Club W's move to El Segundo displays several trends that will only become more pronounced as time goes on. L.A's tech community continues to mature, succeed, and expand. This expansion is pushing companies out of the Santa Monica epicenter and creating other tech hubs throughout L.A. El Segundo, especially with the proximity to the South Bay homes of many entrepreneurs, is becoming more and more attractive for an office. Low rents and favorable business taxes will also continue to draw companies to El Segundo. Further, Club W is moving its HQ down from San Francisco - a clear sign that "making it" in tech these days no longer requires a NorCal residence.
The company announced last week that it raised $3.1 million in a round led by L.A. venture capital firm Crosscut Ventures. Also included in the round was Amplify, the Venice accelerator that has been mentoring Club W.
Adam Goldenberg, venture partner at Crosscut and co-founder of subscription e-commerce company JustFab, is joining the company’s board.
Club W, which offers subscribers three bottles of wine per month for $39, has workers in Denver, San Francisco and Los Angeles. With the move, most of the 10-person company will be in El Segundo in the next couple of months.
The company previously rented space at the location, 2301 Rosecrans Ave., but will expand in the building. That location is also home to other e-commerce startups including Goldenberg’s JustFab.
Chief Marketing Officer Ari Radetsky said the company is moving to be closer to investors and board members and to take part in the growing L.A. tech scene.
“Nobody is going to replace Silicon Valley, but San Francisco has really out-priced itself,” Radetsky said. “Smart companies are looking to take advantage of where funding is but not pay the exorbitant costs.”
*Shared by Jeff Vertun, Scott Steuber & Ted Simpson