🛰 Apex Opens a New Satellite Factory; LA's Active Raises; and AI LA Supports Tech + Community

As most people are winding down for the holidays, LA’s tech scene keeps on ripping! Read on for a new local satellite factory, LA startups raising capital, and more.

🔦 Spotlight

Apex founders Max Benassi (left) and Ian Cinnamon outside Factory One

As most of you, our loyal readers, know, LA is the center of aerospace innovation in America these days. From giants like SpaceX (how about that $180B valuation!) to growth stage rocket ships (ha) like Relativity Space, our sunny city is the place to find the coolest companies sending people and stuff into outer space.

LA-based Apex is still in its early days, but it is poised to become another feather in the cap of our burgeoning aerospace ecosystem. Apex is a satellite manufacturer, attempting to give satellites their “Model T moment.” Traditionally, satellites have been custom built on a one-off basis, with little standardization or economies of scale. Apex plans to change that in its new Playa Vista facility, which will serve as the company’s new HQ as well as an expanded manufacturing base.

“Scaling our satellite production capabilities is essential for meeting customer demand. Our customers are seeking spacecraft with shorter lead times, and Factory One will deliver: in just a few years, the facility will produce 50 satellite platforms annually, across our Aries and Nova-class models. From there, we can continue to increase capacity at this facility” said Ian Cinnamon, Chief Executive Officer at Apex.

Obviously opening the 46,000 square foot Factory One, as Apex is calling it, takes a lot of cash. Luckily the company has plenty on hand after its $16M Series A, raised this summer from Andreessen Horowitz and Shield Capital.

Looking forward to seeing what Apex can accomplish in the next few years in its new Playa Vista home.

🤝 Venture Deals

Actively Raising

• CZero, a hard-tech startup that is developing a technology for decarbonizing natural gas, is raising a $1.5M Seed Round. - learn more
• Couri, a technology startup addressing last-mile delivery issues, is raising a $450K Pre-Seed Round at a $2.2M post money valuation. - learn more
• Sweetie, a marketplace to help people plan date nights, is raising a $250K Angel Round. -
• StartupStarter, an investment platform that provides real-time data and analytics on startups, is raising an $850K Angel Round. - learn more

If you’re a founder raising money in Los Angeles, give us a shout, and we’d love to include you in the newsletter!

LA Startups

• Helicity Space, a startup that says it has discovered a way to use plasma jets for fusion reaction, raised a $5M Seed Round from backers such as Airbus Ventures, the VC arm of the major European aerospace giant, TRE Advisors, Voyager Space Holdings, and others. - learn more

LA Funds

• March Capital led a $56.5M Series A for Essential AI, a startup that will use AI for corporate functions such as data analysis and automate monotonous tasks. -learn more
• Riot Ventures, led a $100M Series B for True Anomaly, a maker of small satellites for surveillance and reconnaissance of space objects. -learn more
• Clocktower Technology Ventures participated in a $6M Seed Round for Hyperplane, a developer of customer behavior models for banks. -learn more

LA Exits

• MOJO Sports, an LA-based youth sports media platform co-founded and led by former ABC News president Ben Sherwood, agreed to be acquired by youth sports management platform TeamSnap. -learn more

✨ Featured Event ✨

Attendees rocking their holiday best at the #LongLA Holiday Party

This week, our friends at AI LA hosted the third annual #LongLA Holiday Party at the Pluto Penthouse on Wilshire. It was a packed house with dozens of AI builders, investors, and enthusiasts all celebrating what makes LA tech so special: the community. In addition to the conversations, ugly Christmas sweaters, and thumping bass, AI LA generated thousands of dollars in charitable donations to wonderful organizations like Children’s Hospital of Los Angeles, Los Angeles Regional Food Bank, and The Midnight Mission.

See you there next year!

📅 LA Tech Calendar

Wednesday, December 20th

• Startup/Investor Poker Showdown - Join other founders and investors on the Westside for an evening of networking, strategy and high-stakes fun!

Friday, December 22nd

• Pitch and Run LA: Friday Runs - Join PitchandRun for Pitch and Run Fridays! 7:30am near 17th St & San Vincente for a ~3.5 mile loop at an easy-conversational pace. Pitch and Run is designed to help you connect with others on ideas, passions, and life while enjoying a casual run.

Have an awesome event coming up? Reach out to be featured on next week’s Newsletter!

📙 What We’re Reading

• Super League Enterprises, previously focused on esports, underwent a significant pivot towards enabling digital advertising campaigns in gaming platforms and leveraging proprietary technology and acquisitions. -
• American Inno's 2023 gift guide: 20 unique finds from U.S. startups. -

Relativity Space targets more funding, Marvel Snap developer secures $100M

Jun 06 2024

Happy Friday Los Angeles!

🔦 Spotlight

Two companies are surging forward in Los Angeles’ most prominent tech industries, aerospace and gaming.

Long Beach-based Relativity Space, known for launching the first 3D-printed rocket, is reportedly securing additional funding to maintain its valuation at $4.2 billion. The funding round is led by existing investors Bond Cap and Social Capital, indicating ongoing confidence in Relativity Space's approach to aerospace manufacturing. The company's success highlights the transformative potential of 3D printing in the space industry, symbolizing a dynamic and rapidly evolving era in private space exploration.

Image Source: Steam

Irvine-based game development studio Second Dinner, not to be confused with second breakfast from Lord of the Rings, known for the massive success of Marvel Snap secured a $100M Series B investment led by LA-based, Griffin Gaming Partners. With 22 million+ downloads and $200 million+ in revenue since its 2022 launch, MARVEL SNAP continues to thrive, and Second Dinner plans to use the investment to develop new titles, incubate original IP, further expand globally, and “buy a lot of boba".

🤝 Venture Deals

Just Announced

• Second Dinner, a five-year-old gaming studio based in Irvine, behind Marvel Snap, a digital card game, raised a $100M Series B round led by Griffin Gaming Partners. -learn more
• Sway (formerly Returnmates), a technology company enabling a customer-centric delivery and return experience, raised a $19.5M Series A led by 7GC. -learn more
• Halogen Ventures participated in a $5M Series A for WTHN, a wellness startup that offers products based on traditional Chinese medicine. -learn more
• Fika Ventures participated in an $8M Seed Round for Dispatch (formerly OneAdvisory), a wealth technology company that enables effortless client data management for registered investment advisors. -learn more

LA Exits

• TTM, an El Segundo, Calif.-based provider of thermoformed and flexible packaging solutions for foodservice, food production, and grocery was acquired by AmerCareRoyal. - learn more

Actively Raising

• ReelCall, Inc., an entertainment technology company focused on powerful apps and platforms that help build and maintain the professional network of connections vital to career growth, is raising a $850K Pre-Seed Round. - learn more
• CZero, a hard-tech startup that is developing a technology for decarbonizing natural gas, is raising a $1.5M Seed Round. - learn more
• Couri, a technology startup addressing last-mile delivery issues, is raising a $450K Pre-Seed Round at a $2.2M post money valuation. - learn more
• Sweetie, a marketplace to help people plan date nights, is raising a $250K Angel Round. -
• StartupStarter, an investment platform that provides real-time data and analytics on startups, is raising an $850K Angel Round. - learn more

If you’re a founder raising money in Los Angeles, give us a shout, and we’d love to include you in the newsletter!

📅 LA Tech Calendar

Sunday, January 14th

• VR Creators Hackathon hosted by DeoVR - A day of skill-building activities on VR filming and editing. The event will feature speakers covering hardware, editing methodologies, and immersive filming concepts.

Wednesday, January 17th

• LA Founders & Investors - AI LA's first event of 2024 to bring together founders and investors in AI. The night will start with networking followed by a fireside chat with two special guests.

Thursday, January 18th

• Los Angeles Startup Arena - An afternoon in Santa Monica filled with startup pitches, an investor panel and presentation, and investor and founder networking.
• Panel + Happy Hour: Raising Capital in 2024 - This event, hosted by the Greater Los Angeles Tech and Entrepreneurship Group, is about preparing entrepreneurs for 2024. In it they will talk about the current fundraising environment, and what to expect going into Q1.
• S*xTech Mixer @XBIZ LA - Come meet the S*xTech community in the heart of Los Angeles! Romance, dating, sexual wellness, intimacy, privacy, communication, safety - all of it is being innovated today across the $100B+ industry.

Saturday, January 20th

• The Future of Gaming: Opportunities in Connected Ecosystems - Join gaming enthusiasts and hear from speakers touch on the three foundations shaping the next phase of gaming technology: game transactions, privacy and security; authorship, generative AI, and new IP models; and decentralization, distribution, and extended gameplay. After the panel discussion there will be audience Q&A along with networking afterward.

Wednesday, January 24th

• The Female Funders Club - Join this monthly networking event Wednesday evening in Santa Monica and connect with other tech-oriented investors, wealth managers, asset managers and women who are interested in starting their tech investment journey.

Have an awesome event coming up? Reach out to be featured on next week’s Newsletter!

📙 What We’re Reading

• California is looking to reduce traffic with the help of AI. -
• Netflix Games gains traction with installs up 180% year-over-year in 2023, thanks to GTA and others. -learn more

🏰 Disney's Epic Investment Stands Out Amidst Gaming Industry Layoffs

Jun 06 2024

🔦 Spotlight

In the midst of widespread gaming industry layoffs, a glimmer of positive news emerges as Disney announces a significant move: a $1.5 billion investment in Epic Games. 🏰💰🐭

Image Source: Disney

Disney's $1.5 billion investment in Epic Games, disclosed late Wednesday, signals a strategic alignment aimed at expanding the success of "Fortnite." The deal enhances Epic's growth prospects after financial setbacks, including layoffs, and strengthens the partnership between the two companies. With Disney gaining a larger equity stake in Epic, the collaboration will broaden the integration of beloved Disney franchises like Marvel, Star Wars, Pixar, and Avatar into the game, potentially boosting its appeal and longevity. This significant investment underscores Disney's commitment to interactive entertainment and signifies a shift towards games as a primary revenue stream, aligning with the growing trend of digital engagement among younger demographics. Moreover, the potential for crossover sales of physical Disney products within "Fortnite" and the exploration of new content distribution channels are just some of the opportunities arising from this partnership.

For LA tech, the Disney-Epic Games partnership represents a validation of the region's burgeoning tech and gaming ecosystem. The substantial investment in Epic, who maintains a large Los Angeles office with 1,000+ employees (according to LinkedIn), reflects confidence in the LA’s talent pool and innovation potential. Additionally, this partnership between two industry giants fosters an environment for further collaboration, investment, and growth within LA's tech sector. As Disney and Epic Games deepen their ties and explore new avenues for content integration and distribution, it not only elevates the prominence of LA as a tech hub but also stimulates economic growth and job creation in the region. This partnership highlights LA's unique position as a hub where technology and entertainment converge. With its ability to integrate diverse industries, LA is driving innovation and expansion in digital entertainment. 🚀💸🎮

🤝 Venture Deals

LA Companies

• ProducePay, a financing and marketplace platform for the fresh produce market, raised a $38M Series D led by Syngenta Group Ventures joined by Commonfund, Highgate Private Equity, G2 Venture Partners, Anterra Capital, Astanor Ventures, Endeavor8, Avenue Venture Opportunities, Avenue Sustainable Solutions, and Red Bear Angels. - learn more
• Blush, an invite-only dating app that drives users to local businesses on dates, raised a $7M Seed Round from individuals like Naval Ravikant. - learn more
• Mogul, a startup founded last year that provides an overview of an artist's royalty earnings and identifies areas where money is owed but has not yet been collected, raised a $1.9 million seed round from Wonder Ventures, United Talent Agency, AmplifyLA, and Creator Partners. - learn more
• Avnos, a hybrid direct air capture startup, raised a $36M Series A led by NextEra Energy and joined by Safran Corporate Ventures, Shell Ventures, Envisioning Partners, and Rusheen Capital Management. - learn more
• AI.fashion, startup whose mission is to help retailers enhance the online shopping experience by providing consumers with virtual try-ons and personalized fashion recommendations, raised a $3.6M Seed Round led by Neo. - learn more
• Suma Wealth, startup that aims to demystify financial topics and provide culturally relevant content, virtual experiences, and resources to help Latino users navigate financial challenges and opportunities, raised a $2.2M Seed Round . Radicle Impact led, and was joined by Vamos Ventures, OVO fund and the American Heart Association Impact Fund. - learn more
• 222, a startup that helps users discover their city and meet new people through unique social experiences, raised a $2.5M Seed Round. Investors included 1517 Fund, General Catalyst, Best Nights VC, Scrum Ventures, and Upfront Ventures. - learn more
• LimaCharlie, a security operations cloud platform, raised a $10.2M Series A led by Sands Capital. -
• Polycam, an app that uses a smartphone’s sensors to capture 3D scans of objects, raised an $18M Series A co-led by Left Lane Capital and Adjacent, and joined by Adobe Ventures and individuals like Chad Hurley and Shaun Maguire. -learn more.

LA Venture Funds

• M13 co-led a $6.5M Seed Round for Code, a micropayments startup building upon the kin (KIN) cryptocurrency. - learn more
• Wonder Ventures has garnered $102 million in fresh capital commitments. -

Actively Raising

• ReelCall, Inc., an entertainment technology company focused on powerful apps and platforms that help build and maintain the professional network of connections vital to career growth, is raising a $850K Pre-Seed Round. - learn more
• CZero, a startup building software to decarbonize logistics for logistics businesses and goods business through a vetted marketplace and optimization software. - learn more
• Couri, a technology startup addressing last-mile delivery issues, is raising a $450K Pre-Seed Round at a $2.2M post money valuation. - learn more
• Sweetie, a marketplace to help people plan date nights, is raising a $1.5M Pre Seed Round. -
• StartupStarter, an investment platform that provides real-time data and analytics on startups, is raising an $850K Angel Round. - learn more

If you’re a founder raising money in Los Angeles, give us a shout, and we’d love to include you in the newsletter!

Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.

Venture Waves, Climate Tech Wins, and Silicon Beach's Ongoing Evolution

Jun 06 2024

Anduril Seeks $1.5B in VC Funds

Defense company Anduril Industries Inc., based in Costa Mesa and founded by Palmer Luckey, is seeking to raise $1.5 billion in fresh funds to boost its valuation to $12.5 billion or more, according to sources quoted by The Information. This fundraising effort, if successful, would mark one of the largest venture capital rounds of the year.

Image Source: Anduril

Anduril recently secured a contract to develop and test small unmanned fighter jet prototypes under the Air Force’s Collaborative Combat Aircraft (CCA) program, beating out major defense companies like Boeing, Lockheed Martin, and Northrop Grumman. Alongside General Atomics, Anduril will design, manufacture, and test these aircraft, with a final multibillion-dollar production decision expected in fiscal year 2026. This program aims to deliver at least 1,000 combat aircraft to fly in concert with manned platforms and is part of the Air Force’s Next Generation Air Dominance initiative. Central to Anduril’s success in this contract is the Fury autonomous air vehicle, acquired through the purchase of Blue Force Technologies. This victory underscores Anduril's rapid advancement in the defense sector, aligning with Luckey's vision of building faster and more cost-effective defense assets. - learn more

Los Angeles Ranks Number 1 in Emerging Climate Tech Hub

The 2024 Emerging Climate Tech Hubs Report by Revolution highlights Los Angeles as a burgeoning center for climate tech innovation. LA's growth in this sector is driven by its diverse talent pool, strong research institutions, and a culture of environmental consciousness. The city's unique mix of legacy industries, such as entertainment and aerospace, alongside emerging tech companies, positions it as a pivotal player in the climate tech landscape. This shift reflects a broader trend of decentralized climate tech funding across the U.S., reducing the historical dominance of California's traditional hubs. - learn more

Silicon Beach: Looking Back, Moving Forward

Assessing the overall health of the startup market is challenging, especially as venture capital funding has decreased by an average of 61% from 2021 to 2023 across the top VC markets in the US. Markets with robust ecosystems in AI, SaaS, Biotech, Healthtech, and Fintech appear to be weathering the downturn better than those focused on Consumer and Gaming industries, areas where Los Angeles traditionally excels.

Percent Change In VC Funding By Region

LA Times paints a rather bleak outlook on the Los Angeles tech scene noting venture capital funding in Greater Los Angeles plummeted 73% from 2021 to 2022. Silicon Beach, once a vibrant tech corridor, currently faces high vacancy rates and lacks late-stage financiers, especially in the AI sector. However, there are positive signs, including growth in aerospace startups and increased venture capital investment in early 2024, suggesting a potential rebound for LA's tech ecosystem.

While LA may not be exceeding expectations during this period, its tech ecosystem warrants a nuanced evaluation, given the broader market dynamics and its strong performance in specific sectors. Reach out to us with your thoughts.

Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.