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TYLT Lab co-founders Gerard Casale and Rami Rostami have long had a stake in the LA tech scene, founding LA area companies Tawlkin and Technocel, respectively, and investing in other local startups. But now, as a firm with a $20 million fund, the team is taking their commitment to a whole new level.
The venture capital firm plans to target 12 to 15 seed and Series A investments in 2014, in amounts between $50,000 and $2 million per deal. It is also taking a broad focus in verticals such including: consumer electronics, technology, telecom, consumer goods, clean technology, healthcare, entertainment and fashion.
"It doesn’t matter what the product or services is,” said Casale. "But it’s got to have a pop factor, a wow factor.”
“We are not interested in incremental change,” said Casale. TYLT wants to know: “is this something that really can be disruptive?”
TYLT also wants LA to know that it's not just a pool of money. The firm is working to differentiate itself by providing startup services and expertise to investees, something TYLT calls its “Shared Services Platform.” This gives entrepreneurs access to physical manufacturing (like 3D-printing), fulfillment, distribution and supply chain infrastructure.
Well aware of the difficulties of building a startup, co-founders Casale and Rostami wanted to leverage their hard-earned knowledge, resources and relationships to their portfolio, ensuring the greatest possibility of success.
Entrepreneurs will be able to access resources and expertise for back office support, distribution, management, product design and supply chain needs via TYLT’s platform. The company will also serve in an advisory capacity for software and app development support, using developers from previous companies that its partners have founded and invested in.
So far, TYLT has invested some of the $20 million fund in two LA area companies, Tixr, a ticket sales app and Cargomatic, a shipping app, which hails local freight trucks like Uber.
The fund also is invested in San Francisco-based, at-the-venue ticket upgrade company, Pogoseat,
Though, Casale and Rostami have also previously made investments in companies all-around the world including in Sweeden, Hong Kong and the Middle East, right now they see the Los Angeles ecosystem as particularly ripe with opportunity.
In Los Angeles, “there’s always been angels but what it’s lacking is the smaller to larger VC’s,” said Casale.
But now, “more and more companies are of the quality that they are ready for capital,” said Casale, so it makes sense to deepen investments in LA.
In fact, because of all the startup activity “it’s very difficult even to find office space between Venice and Santa Monica,” said Casale.
Moreover, Casale pointed to more engagement by local universities in developing talent, as a positive development within the LA ecosystem, citing LMU specificifically.
“We’ve been seeing interesting stuff in LA," said Casale. “We think it’s a great time. There’s a ton of action here in Southern California.”
