Hollywood’s most powerful climate change activist has invested a material amount of capital in Struck Capital's latest investment vehicle.
Adam Struck is the founder and CEO of venture capital firm Struck Capital, based in Los Angeles that’s made some really high profile deals and announcements regarding Leonardo DiCaprio. He has always been bullish about the local startup ecosystem.
Tech Mecca Replacing Silicon Valley
According to Adam Struck, they both share a vision for L.A. By combining efforts with Leonardo DiCaprio, he hopes to create a tech mecca in L.A. Adam always has had big dreams and he always pursues them to completion and adding in the biggest celebrity in the world it’s a green match made in heaven!
In Leonardo, he sees a person that he can partner with because he is an equally futuristic and ambitious person. Leonardo does more than acting; he is also a serious investor and has ambitions for improving the Golden State from climate change initiatives to entrepreneurial measures.
With the latest fund, they are embarking on building thriving solutions for societal problems in the post-coronavirus world. Covid-19 came with its fair share of challenges, many industries were disrupted and millions lost their jobs. The post-Covid era presents opportunities that businesses can take advantage of with the right tech solutions.
Early Stage Startups
Struck Capital will make seed investments in local early-stage startups. Already, they have been several funding rounds for L.A. startups. Companies that have benefited include Brainbase Inc., a Pasadena-based property management company, and Mythical Inc., a blockchain gaming startup.
Leonardo DiCaprio Joins the Second Fund
The first fund has already been fully spent and it has benefited many startups. The second fund that DiCaprio joins is a $55 million vehicle that Struck Capital began raising in 2009. Struck Capital Fund 2 will accept opportunistic capital until the end of the year.
The new vehicle is not just about investing and expecting a profit at the end of the day. It also focuses on leaving a solid impact on society. Therefore, startups to be targeted are those that tackle significant societal issues, especially those aiming to take advantage of market opportunities created by the Covid-19 disruption.
According to Adam Struck, companies that are solving big and meaningful problems will do well over time. It makes financial sense to focus on startups solving large problems.
Six Investments Already Made With the New Fund
Frame Wellness Inc., a mental health care platform, has been a beneficiary. This company has a clear connection to important social issues. It strives to democratize access to mental health. Frame Wellness has already launched several new digital features including "Stress Management for Business Owners," and "Local Therapy Matching."
The mental health strain caused by coronavirus lockdowns has made Frame to be more relevant than ever. It has accelerated interest in the service.
Toronto-Based BlackCart has also benefited. It received funding for its 'try-before-buying' technology. This uses fraud detection to ensure internet clothing retailers can use try-on services with minimal risk.
An Additional 2 Million Dollar Investment
Struck Capital received an additional $2 million investment. This funding round was done entirely through video calls and other internet communication channels. With the increase in funding, more startups will benefit which will increase the positive impact on society. Investors in L.A. have seen how Struck Capital is changing society and they have invested in the company.
Adam Struck says that despite the near-term pain that Covid-19 has caused, there are long-term benefits to be expected from the pandemic. One of them is the shift to remote work, which means that entrepreneurs don't have to be in Silicon Valley to succeed.
It is possible to succeed right in L.A, with the benefits of a higher quality of life and lower cost of living combined with an established local tech ecosystem. DiCaprio and Struck see the opportunity to create a local tech mecca in Los Angeles that will rival the world's greatest technology hubs.
About Struck Capital Latest Fund
The focus of Struck Capital Fund II is tech-driven startups that solve pressing societal challenges. Struck Capital aims to use the latest investment vehicle to harness the power of technology to solve everyday problems.