land an externship at Dufresne’s wd~50.

After years in others’ kitchens, in 2017, she took the leap to open her own spot (with restaurateur Simon Xi)—and return to her culinary roots with Little Tong Noodle Shop in the East Village.

It was an immediate success and a second location in Midtown followed in 2018. Both outposts focus on variations of the Yunnan Province’s mixian rice noodle in a variety of dishes, so ramen and pho lovers can mix it up. This year, Tong received a StarChefs Rising Stars Award and will open yet another restaurant, this one the higher-end Silver Apricot in the West Village, to take us on even more eating adventures. littletong.com

That training, and help from his Taiwanese-American business partner Josh Ku (shown above and below), allowed him to open Win Son in 2017. The East Williamsburg restaurant showcases a constantly evolving take on Taiwanese cuisine, but always with traditional f lavors and locally sourced ingredients. Brown also incorporates inspiration from his other previous gigs, working for chefs like Tom Colicchio and Stephen Starr, and sees Win Son as an opportunity to both experiment with the multicultural Taiwanese cuisine and educate customers on its unique flavors. winsonbrooklyn.com

Culture & Taste - Proprietors NY

Leah Cohen Pig & Khao New York Raised by a Filipino mother and Romanian-Jewish father, Leah Cohen had rich cultural and culinary exposure from an early age. As an adult, she trained at the Culinary Institute of America and gained formal kitchen experience in New York (including Eleven Madison Park), at the Michelin-starred La Madia in Licata, Italy, and at restaurants in Hong Kong, Thailand, and Cambodia before opening her own restaurant, Pig & Khao, on New York’s Lower East Side in 2012. There she serves Asian street CSQ Q1 2019

food with an elegant touch against a backdrop of brightly colored decor and vibrant sounds of hip-hop and reggae. Featured on Top Chef and winner of a 2013 StarChefs Rising Star Award, Cohen has the magnetism of a movie star, but her food—Malaysian fried chicken with pineapple chutney, baby octopus paksiw with black vinegar butter, and filipino chocolate rice pudding with crispy bacon bits— takes the spotlight. pigandkhao.com

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FINE DINING Los Angeles

By Brittany Fuisz

Sushi Note Sherman Oaks

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While many of L.A.’s fine sushi restaurants fail to combine a compelling atmosphere with fabulous food, Sushi Note excels at both— with an impressive wine list to boot. The intimate, 30-seat venue on Ventura Boulevard in Sherman Oaks offers a modern setting to enjoy sushi made from freshly imported Japanese fish alongside notable wines from across the globe that are carefully chosen to pair with the delicate flavors of

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Japanese cuisine. This sushi/wine bar collaboration by David Gibbs of Augustine and Andy Paxson of Simple Things gives you the best of both worlds. Sit at the bar and enjoy the show as Chef Kiminobu Saito prepares exquisite cuts of fish such as bluefin toro, scallop, as well as other exotic cuts that you will not find elsewhere.

Choose from set samplers in a range of sizes or order à la carte.

Pair your food with wine from the list, or let the experts surprise you. sushinotela.com

Culture & Taste - Fine Dining LA

Italian meets Japanese at this new West Hollywood eatery from Chef Keiichiro Kurobe, previously of Hinoki & The Bird. A large patio leads to an intimate dining room with a cocktail bar and a window into the kitchen. Kurobe beautifully blends the two cultures and divides the menu into three main categories: sea, land, and meat. Start with the yellowtail tuna namerou that comes with avocado, pickled wasabi, quail yolk, trout roe, and a large rice chicharron. Hamachi bolognese is a must: a thick al dente homemade casarecce pasta topped with shiso, grana padano, and ground hamachi that is shockingly reminiscent of beef in the best way.

T.K.G. arancini is a perfect way to experience the playful side of the menu, filled with an egg yolk and served with an umami soy. Specials are on rotation but a bonein porterhouse is big enough for a crowd and incredibly rich and tender. Finish with the Hisho caramel miso budino, which is the perfect combination of texture and flavor with toasted hazelnuts and chocolate pearls. blackshipla.com 100

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FINE DINING New York

By Norah Lawlor

MAMO Restaurant Soho Soho’s MAMO Restaurant, head­ ed by restaurateur Mike “Mamo” Mammoliti and Executive Chef Salvatore Marcello, is one of New York’s leading Italian restaurants, combining authentic cuisine, a chic space, and a hip clientele.

Standout menu items include romanesco arrosto salsa caesar, e parmigiano, a roasted half ro­

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manesco served with a creamy homemade caesar. Particularly known for their pastas, MAMO’s hearty dishes include the mac­ cheroncini al ferretto (fresh Cal­ abrian­style pasta with butter, sage, lemon, and parmesan) and ravioli al tartufo (delicate ravioli with fresh truffle). Toast MAMO’s excellent food by choosing from an extensive list of French and Italian wines. VIP patrons include the Jonas brothers, Rihanna, Be­ yoncé, and Jay­Z. mamonyc.com

Culture & Taste - Fine Dining LA

1. Arancini deep fried with bread crumbs in a basket of spring green is reminiscent of a bird’s nest at Blackship

Frenchette Tribeca

2. Chef Keiichiro Kurobe of Blackship, formerly of Hinoki & the Bird 3. Neatly prepared live Octopus in a special sauce at Sushi Note 4. Exquisite cuts of fresh fish are just one of the highlights at Sushi Note 5. The elegant vibe at Sushi Note, which combines some of the freshest fish with modern ambiance and a fantastic wine list 6. MAMO Restaurant offers an atmosphere soaked in moody light and Italian affection 7. Frenchette recalls vintage Paris 7 CSQ Q1 2019

The charming Frenchette, a Tri­ beca restaurant created by Lee Hanson and Riad Nasr—former­ ly top chefs for legendary spots including Balthazar, Minetta Tavern, Pastis, and Schiller’s—is a modernist “neo­bistro” offering modern French cuisine. It was a hit as soon as the doors opened, and was recently nominated for a James Beard Award for Best New Restaurant.

Start with one of the delight­ ful specialty cocktails, such as Night Moves, combining bourbon with earthy flavors including black walnut. For an appetizer go full French with the brouillard: soft scrambled eggs with escargot and garlic butter. Entrée dishes of note include the simple yet well­exe­ cuted roast chicken, which comes with a potato puree accentuated with maitake mushrooms. frenchettenyc.com 101

REQUIRED READING & LISTENING

A selection of books and podcasts that explore the many sides of tech: dark and light, troubling and inspirational, frightening and fascinating

Innovative Insights

By Dora Dalton

AI Superpowers: China, Silicon Valley, and the New World Order Kai-Fu Lee

Bad Blood: Secrets and Lies in a Silicon Valley Startup Jim Carreyrou

The Impossible Climb: Alex Honnold, El Capitan, and the Climbing Life Mark Synnott

Houghton Mifflin Harcourt 272 pages

Knopf 352 pages

Dutton 416 pages

American Innovations Host Steven Johnson

Big ideas. Leaps of faith. Happy accidents. Best­selling author Steven Johnson explores how technology has transformed our lives and our world—and the of­ ten surprising ways these innova­ tions came about. wondery.com/ shows/american­innovations

Culture & Taste - Required Reading PLOT Lee—a former Silicon Valley AI technologist, head of Google China, and now venture capital­ ist—has studied American and Chinese tech up­close. In AI Superpowers, he shares predictions on how AI world dominance will affect blue­collar and white­col­ lar jobs, the resulting effects on global economies, and the many ways that China and the U.S. will be competing against and com­ plementing one another as AI continues its rise.

MEAT We may not all have robots in our homes or flying cars, but AI has slowly crept into our lives (just ask Alexa), and Lee argues that AI is set to grow exponen­ tially.

TWIST As with new technologies throughout history, humans will inevitably adapt to AI. Lee offers hope for the promising positives of our interactions with AI.

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PLOT Take one brilliantly dis­ ruptive idea and one farsight­ ed young entrepreneur, com­ bine with $400M in capital and a board stacked with former world leaders, and what could go wrong? In the case of Ther­ anos, just about ever y thing.

MEAT Elizabeth Holmes want­ e d to diagno s e hundre ds of disorders using just one mi­ crodrop of blood—and claimed she had the technology to do it. After years of delays, it slow­ ly becomes clear that Holm­ es’ promises won’t be fulfilled.

TWIST Spoilers have abounded in headlines for the past two years, but Holmes’ unabashed confi­ dence and unapologetic hubris throughout this saga may be the biggest surprise of all.

PLOT The greatest tech on Earth may still be the human body, brain, and heart. Following an Oscar win for Free Solo—the doc­ umentary about Alex Honnold’s stunning climb up the sheer face of Yosemite’s El Capitan without ropes—The Impossible Climb takes a deeper dive into the story of this inspiring human feat that pushed one man’s mental and physical capabilities to their limit.

MEAT With adventure journal­ ist Synnott, we take a winding path from Yosemite’s first famed rock climbers, through his own globetrotting adventures (many of them vertical—he’s a climb­ er himself), to the years that he shadowed Honnold’s preparation for the acclaimed 2017 ascent.

TWIST Synnott makes the case that any of us can achieve feats that initially seem impossible if we tirelessly apply our will and face our fears. It’s all about living life without a net.

Note to Self Host Manoush Zomorodi How do we hold on to our huma­ nity in a technology­drenched world? Manoush Zomorodi gui­ des listeners through a digital landscape that is simultaneously entertaining and existential. wnycstudios.org/shows/note­ toself

104 CSQ Visionaries Awards in Philanthropy, Art & Culture 108 CSQ’s C-Suite Advisors Happy Hour 109 Frieze LA 110 The Montgomery Summit

The Network

Part 5

The Network - Cover

The CSQ Visionaries Awards in Philanthropy, Art & Culture (page 104) were held at Christie’s New York.

CSQ Q1 2019

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VISIONARIES SERIES

CSQ VISIONARIES AWARDS IN PHILANTHROPY, ART, & CULTURE February 5, 2019 Christie’s New York New York, NY

HOST Christie’s New York ACTIVATION CORE: club MEDIA Loeb.nyc BRAND PARTNERS Carbonadi Chateau Peyfaures Revel Spirits

The CSQ Visionaries Awards, held in conjunction with the release of its highly anticipated bicoastal Philanthropy, Art, & Culture issue, included a spotlight on its honorees, visionary men and women who are elevating cultural, economic, and civic ecosystems through exceptional giving and work. The event was hosted at Christie’s New York with the special activation of CORE: club.

The Network - Visionaries

Tentpole awards to Los Angeles Visionary of the Year, philanthropist and inventor Dr. Gary K. Michelson, and New York Visionary of the Year Laurie M. Tisch who was introduced by a brilliant speech of Russell Granet, Acting President at Lincoln Center (NY).

Other honorees were, Nancy Aossey, President & CEO of International Medical Corps, Lawrence B. Benenson, Partner at Benenson Capital Partners, Angella Nazarian, Co-founder of Visionary Women, Dr. Rajiv Shah, President of The Rockefeller Foundation, Ahmass Fakahany & Michael White, Cofounders of Altamarea Group.

And who better than Michael Loeb, serial entrepreneur and President & CEO of the start up incubator, Loeb Enterprises to introduce the 2018/19 NextGens in Philanthropy, Art, & Culture.

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1 Ahmass Fakahany of Altamarea Group 2 Invited guests enjoying the pre-party 3 Laurie M. Tisch and Russell Granet 4 Michael Loeb introducing the NextGens 5 Michael Loeb, Mike Islam, Katie Loeb 6 Matthew Swift, Esther Y. Kang 7 Lawrence Benenson, Simon Ziff 8 Eric and Arsha Clement

CSQ Q1 2019

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1 The crowd 2 Avila Tasting with Revel 3 Dr. Gary K. Michelson and David Wurth 4 Christine Heenan of The Rockefeller Foundation 5 Lawrence Benenson and Erika Payne 6 Wine Tasting with Chateaus Peyfaures 7 Nicole Young, David Wurth, Nancy Aossey 8 Laurie M. Tisch holding her Carbonadi inscribed bottle with Jan Rothschild

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THE NETWORK

VISIONARIES SERIES

SPONSORS AND PARTNERS The Center of Arts Education Clay Lacy Aviation Inspirato ISAIA The White House Historical Association 1

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1 Alya and Dr. Gary K. Michelson 2 ISAIA Silent Auction Donation 3 Angella Nazarian and Shelley Reid for Visionary Women 4 Erica Payne for Patriotic Millionaires 5 B. Bonin Bough, Sofia Laurell 6 Beth Shapiro for Citymeals

CSQ Q1 2019

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PHOTOGRAPHY Alphonse Telymonde EVENT CONTACT events@csq.com

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CSQ’S C-SUITE ADVISORS™ HAPPY HOUR March 21, 2019 ISAIA Beverly Hills

4 Mission Connecting dozens of our C-Suite Advisors Elite and Executive members over cocktails and other d’evrus, hosted by CSQ partner ISAIA, members partook in high level networking, dealmaking, but most of all connected on personal interests forging real relationships.

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Event Highlights A special occasion capturing an Italian essence with Neapolitan spirit flowing.

Campari sodas, Negroni’s and appropriate Amalfi coast bites were featured.

Signature Sponsors ISAIA

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PHOTOGRAPHY Robert Bramley, CSQ C-SUITE ADVISORS MEMBERSHIP DIRECTOR Robert Kenney robert@csq.com EVENT CONTACT Gioia Giacomelli gioia@csq.com

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THE NETWORK

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1 ISAIA Lookbook & CSQ Magazine 2 Jim Freedman, Lawrence M. Braun, Robert Dalie , David Wurth 3 ISAIA Beverly Hills 4 Dr. Ram Dandillaya, Dr. David Ng 5 Dr Ram Dandillaya, Bryce W. Eddy, Geoffrey R. Berlin 6 Bryce W. Eddy, Geoffrey R. Berlin, Tom Alexander, Duke Hagenburger 7 Geoffrey R. Berlin. Bryce W. Eddy

FRIEZE LOS ANGELES 2019 February 15–17, 2019 Paramount Pictures Studios Los Angeles, CA Mission The 16-year-old art fair that began in London and expanded to New York finally debuted in Los Angeles with sold-out admission of more than 30,000 attendees, cementing the entertainment capital’s pivotal role in the international art community.

Event Highlights More than 70 contemporary art galleries from around the globe showcased an array of works.

Saleshighlights include three works

by Wayne Thiebaud at the Acquavella Galleries priced between $700K and $4M; six pieces by James Turrell, priced at $425K through Kayne Griffin Corcoran; and soldout success for 303 Gallery with its Doug Aitken solo show.

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Notable Guests Ricard Akagawa, art collector

The Network - Frieze LA

Willow Bay, dean of the USC Annenberg School for Communication and Journalism

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Maria Bell, novelist and TV writer and producer Klaus Biesenbach, director of the Museum of Contemporary Art, Los Angeles Adrien Brody, actor James Corden, actor and TV host Leonardo DiCaprio, actor Eric Garcetti, Los Angeles mayor and former CSQ Visionary of the Year

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Alex Gartenfeld, artistic director of the Institute of Contemporary Art, Miami Thelma Golden, director and chief curator of The Studio Museum, Harlem Mark Ridley-Thomas, Los Angeles County supervisor Laurie Tisch, president of the Laurie M. Tisch Illumination Fund and 2019 CSQ Visionary of the Year

PHOTOGRAPHY Mark Blower/Frieze

CSQ Q1 2019

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1 Lisson Gallery 2 Barbara Kruger, Frieze Projects 3 303 Gallery 4 Trulee Hall, Frieze Projects 5 Frieze Los Angeles 2019 6 Mendes Wood DM 7 Marian Goodman Gallery 8 Frieze, the backlot

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THE MONTGOMERY SUMMIT March 6 & 7, 2019 Fairmont Miramar Hotel & Bungalows Santa Monica, CA Mission The Montgomery Summit is the premier private technology investment event that attracts an invitation-only global community of over 1,000 senior-level investors, entrepreneurs, and leading technology executives annually.

Event Highlights The Summit features presentations from the CEOs of 140 carefully vetted private technology companies, internationally prominent keynotes and panelists, thousands of private meetings, and a program highlighting successful female entrepreneurs and investors.

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Notable Speakers Adena Friedman, President and CEO, Nasdaq Carmine Di Sibio, Global Chairman and CEO-elect, EY Dan Schulman, President and CEO, PayPal Dmitri Alperovitch, Co-Founder and CTO, CrowdStrike Hilary Schneider, CEO, Wag!

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John Chambers, Founder and CEO, JC2 Ventures Kate Mitchell, Co-Founder and Partner, Scale Venture Partners Martin Schroeter, SVP IBM Global Markets, IBM Signature Sponsors Macquarie, Accenture, DCS Advisory, EY, March Capital Partners, Dell, Carta, Nasdaq, Nasdaq Private Market, Vista Equity Partners PHOTOGRAPHY Jake Caumeran Photography EVENT CONTACT Shannon Irani Conference Director (310) 460 7914 sirani@montgomerysummit.com

1 Keith Strier, Amir Husain, Priya Vijayarajendran, Joshua Lachter, Quentin Hardy 2 Deb Kilpatrick, Liz Maida, Sarah Nahm, Niloo Howe 3 Thomas M. Siebel 4 Josh McClung, Nicholas Green, Matthew Higgins, Nicholas Stone 5 Carmine Di Sibio and John Chambers 6 Hilary Schneider and Kate Mitchell 7 Jamie Montgomery interviews Dmitri Alperovitch 8 Attendees gather in “The Monty Tent” 9 Michael Milken interviews Adena Friedman

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THE NETWORK

HOW IS YOUR FIRM’S TALENT DIFFERENT? MEMBERSHIP 2.0 = DIGITAL REPUTATION + PUBLISHED THOUGHT LEADERSHIP

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RETENTION Offer a premium incentive to top producers and customer facing partners by giving them the reputation they deserve, online

Contact us to start the application process today | advisors@csq.com | CSQ.com/application

C-SUITE QUOTED 58

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Whenever I couldn’t do something I wanted to do, I figured out a way to create it. That’s how I started taking on leadership roles.

If you don’t have great stories, it’s just not going to work. Our products require a combination of storytelling and technology.

We believe our e-commerce marketplace model can be used to solve the cost crisis across many areas of healthcare.

Payal Kadakia Co-founder, ClassPass

Chris DeWolfe Co-founder & CEO, Jam City

Geoffrey Chaiken Founder, Blink Health

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I started the company with $30,000 of my own savings and still own 100% of it today.

LA has a really great storytelling DNA and a lot of what we are as a brand and as a company is about the storytelling around our products and our experiences. That drives a lot of what we do.

Sometimes I know so little about a subject, or traditional management, that I’m able to try things that others may not dare try.

Sarah Kauss Founder, S’Well

Daniel Broukhim Co-founder, FabFitFun

Aaron Levant Co-founder & CEO, NTWRK

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At the risk of being boring, it is always prudent to remember that investing isn’t gambling, and losses avoided are as valuable as realized gains.

Innovations—in tax software, accounting technology, and the integration of the two—prove that the fluidity of information will always be partnered in kind with our ability to process, analyze, and react to that information.

In corporate law departments, approximately 70% of fees paid to outside counsel were based on billing arrangements other than standard hourly rates or billable hours.

Sander C. Zagzebski Partner, Greenspoon Marder LLP

Howard Grobstein Principal, Grobstein Teeple LLP

Mark Levinson Partner, Thompson Coburn LLP

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C Suite Quoted

Officine Gullo

Greater Los Angeles judging panel

There is no easy path to success.

Here’s to the unstoppables.

Our Greater Los Angeles panel of independent judges understands what it takes to be an unstoppable entrepreneur, including the determination needed to change our world in the most unexpected ways.

They will be selecting the next group of unstoppable leaders — the Entrepreneur Of The Year® 2019 semifinalists, finalists and winners.

Key dates for the Greater Los Angeles program: • Semifinalists named — March 26 • Finalists named — May 13 • Awards gala at The Beverly Hilton — June 20

EY LA

For ticket information or other questions, contact Greater Los Angeles Program Manager Ashley Evans at ashley.evans1@ey.com or visit us online.

www.ey.com/us/eoy/greaterla

Marc Graboff

Gabe Greenbaum

Eva Ho

Richard Jun

Michael Kirton

Jamie Montgomery

Maria Salinas

Susan Sarich

President — Global Business & Legal Affairs, Production Management and Studios Discovery, Inc.

Partner Pritzker Group Venture Capital

General Partner Fika Ventures

Co-Founder and Managing Partner BAM Ventures

Principal Leonard Green & Partners

Managing Director March Capital Partners

President & CEO Los Angeles Area Chamber of Commerce

Founder & CEO SusieCakes

2016 Hospitality winner

Renata Simril

Nadine Watt

President & CEO LA84 Foundation

President Watt Companies

2018 Family Business winner

Gillian Zucker

President of Business Operations LA Clippers

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