🌴 LA Firms Weigh In on California's Groundbreaking VC Diversity Law

Good Morning Los Angeles,

We want to acknowledge that it has been a long difficult week for many and we hope that everyone is taking care of themselves.

🔦 Spotlight

California Governor Gavin Newsom signed Senate Bill 54, the first U.S. law targeting diversity in venture capital. Starting March 1, 2025, VC firms operating in the state must annually report founder diversity. 📝🌍🤝

Image Source: Cedric Letsch

The law pertains to the following venture capital firms:

• Headquartered in CA
• With operations in CA
• That have invested in companies that operate or are based in CA
• That have received investments from residents of CA

They are required to annually report demographic data of the founders they support, including race, disability status, and sexual orientation. This information will be aggregated and made public, fostering transparency and accountability within the industry. The bill has been met with enthusiasm from tech policy advocates, who hope it will lead to increased funding for startups led by women, Black, and Latinx founders, addressing historical disparities in venture capital allocation.

In Los Angeles, pioneering firms such as M13 and Slauson & Co. are at the forefront of embracing the groundbreaking Senate Bill 54. Anna Barber, a Partner at M13 and Chair of the Pledge LA Advisory Committee, is dedicated to expanding access to capital for underrepresented founders and fund managers. M13, in fact, voluntarily tracks the diversity of their portfolio founders, understanding the pivotal role that data and accountability play in this pursuit. For Pledge LA, Senate Bill 54 represents a potential milestone towards achieving heightened transparency and uniform diversity across portfolios in California's venture ecosystem.

Slauson & Co.’s venture capital approach has been rooted in transparency and inclusivity from the very beginning based on a deep-seated belief in the untapped potential within historically underrepresented communities. They emphasize that transparency around inclusivity, far from being limiting, has exceeded expectations and has led to founders from diverse backgrounds approaching them with innovative ideas and businesses. Find out more about Slauson & Co.’s journey of transparency and diversity here.

Some organizations have expressed initial concerns about the law and potential unintended consequences and even Governor Newsom acknowledged the need to refine the bill's language for effective implementation and plans to address any problematic provisions in the 2024-2025 Governor's Budget. Moving forward, advocates aim to push for similar legislation in other states and countries, with the ultimate goal of fostering greater inclusivity and equity in venture capital investments. 👥💸📈

🎉 Don’t forget about our referral contest this month! 🎉

The contest is simple: whoever refers the most friends to dot.LA using our referral program by October 31st will get a coffee and conversation with Zillow, Pacaso, and dot.LA co-founder Spencer Rascoff, where you can pitch him, get business advice, or just shoot the breeze. This is a great opportunity for any current or future entrepreneur, so good luck referring! ☕️☕️☕️

P.S. If you’re not based in LA, you can hop on a Zoom instead 💻

🤝 Venture Deals

LA Startups

• Machina Labs, a manufacturing robotics startup, raised a $32M Series B co-led by NVentures, NVIDIA’s venture capital arm, and Innovation Endeavors. - learn more
• Commons Clinic, a startup that provides in-person and virtual orthopedic care to patients, raised a $19.5M Series A led by RA Capital Management, with participation from Time BioVentures and previous investors Floating Point and Courtside Ventures. - learn more
• SuperOps.ai, a startup that creates cloud-native tools for managed service providers, raised a $12.4M Series B round co-led by Addition and March Capital, with participation from Matrix Partners. - learn more
• Kino Studios, a startup that provides filmmakers with tools to create, engage, and monetize their target audience before distribution, raised a $2M+ Pre-Seed Round from Sequoia Capital's scout program, Slow Ventures, Metaweb Ventures, Genius Ventures, The Near Protocol, and Blockchain Founders Fund. -learn more
• Sotai, a startup that aims to streamline the modeling of AI and machine learning applications, resulting in models that are easy to train, constrain, and comprehend, raised a $2M Seed Round led by Four Rivers. -learn more
• Auriga Space, a startup developing ground-breaking electromagnetic technology for responsive, lower-cost, and sustainable space launches raised a $5M Funding Round led by Tucks Ventures with participation from Unlock Venture Partners. -learn more
• Proteus Space, a satellite design and manufacturing startup, raised a $4.2M Seed Round led by Moonshots Capital with participation from Lavrock Ventures, The Veteran Fund, Mana Ventures, AIN Ventures, Capital Factory and Industrious Ventures. -learn more

LA Funds

• MaC Ventures participated in a $100M Funding Round for Stoke Space, a reusable rocket startup. -
• Wilshire Lane Capital participated in a $5.2M Seed Round for Ounce, a startup that partners with payers and housing organizations to embed trained community health workers within affordable housing properties. -learn more
• USC Venture Fund participated in a $2M Seed Round for Flaus, a startup that has developed an electric flossing device. -learn more

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✨Featured Event (11/9)✨

RECURRING REVENUE CONFERENCE on November 9th in Culver City

Southern California's premier SaaS and Subscription conference, this one-day event draws 600+ top founders, executives, investors, and Cloud experts. Experience a dynamic program with 20+ sessions, including keynotes, fireside chats, breakout sessions, and roundtable discussions. This year's insights span AI, metrics that matter, scaling strategies, making a pivot, and more. Keynotes include ChowNow and HackerOne CEOs. Attendees will enjoy plenty of networking time during breakfast, lunch, coffee cart breaks, and cocktails on the patio. Join us on November 9th at the Culver City Hilton to learn from industry leaders in the SaaS and subscription ecosystem.

Learn more and register using code DOTLA229 for a discounted ticket rate of $229. Register here.

If you're an early-stage founder, apply here for a $59 ticket.

📅 LA Tech Calendar

Monday, October 16th

• Sharehouse E-commerce Dinner - Apply to join this invite only event which is bringing together top e-commerce founders and leaders. Join ShareHouse for a vibrant evening of networking and incredible food!

Tuesday, October 17th

• AI X Mobility: Navigating the Future of AI in Transportation - Join CoMotion CEO John Rossant Tuesday evening in Santa Monica as he leads an exciting conversation about the revolution that AI is bringing to the future of transportation.

Wednesday, October 18th

• Global Growth Open Mic Night - Join Grow Big for a riveting afternoon event in Marina Del Rey where top brands and industry leaders take the stage, one after the other, to spill the beans on their electrifying journeys to digital global success.
• Entrepreneur's Dinner - Santa Monica - Entrepreneur dinner to get together, share ideas and support one another. Entrepreneurs of all levels are welcome. Most attendees are full time business owners. New business owners and people running a businesses on the side are also welcome.
• South Bay Tech & Aerospace Happy Hour - Join Startup Coil and Starburst’s tech and aerospace happy hour in El Segundo on Wednesday evening.

Thursday, October 19th

• AI Life Summit 2023 - Join AI LA for their fifth annual Life Summit where cutting-edge healthcare meets groundbreaking innovation. The dialogue is on 'Public Health' this year and will delve deeper into the transformative power of artificial intelligence.
• LA Women in Tech - Beach Walk & Career Chat - Join Clutch Talent and NY Women in Tech to chat about your career, share information on jobs, connect with other women in tech and enjoy some fresh air and a light walk.

Thursday, October 26th

• Expert DOJO Fall 2023 Cohort Demo Day! - Join Expert Dojo’s fall demo day to learn about the investment opportunities in their 10 newest investments! Sectors vary from artificial intelligence to gaming!

🌍 Around The Internet

Los Angeles Secures 4th Spot in PitchBook’s Global VC Ecosystem Rankings

Los Angeles' prominent position is due to its high development score, which takes into account factors such as deal value, deal count, exit value, exit count, fund value, and fund count from Q3 2017 to Q2 2023. Notably, Los Angeles lags behind the other leading VC developed ecosystems (San Francisco, New York, Beijing, and Shanghai) in terms of fund count. The average number of funds in the other ecosystems exceeds that of LA by over 200%. Despite this substantial difference in funds, both deal count and exit counts for these top VC developed ecosystems were only moderately higher than those in LA, with averages of 30% and 24% respectively shining light on the the substantial startup scene in Los Angeles. Find the full report here.

Source: Pitchbook as of June 30, 2023

📙 What We’re Reading

• Waymo starts free robotaxi tour in LA neighborhoods. -
• Discover how the streaming landscape is evolving as Los Angeles-based services face rising subscription costs, shedding light on the industry's shift towards on-demand content and its impact on consumers' wallets in an era of economic uncertainty. -

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.

🚗 Toyota Launches H2HQ in Advanced Gardena

May 10 2024

🔦 Spotlight

Image Source: Toyota

Toyota has transformed its facility in Gardena, CA, into a hydrogen research and development center to capitalize on the expanding market for hydrogen technology in California. With three decades of experience in hydrogen-powered mobility, Toyota is aligning with California's efforts to transition to fuel cells, particularly in the trucking and stationary power sectors. The facility, now named North American Hydrogen Headquarters, will house around 50 engineers and specialists focused on advancing both vehicle and stationary power applications. The revamped office space will serve as a hub for research, development, and commercialization of hydrogen-related products and technologies. Additionally, they have plans to expand the campus with features like a flexible microgrid and sustainable education center for people to learn more about sustainability and hydrogen's role in it. Toyota's President and CEO, Ted Ogawa, emphasizes their commitment to scalable, zero-emission technology and reducing carbon emissions through real-world products like the Mirai fuel-cell car.

Despite challenges such as a shortage of hydrogen refueling stations, Toyota is leveraging its resources to scale up hydrogen technology. The company operates a hydrogen stationary power at its Long Beach port facility, using biomass waste gas to produce clean hydrogen. California's stringent regulations, including requiring newer trucks and buses and eventually banning all internal combustion trucks by 2036, are driving the adoption of clean technologies..

🤝 Venture Deals

LA Companies

• Mother Science, a biotech skincare brand, raised a $3.5M Funding Round led by Greycroft. -
• Rainmaker, a cloud-seeding startup, raised a $6.3M Seed Round from Long Journey Ventures, Day One Ventures, Tamarack Global, 1517 Fund, Starship VC, Champion Hill Ventures, Garry Tan, and Balaji Srinivasan. - learn more
• Elementary, an AI-powered machine vision software developer, raised an undisclosed amount from Rockwell Automation. - learn more

LA Venture Funds

• Joyful Ventures co-led a $2.3M Pre-Seed Round for Maia Farms, a startup that specializes in producing and supplying mycelium-based products primarily targeting the meat alternatives market. - learn more
• Magic Fund participated in a $1.9M Funding Round for Renda, a startup that offers African businesses services such as warehousing, fulfillment, and last-mile delivery. - learn more
• Fika Ventures co-led a $4.1M Seed Round for Volta, a startup that focuses on providing financial institutions with tools and services to manage and optimize their cryptocurrency portfolios. - learn more
• OCV participated in a $50M Series B for Rad AI, a provider of AI-guided tools for radiologists. -
• Unlikely Capital Partners participated in a $14M Series A for Backpack Healthcare, an online provider of pediatric mental health care. - learn more
• B Capital led a $20M Series B for Sift Healthcare, an AI-powered healthcare payment solutions company. - learn more

LA Exits

• Bar Bakers, a nutritional snack maker, was acquired by TruFood Manufacturing. -

🤖 🏥 How Robots and Artificial Intelligence Are Saving Lives in Los Angeles Hospitals

May 03 2024

🔦 Spotlight

Image Source: Children’s Hospital Los Angeles

The integration of robots and artificial intelligence (AI) is transforming healthcare in Los Angeles, with hospitals increasingly employing these technologies to enhance patient care and operational efficiency. According to a Morgan Stanley report from August 2023, 94% of healthcare companies are utilizing AI or machine learning (ML), with the industry's budget allocation for AI and ML projected to double from 5.7% in 2022 to 10.5% this year. These technologies are being used for various applications, from autonomous robots delivering medications to AI systems predicting emergency room wait times and identifying life-threatening infections like sepsis (the third most common cause of death in U.S. hospitals).

Institutions like City of Hope are pioneering AI applications in healthcare, such as real-time clinical decision support tools. City of Hope's sepsis prediction model utilizes AI to monitor patients and detect subtle changes in their vitals, providing early alerts to medical staff, which has led to decreased ICU admissions and improved patient outcomes. Similarly, Antelope Valley Medical Center has implemented autonomous robots like Diligent Robotics Inc.'s Moxi to streamline medication and lab deliveries, reducing staff workload and enhancing efficiency.

Cedars-Sinai is leveraging AI through its CS Connect app, utilizing a chatbot to interact with patients and assist in scheduling appointments and providing diagnostic insights to physicians. Moreover, the hospital is actively combating AI bias to ensure fair and accurate treatment across patient demographics. UCLA Health's Robotic Surgery program, led by Dr. Mark Girgis, has been utilizing robotic surgery for over seven years, offering enhanced recovery, less pain, and shorter hospitalizations for patients. Girgis highlights the benefits of competition driving down costs and improving accessibility to robotic surgery platforms, such as the Da Vinci surgical systems.

The widespread adoption of AI and robotics in Los Angeles hospitals not only represents significant advancements in healthcare but also offers opportunities for the city's tech industry. Hospitals like Cedars-Sinai and Children's Hospital Los Angeles are leading the way with innovative AI-driven solutions. As a result, LA has the potential to attract top health tech talent, bolstering its growing health tech sector.

🤝 Venture Deals

LA Companies

• Diddo, a startup that uses computer vision to identify products in videos and enables viewers to purchase products seen on screen without leaving the video, raised a $2.8M Seed Round led by Link Ventures - learn more
• Shinkei Systems, a developer of fish-processing tech, raised a $6M Seed Round led by Cantos and joined by 8VC, Impatient Ventures, Susa/Humba Ventures, Carya Venture Partners, Ravelin Capital, Red & Blue Ventures, and Undeterred Capital - learn more
• Moso, a shop-to-earn crypto rewards startup, raised a $2M Seed Round from Symbolic Capital, Dao5, Coinlist, and Polygon Ventures - learn more
• Holograph, a startup whose platform enables the creation and management of tokens that can operate across multiple blockchain networks, raised an $11M funding round co-led by Mechanism Capital and Selini Capital, with Northrock Capital, Arca, Courtside Ventures, and Hartmann Capital also stepping up - learn more
• LiNova Energy, a developer of polymer cathodes for batteries, raised a $15.8M Series A led by Catalus Capital and joined by Saft - learn more
• Altruist, a custodian for RIAs, raised a $169M Series E led by Iconiq Growth and joined by Granite Capital Management in addition to insiders Adams Street Partners and Sound Ventures - learn more

LA Exits

• Insight Treatment Programs, a provider of teen outpatient programs for mental health and addiction treatment in Southern California was acquired by Torrance, CA-based Your Behavioral Health, a portfolio company of Comvest Partners - learn more
• SameSky Health, a patient engagement company merged with Tampa, FL-based GroundGame.Health, a startup linking community-based organizations with health plans and providers. After they combined the company raised a $17M funding round led by 7wireVentures - learn more
• Viking Holdings Ltd, a cruise operator based in Woodland Hills raised $1.5B in its IPO. On Wednesday Viking (VIK) closed at $26.10, 9% higher than the IPO price ($24) - learn more

📖 What We’re Reading

• Triller Corp., the Hollywood rival to TikTok, is being bought in an astounding $4 billion deal by AGBA Group Holding Ltd - learn more
• Despite the somewhat bleak gaming venture landscape, Santa Monica's Griffin Gaming Partners gears up for expansion, tapping into Hollywood's top talent and exploring new avenues in IP licensing and investment - learn more
• Sony and Apollo bid $26 billion for Paramount Global, intensifying the competition for the renowned film and TV company - learn more
• Rivian will receive an $827 million incentive package from Illinois to expand its manufacturing plant - learn more
• SAG-AFTRA partners with Nielsen for third-party streaming content measurement, ensuring transparency and accuracy in tracking hits on platforms like Netflix and Prime Video - learn more
• New platform, ProdPro Network, aims to help Hollywood crew members find work -

🕔😃 Tech Happy Hour Guide

May 01 2024

Good Afternoon!

Given the challenging times in the startup and venture capital world, we wanted to lift spirits (pun intended) with some of the LA tech community’s favorite happy hours on the Westside, offering a chance to take a break, network, and relax. So, without further ado, here are some top picks for happy hours on the Westside.

Ester’s Wine Shop

Image Source: Esters Wine Shop

Neighborhood: Santa Monica

Address: 1314 7th Street Santa Monica, CA 90401

Happy Hour Details: Esters Wine Shop’s happy hour runs Tuesday through Saturday from 4 to 6 p.m. and all day Sunday and Monday. A selection of wines are $10 by the glass and the special happy hour cocktail of the day is $14. Happy hour bites range from $3.5 oysters to a $23 charcuterie plate for two.

What You Can Expect: A sophisticated yet unpretentious wine bar with a diverse selection of wines, delicious food, and knowledgeable, friendly service in a beautiful and inviting atmosphere.

The Waterfront Venice

Image Source: The Waterfront Venice

Neighborhood: Venice

Address: 205 Ocean Front Walk Venice, CA 90291

Happy Hour Details: The Waterfront’s happy hour runs weekdays from 3 to 7 p.m. A selection of cocktails, beers, seltzers are buy one get one free including but not limited to espresso martinis, margaritas, and palomas.

What You Can Expect: Delicious margaritas, ample outdoor seating just steps from the beach, and a Venice vibe that includes a gaggle of post-work tech bros.

Santa Monica Brew Works

Image Source: The Infatuation

Neighborhood: Santa Monica

Address: 1920 Colorado Avenue Suite C, Santa Monica, CA 90404

Happy Hour Details: Santa Monica Brew Work’s happy hour runs Monday through Thursday from 5 to 6 p.m.

What You Can Expect: A spacious coastal vibe despite the location with refreshing beers and the added bonus of New York City's famous Emmy Squared craft pizza operation.

Birdie G’s

Image Source: Birdie G’s

Neighborhood: Santa Monica

Address: 2421 Michigan Ave, CA 90404

Happy Hour Details: Birdie G’s happy hour, also known as “Early Birdie’s Happy Hour” runs daily from 5 to 6 p.m. A selection of wines and cocktails are $12 and featured beers are $8. Happy hour bites range from $5 lavender almonds to $12 reuben fries.

What You Can Expect: A stylish industrial setting with a unique twist on comfort food that stands out from typical upscale dining options in LA.

Zinqué - Venice

Image Source: Eater LA

Neighborhood: Venice

Address: 1440 Lincoln Blvd, Venice, CA 90291

Happy Hour Details: Zinque Venice’s happy hour runs Monday through Friday from 4 to 6 p.m. All cocktails and wines by the glass are $12. Happy hour bites let you choose 3 from their list of tapas for $20.

What You Can Expect: A vibrant and airy, low-key neighborhood restaurant with french-inspired dishes bustling with people in meetings or out grabbing a meal with friends.

Maple Block Meat Co.

Image Source: TimeOut

Neighborhood: Culver City

Address: 3973 Sepulveda Blvd, Culver City, CA 90230

Happy Hour Details: Maple Block’s happy hour runs Tuesday through Friday from 5 to 6 p.m. and Monday from 5 to 9 p.m. Drinks are buy one get one free. Happy hour bites range from $7 chopped pork grilled cheese to $12 brisket nachos.

What You Can Expect: A modern, fantastic BBQ with standout brisket and a varied menu of comfort foods in a laid-back, approachable atmosphere.