About Royal Street Ventures

Our direct investment strategy means we are involved with our entrepreneurs in a meaningful way.

Strong Entrepreneurs


We believe in investing in highly ethical, smart-working listeners who seek committed partners to help them build their businesses.

Markets


We invest in companies based in the Mountain West and Midwest with select engagements in the Pacific Northwest and California. If we can’t be on-site with a company in three hours, we can’t be a good partner.

Sectors


As early-stage investors, we love to make good ideas into great companies. The company we invest in on Day 1 will likely look very different on Day 2. Capital efficiency is key. We’re looking for great entrepreneurs, not sectors.

Early Investments


We are most often part of the first “organized money” invested in companies. We expect our companies to have customers beyond the founders’ uncle or their best friends. We want to be highly engaged in a way that is most helpful to the company. We coach companies to hit milestones that create a sustainable business.

We look for companies who:

  • Can use capital efficiently
  • Do not require large sums of future capital to scale
  • Can generate meaningful revenue quickly
  • Can create shareholder value at each stage of growth

“At some point you have to build a real business, generate real profits, sustain the company without the largess of investor’s capital, and start producing value the old-fashioned way.”

 

— Fred Wilson, Union Square Ventures

Our History

1895-1908

Sears, Roebuck

Julius Rosenwald becomes a partner in Sears, Roebuck, and within a year is named Vice-President. He grows annual sales from $750,000 to $50 million. In 1908, Rosenwald is named President of Sears, Roebuck.  

1912

Tuskegee Institute

After meeting Booker T. Washington, Julius Rosenwald joins the Board of Directors of the Tuskegee Institute, a position he would hold for the rest of his life. In 1924, Edgar Stern would also be elected to the Board.

1912

New Orleans

In 1912, Edgar Stern is elected to the New Orleans Parish School Board and the Charity Hospital Board. In 1915 he becomes President of the New Orleans Association of Commerce, and one year later is appointed Director of the New Orleans Public Belt Railroad. In 1926, Edgar Stern will run for and win Presidency of the New Orleans Cotton Exchange. At 27, he is the youngest person to hold this title.

1913

Rosenwald Schools

Inspired by his meeting with Booker T. Washington, Julius Rosenwald funds the construction of six schools for African-American students in rural Alabama, including the New Hope Rosenwald School in Fredonia, Alabama. Over the next two decades, more than 200 Rosenwald Schools were built throughout the United States.

1917

The Rosenwald Fund

Rosenwald establishes the Rosenwald Fund, “for the well-being of mankind,” with all funds being spent on philanthropic causes. Edgar Stern eventually becomes a trustee. By 1948, the fund would be exhausted. In total, $70 million funded public schools, colleges, universities, museums, Jewish charities, and African-American institutions.

1919

Sears Bailout

The economic impact of World War I drains Sears, Roebuck. Rosenwald pledges $21 million in personal cash, plus personal stocks and assets, to keep the company out of bankruptcy. Sears regained financial stability in three years.

1921

Rosenwald-Stern Marriage

Julius' Rosenwald's daughter Edith marries Edgar Stern.

1927

Distinguished Achievement in Race Relations

Julius Rosenwald receives a special gold medal from the William E. Harmon Awards for Distinguished Achievement in Race Relations for his contributions to the education of African-American youth. He also becomes the President of the Museum of Science and Industry in Chicago.

1929

Mixed-Use Housing

The Michigan Boulevard Garden Apartments, one of the first mixed-use housing developments in America, is built in Chicago, using a $2.7 million investment from Rosenwald. Free Hills Rosenwald School is built in Free Hill, Tennessee.

1929

US Chamber of Commerce

Edgar Stern joins the Board of Directors of the United States Chamber of Commerce.

1929

Petitioning the President

On Edgar Stern's recommendation, the Rosenwald Fund writes to U.S. President Herbert Hoover to suggest that the welfare of African-Americans, particularly regarding unemployment, "be included in the matters to which the President and his advisors are giving attention."

1930

Dillard University

Dillard University is chartered by historically Black colleges Straight University and Union Normal School/New Orleans University. Edgar Stern serves on the Board of Trustees. Main campus construction will begin in 1934 and classes will begin a year later. In subsequent years, the school year will traditionally end in a deficit, which Stern will help cover from his personal funds. Additionally, the Stern Family Fund makes possible the construction of the school's auditorium and gymnasium, the Stern Science Hall, assorted building improvements, and a $3 million endowment, which is later increased to $4.5 million.  

1931

Flint-Goodridge Hospital

Flint-Goodridge Hospital in New Orleans (formerly the Phyllis Wheatley Sanitarium and Training School for Negro Nurses) comes under the purview of the newly formed Dillard University. The 80-bed Flint-Goodridge Hospital will open in 1932. The Hospital will provide unprecedented opportunities for African-Americans to become medical providers.

1936

Stern Fund Established

Edith Rosenwald Stern and Edgar Stern establish the Stern Fund, with the stipulation that the fund would go out of existence in 50 years. The Stern Fund closes down in 1986, having disbursed $25 million.

1948

WDSU

Edgar Stern and his son, Edgar B. Stern, Jr., found WDSU-TV, Channel 6 in New Orleans. It is the first commercial station in the Gulf Coast area.

1948

Royal Street Corporation

The Sterns diversify WDSU Broadcasting Services by creating the Royal Street Corporation. RSC goes on to invest in luxury hotels and resorts, charter airplane services, brewing companies, and restaurants.

1960

The Royal Orleans

Edgar B. Stern, Jr. develops the Royal Orleans hotel on the site of the former St. Louis Hotel in New Orleans. In 2008, the Royal Orleans would become the 345-room Omni Royal Orleans.

1966

Oakwood Shopping Center

Edgar B. Stern, Jr. develops Oakland Shopping Center in the New Orleans metropolitan area. It is the one of the first shopping malls in the country to feature air conditioning.

1968

Park City Resort

Edgar B. Stern, Jr. moves to Aspen, Colorado. He purchases Treasure Mountains Resort and transforms it into Park City Resort. He also develops the Starwood residential subdivision and the Red Mountain Ranch.

1969

The Royal Sonesta New Orleans

Edgar B. Stern, Jr. develops the Royal Sonesta New Orleans hotel on Bourbon Street.

1972

The Stanford Court Hotel

Edgar B. Stern, Jr. develops the Stanford Court Hotel at 905 California Street in San Francisco.

1975

Deer Valley Resort

Edgar B. Stern, Jr. sells the Park City Resort and acquires 1,700 acres that, in 1981, will become the Deer Valley Resort.

1977

Sterns "Leading Philanthropists"

The New Orleans States-Item names Edith and Edgar Stern New Orleans' leading philanthropists of the past hundred years, further noting, “every city should have its own Sterns.”

1998

The Discovery Garden

The Discovery Garden, a one-half acre educational and interactive garden for children of all ages, opens in the garden of Longue Vue, the former home of Edith and Edgar Stern.

2012

Royal Street Investment & Innovation Center

Royal Street Corporation creates the Royal Street Investment & Innovation Center, an angel and venture capital fund with a portfolio of over 20 companies.

2015

US Ski and Snowboard Hall of Fame

Edgar B. Stern, Jr. is inducted posthumously into the U.S. Ski and Snowboard Hall of Fame Museum.

2015

Royal Street Ventures

Royal Street Ventures, an investment fund focused on entrepreneurship, is created out of the Royal Street Innovation and Investment Corporation. The company is headquartered in Park City, Utah.

2016

Royal Street Ventures Expands Into Kansas City

Royal Street Ventures launches a $25 million fund in Kansas City, focused on early-stage growth companies.

© 2017 Royal Street Ventures