And Rising Launches $ 2 Million ‘Creative Capital’ Fund in Los Angeles
A London-based marketing agency known for working with brands like Duolingo and Popchips is launching a $ 2 million fund for direct-to-consumer businesses and tech startups in Los Angeles. And no, the firm is not trying to write you a real check.
Instead of, And the rise is in the business of its creative services for stocks. Call it whatever you like – sweat equity, services for equity or co-founder Jonathan Trimble’s favorite term, creative capital – the model is not exactly new.
“We partly copy agency models like Red wood and Gin Lane, ”said Trimble, which credits Jules Ehrhardt, founder of a New York-based company called FKTRY, with the term “creative capital”. Ehrhardt (also former co-owner of we both) outlined a case for creative capital studios on its website, arguing that the model makes sense when agencies offer “premium, essential expertise,” money can’t buy “” that typically “companies in start-up phase would find it impossible to assemble ”.
And Rising co-founder Jonathan Trimble
Gin Lane (which relaunched under the name Diagram) is known to have traded in his branded marketing services for an initial stake in direct-to-consumer shaving company Harry’s, which was later sold to the owner of Schick. Likewise, Red Antler took a stake in Casper, the trendy mattress maker that eventually went public on the New York Stock Exchange.
And Rising is relatively newer to the game. It launched in 2018 as a 18 feet and rising and started trading his services for equity a year later, before building an entire business around the concept of creative capital.
And Rising argues that it offers “a more patient, invested, and equity-efficient alternative to traditional capital.” It aims to put the idea to work in Los Angeles by partnering with companies based in or around the city that benefit from its B Corporation certification and fund philosophy.
“We’re looking for clean, conscious brands in the direct-to-consumer space, or consumer tech for good,” Trimble said of the new fund called LA-Rising. The theme can find its place in the city that produces everything from cleansing juices to yoga. The agency’s portfolio to date includes a the hard brand Seltzer supported by musician Ellie Goulding and one burst lotus seed snacks maker, both focused on “clean comfort food”.
When it comes to scale, And Rising says the brands in its portfolio generate “just under $ 500,000” and “just over $ 145 million” in annual revenue.
“A lot of our portfolio brands are coming to the US, and we’ve also scaled brands from the US to the UK, especially the Halo Top and Popchips brands that come to mind,” Trimble said. “So it makes perfect sense for us to have a second base, and we really like Los Angeles as a home for that, in part because New York is pretty supported with some companies out there doing that. [the services for equity model] good.”
And Rising plans to establish a physical presence in Los Angeles this fall, and it envisions Silver Lake as a potential counterpart to its corporate headquarters in London’s trendy Camden district.
“LA has a lot of similarities to London, we think. It has the great creative culture surrounding it,” Trimble said. “The two cities are leading the trend in slightly different ways, so they’re really good test beds for whether you’re on to something. They have a lot of similarities and they’re also very different, so this should be a pretty rewarding couple, if you know what I mean. ”
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