Dave Berkus

David W. "Dave" Berkus (born March 23, 1941) is an American angel investor - venture capitalist from California. He is credited with technological innovations in computer software for the hotel and lodging industries and was recognized by that industry's Hospitality Financial Technology Professionals association with its International Hall of Fame designation.^[1] In perhaps the first use of the term, Inc. Magazine described him as a "super angel" in 1996.^[2]

He attended Occidental College in Eagle Rock, California, graduating in 1962. He then served in the United States Naval Reserve for nearly a decade while simultaneously managing his first enterprise, a phonograph record production and manufacturing company, which he created at the age of 15. He is responsible for leading companies as CEO, chairman or lead director. He was recently awarded “Director of the Year” for his board leadership efforts with over 40 companies over the years.^[3][4]

He has formed, managed and sold businesses in the hospitality, entertainment and software industries. He specifically deals with business operations and venture investing and serves on a number of corporate boards, (see below).

Early years

In 1957, when he was 15, Berkus and a friend founded his first company, Custom Fidelity, Inc., whose purpose was to produce and manufacture phonograph records.^[5] In 1971 he managed this company to its initial public offering (IPO) under SEC Regulation "A," which pertains to small businesses. In 1968 he relocated the company from Pasadena to Hollywood. By 1974, the company employed over fifty people under its record manufacturing operation and other related divisions, and he sold his interest in the business.

During his time at Occidental College, Berkus held the position of editor for the Occidental Weekly,^[6] as well as president of the Kappa Sigma Fraternity.^[7] In his senior year he received the Wall Street Journal Award for his accomplishments in the study of economics. In 1962, he graduated from Occidental College with a Bachelor of Arts degree in Business Administration.

Berkus then served in the United States Naval Reserve from 1963-1967, serving as an aircrewman aboard P2 aircraft. He reached the level of E5, and then was awarded a direct commission in the United States Naval Reserve as an Air Intelligence Officer from 1967-1972, reaching the level of O3, while still running Custom Fidelity Inc.

Having programmed an early minicomputer for the record company in his spare time, he found a market for the programs by creating the earliest forms of packaged software. He sold his interest in the record company, and founded Berkus Compusystems Inc.,^[8] in 1974 to market the computer software he had written. One of the several hundred early customers was a local hotel, the Miramar Sheraton, whose owner asked him to write software for reservations and front office operations. From that request, Berkus turned his attention to the hotel industry that had little previous automation in its past, and formed Computerized Lodging Systems Inc.,^[9] in 1981. Through his work in these two companies, he helped to shape the minicomputer software industry, being recognized by the Inc. 500 list of America’s fasting-growing companies in 1987 and 1988.^[10] His company held 16% of the world market share for hotel automation systems. Ten years later his achievements were recognized by his induction into the highly exclusive (only 34 members) Hospitality (HFTP) “International Hall of Fame” in 1998.

Venture capital and corporate development

While Berkus often serves as chief financial officer of his early stage companies, his primary focus has been as a managing partner of Kodiak Ventures, LP, and Berkus Technology Ventures, LLC. Both are early stage investment funds.

Berkus is current or recent Board Chairman or board member for numerous public and private technology companies (see below), and has been active in a total of over forty private and public companies.

He has made 108 investments in early stage ventures, often known as angel investing, for which he has an IRR of 97%, which includes capital contributions to his two funds (Berkus Technology Ventures, LLC and Kodiak Ventures, L.P., for which he is the managing partner). He is also Chairman Emeritus of the Tech Coast Angels,^[11] one of the largest angel investor networks in the United States, and is creator and serves as Managing Director of its two ACE Fund LLCs.

Philanthropy

Berkus is a longtime trustee of Occidental College and was a driving force in developing its newest and largest dormitory, a 274-bed hall which was originally named Rangeview Hall. In 2013 the dormitory was renamed Berkus Hall in recognition of a $5 million gift from Berkus and his wife and children.^[12]

Affiliations

In recognition for adding significant shareholder value for emerging technology companies over the past decade, he was named “Director of the Year-Early Stage Businesses” by the Forum for Corporate Directors of Orange County, California, and Technology Leader of the Year by the Los Angeles County Board of Supervisors.

Current boards of directors

• AuriQ Systems, Inc.
• EPC International, Inc. (Chairman)
• Trancepta, Inc. (Chairman)
• CPM Systems, Inc. (Chairman)
• ExtendCredit, Inc. (Chairman)
• Beacon Healthcare, Inc.
• Kodiak Ventures, L.P. (Managing Partner)

Past boards of directors

• LeisureLink, Inc. (Chairman) (merged with VacationRoost, Inc.)
• Apogee Broadcasting Corporation (sold to a broadcasting conglomerate)
• GameSpy Industries, Inc. (Chairman) (sold to Fox Interactive)
• Sulcus Hospitality Technologies Corp. (AMEX:SUL) (sold to Eltrax, Inc. (NASDAQ: ELTX))
• Macro Educational Systems, Inc. (sold to NCS-Pierson AMEX:NLCS)
• Durand Communications, Inc. (sold to Webb Interactive NASDAQ:WEBB)
• V Systems, Inc.(sold to Esker, Inc. NASDAQ: FR:3581)
• Word-Of-Net, Inc., (sold to Inceptor, Inc.)
• Nirvana Technology, Inc. (Chairman)
• MyShape, Inc.
• FCS North America, Inc.
• Adventurelink Travel Inc. (Chairman)
• Teresis Media Management, Inc.
• PlanetWide Media, Inc.

Authored works

• Berkus, D., & Kelly, B. (1994), Better Than Money!, Santa Barbara, CA: Synergy Press.
• Berkus, D. (2006), Extending the Runway, New York, NY:: Aspatore Press.
• Berkus, D. (2012), BASIC BERKONOMICS, Los Angeles, CA: Berkus Press.
• Berkus, D. (2009), BERKONOMICS, Los Angeles, CA: Berkus Press.
• Berkus, D. (2011), ADVANCED BERKONOMICS, Los Angeles, CA: Berkus Press.
• Berkus, D. (2013), Small Business Success Collection: Resources for entrepreneurs, investors and corporate boards (Vols. 1-8), Los Angeles, CA: Berkus Press(resources for entrepreneurs, investors and corporate boards).
• Berkus, D. (2014), Small Business Success Collection: Resources for entrepreneurs, investors and corporate boards (Vols. 1-8), (2nd Ed.), Los Angeles, CA: Berkus Press.

References