š° Disney's Epic Investment Stands Out Amidst Gaming Industry Layoffs
By Christian Hetrick,
2024-06-06
š¦ 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. š°š°š
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 LAās 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. ššøš®
š¤ 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 fromWonder 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 byVamos 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, andUpfront 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 smartphoneās 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
M13co-led a $6.5M Seed Round forCode, a micropayments startup building upon the kin (KIN) cryptocurrency. -learn more
Wonder Ventureshas 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 youāre a founder raising money in Los Angeles, give us a shout, and weād 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 Forceās 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 Forceās Next Generation Air Dominance initiative. Central to Andurilās 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.
š SpaceX gears up for another stellar year, active raises, and more
Jun 06 2024
Happy Friday Los Angeles! You made it through the first week of 2024!
š¦ Spotlight
Elon Musk may be a divisive (albeit entertaining) figure, but the continued success of SpaceX is pivotal for the aerospace industry in Los Angeles and more broadly around the world.
Image Source: SpaceX webcast
What happened with SpaceX in 2023?
Elon Musk challenged Facebook founder, Mark Zuckerberg to a cage fight.
SpaceX launched96 successfulmissions with its Falcon series of rockets, a 57% increase over its previous annual record.
SpaceX conducted two test flights of the largest and most powerful rocket ever built,Starship.
Roughly two-thirds of SpaceX's launches in 2023 were devoted to building out Starlink, the company's satellite-internet megaconstellation.
Isaacsonās Elon Musk biography was published in September including everything from Muskās tumultuous relationship with his father to his work ethic and ādemon modeā.
Moving forward what can we expect from SpaceX and its controversial founder? Continued innovation pushing the aerospace industry to new limits? Yes. More drama? Without a doubt.
Here is some of what is to come in 2024:
SpaceX has already deployed direct-to-smartphone satellites in itsfirst launch of 2024.
Bill Gerstenmaier, SpaceX's vice president of build and flight reliability, announced that they are looking to increase flight rate to144 flights during 2024.
SpaceX is working to get otherStarship vehicles ready, in keeping with the company's development philosophy, which prioritizes frequent test flights and rapid iteration.
CG Oncology, an Irvine, CA-based developer of immunotherapies for bladder cancer, filed for a $100M IPO. It plans to list on the Nasdaq (CGON) with Morgan Stanley as left lead underwriter, and has raised around $317m in VC funding. -learn more
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 youāre a founder raising money in Los Angeles, give us a shout, and weād love to include you in the newsletter!
Startup Cafe: Networking with a Kick- Entrepreneurs, Startups, and Tech Enthusiasts join together to meet and connect with like-minded people, industry professionals and investors, while enjoying a nice cup of coffee in Venice at The KINN. This weekās interactive discussion about AIās evolution in entertainment will featureDr. Sam KhozeandRachel Joy Victor.
Venice Tech Happy Hour- Join Startup Coil and FoundrHaus Wednesday evening and enjoy the sunset from the rooftop, grab a bite overlooking Abbot Kinney, and mingle with other tech enthusiasts and entrepreneurs by the bar on the patio.
Have an awesome event coming up? Reach out to be featured on next weekās Newsletter!
šWhat Weāre Reading
Tune in toTenOneTenPartnerMinnie Ingersollās conversation withJosh Porter, co-founder ofFirstLook Partners. Josh explains why he thinks smaller funds make the best investment opportunities. He has seen hundreds of decks and digs in on how to evaluate funds and his unique approach to co-investments. -listenhere
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.
Transforming LA into a Biotech Hub
Jun 05 2024
Image Source: UCLA Health
Skeptics once doubted the feasibility of a high-speed rail connecting LA to Las Vegas, but now it's becoming a reality. Perhaps all it takes is the right team to turn the improbable into the possible.
LA County has invested millions to establish itself as a biotech hub, including funding the nonprofit BioscienceLA and its BioFutures program. The county's investments have also created a supportive infrastructure with initiatives like the 20,000-square-foot BioscienceLA office in Culver City, generating significant economic activity and jobs. However, despite these efforts, LA has remained a secondary market for biotech and life sciences due to geographic sprawl and limited supply of life science/biotech space, even though the region boasts significant life science talent.
Life Science Degree Completions by Vacancy Comparison
A leading figure in the biotech scene in Los Angeles is the impressive biotech entrepreneur, Arie Belldegrun. Belldegrun has played a significant role in the successful exits of Agensys, Cougar Biotechnology, and Kite Pharma, which collectively sold for $13.4 billion. An Israeli-born urologist and immunology researcher, Belldegrun has been instrumental in building the biotech sector in Los Angeles. Utilizing proceeds from these exits, he established Bellco Capital, which primarily invests in life science and real estate companies, and co-founded several biotech-focused funds and ventures.
Belldegrun's efforts have culminated in the creation of the California Institute for Immunology and Immunotherapy at the former Westside Pavilion in Westwood, in collaboration with other prominent figures and philanthropists. The 700,000-square-foot property, acquired at the end of 2023, will also house the UCLA Center for Quantum Science & Engineering. āThe goal is to build the immunology equivalent of Silicon Valley in Los Angeles,ā says UCLA Health CEO John Mazziotta, MD, PhD. The center will hold its own patents and will eventually foster new biotech startups through its incubator and accelerator programs. The initiative has secured $500 million in state funding and plans to raise an additional $1 billion, positioning Los Angeles to become a leading biotech hub alongside regions like the Bay Area, San Diego, and Boston. Despite challenges posed by the city's geographic sprawl, these combined efforts by leaders like Belldegrun and county programs are transforming LA's biotech landscape, fostering a thriving environment for future scientific and commercial successes.
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.
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