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X5 Takeaways From This Year’s Augmented World Expo
As the “metaverse” slowly transitions from a buzzword to reality, the Augmented World Expo—a gathering of augmented reality CEOs, engineers, creators, consumers and investors—showcased what the future of the industry might look like.
Since its first event in 2010, AWE has grown to over 250 augmented and virtual reality companies from around the globe. The 2022 conference, which ran from June 1-3 at the Santa Clara Convention Center in the Bay Area, was the biggest yet—and flush with new experimental formats and new technology.
One example of the conference's new approach: a three-act augmented reality play performed at the conference called “MetaTr@versal: A Day in the Life.” Written by extended-reality (XR) technologist Sophia Moshasha, the play used VR screen mirroring to tell the story of an entrepreneur pitching new interoperability standards to investors.
“It was super ambitious, because we were using technologies from ARWall,” said AWE Head of Operations Andrea Lowery. “I can't even characterize all the different audio visual inputs and time and energy and creativity and tech that went into this thing.”
This year’s AWE featured keynotes, breakout rooms and a tech playground that included interactive and immersive experiences. Here are the five standouts from the conference and the advancing technology.

Magic Leap’s New Headset
Lines began snaking around the corner of the Magic Leap booth before the exposition floor even officially opened, as crowds gathered to try the Florida-based company’s new Magic Leap 2 augmented reality headset.
Participants were paired up and assigned to one of three demos. I was able to try the “wildfire” demo, where the glasses scanned a printed code on a circular tabletop and displayed a topographical map. The demonstrator toggled overlays off and on, showing the spread of weather and fire across the landscape. The company hopes their technology will be used in the future to train first responders, as well as workers in manufacturing, health and defense, among other industries.
The new headset aims to tackle some of the problems with the release of its first incarnation—including a narrow field of view and limited range of applications—by expanding the horizontal field of vision from 50 to 70 degrees and reaching out to more potential partners.
The most impressive part of the Magic Leap 2 was optical dimming, which shuts out nearly all light outside the augmented reality elements on the tabletop, drawing users’ focus to the data and cutting down on glare in outdoor environments.

Tilt Five: Immersive Table-Top Gaming
Tilt Five was another popular booth. The startup produces augmented and virtual reality gaming hardware, and has partnered with third party game developers to build software that integrates turns table-top games in AR experiences. The full system includes a game board, a light pair of AR glasses and a control wand.
The company raised over $1.7 million in fan funding on crowdfunding platform Kickstarter. It’s been shipping out completed products to its backers since December and hopes to have them all sent out by the end of the summer. Now, it has set its sights on expanding its offerings.
“We actually just signed with Asmodee Digital, who makes games like Catan, Carcassonne and Gloomhaven,” said Tilt Five Head of Communications Stephanie Greenall. “So we'll be taking a select number of their titles and putting them onto the board.”
Since last year’s AWE conference, Tilt Five has added mixed reality streaming, which allows fans to share their adventures on streaming and social platforms and the “XE Gameboard,” a larger board that tilts up so you can see further into the game.

TikTok Plays Catch Up in AR
About two months ago, TikTok launched Effect House, an AR development platform that plugs right into its mobile app. It’s an attempt to catch up on creative studio applications like Meta’s Spark AR Studio for Facebook and Instagram and Snapchat’s Lens Studio.
Effect House is built on a visual scripting system and a range of popular templates that is meant to make it easier for everyday creators to create their own visuals, without needing to know much about writing code.
According to Greg Feingold, AR ecosystem community lead at TikTok, there are already around 8,000 creators on Effect House’s Discord account, and videos using Effect House have already reached over 1 trillion views.

Fungisaurs: Augmenting Play with Figurines
L.A.-based artist and digital sculptor Aiman Akhtar’s background in 3D modeling and animation at studios including Nickelodeon, Dreamworks and Blizzard prepared him to develop his own line of augmented reality kids’ toys–in the form of small “dinosaur mushroom creatures.”
Fungisaurs started as a collection of real-life plastic toys in 2017, funded partially on Kickstarter. Three years later, Akhtar partnered with augmented reality company Octagon Studio to build ARise, a camera app that brings the physical toys to life and supports interactive play.
Next up for the company is more app integration, card functionality and a second series of characters.
“If we have a card read as well as the object, then we can trigger animations, we can trigger background changes,” Akhtar said. “So we can make narrative board games that can actually convey stories and have more interactivity between players.”
Fungisaurs was one of the only companies at AWE with a product tailored towards kids.

HaptX: Prototype the Training, Not the Product
HaptX, a leading producer in the haptic XR space, makes AR products for customers in training, manufacture, design and telerobotics. The company is based in Redmond, WA with offices in both San Luis Obisbo and San Francisco.
Its development kit, the DK2 Gloves, uses compressed air to simulate resistance by applying braking to the backs of the gloves, up to eight pounds of force per finger and up to 40 pounds per hand. The air contours the shape of the gloves to objects touched in virtual reality worlds.
Recently, HaptX worked with Nissan to mock up its Nissan Leaf electric vehicle virtually. Its system allows designers to touch and interact with the virtual car, obviating the need for wasteful and expensive automotive prototypes, which can cost up to $200,000 per model. HaptX’s gloves, meanwhile, cost in the high five figures for enterprise customers.
HaptX had both a stationary and mobile demo station at AWE. The mobile device was set up in a backpack. One woman trying it out at the Expo said the backpack’s weight was about the same as two MacBooks.
“This will get significantly smaller in the future,” said Victor Oriaifo, an account executive at HaptX.
He said the company aims to shrink the portable device once it’s manufacturing at scale.
***
Watch the main stage presentations on the AWE.Live mobile app ( iPhone/ Android), where the remainder of the sessions will appear by the end of next week. View this article in video form on our TikTok page!
Correction: An earlier version of this story stated that AWE had its first conference in 2013. It was in 2010. It's also been updated to more accurately reflect the number of users on TIkTok's Discord account.
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🔦 Spotlight
Hey LA,
This week’s most interesting story isn’t a flashy new feature, it’s a quieter flex: Snapchat is getting people to pay for Snapchat, on purpose.
Snap just proved “free app” isn’t the only business model
Snap says its direct revenue business is now running at a $1B annualized pace, with 25M+ subscribers paying across a growing menu of products like Snapchat+, Lens+, Snapchat Premium, and Memories Storage Plans. That matters because it’s not just a nice add-on to ads, it’s a different kind of relationship with users. Ads monetize attention. Subscriptions monetize intent.
And intent is sticky. If someone pulls out a card for you, they don’t churn the way an algorithm does.
Creator Subscriptions are the real tell
Snap is also launching Creator Subscriptions, starting with an alpha on February 23 for select U.S. creators, then expanding to Snap Stars in Canada, the U.K., and France in the following weeks. The offer is straightforward: subscriber-only Stories and Snaps, priority replies, and an ad-free experience inside that creator’s Stories.
The strategic move is even simpler. Snap wants “paying for closeness” to happen inside Stories and Chat, not on some external membership page. If they get that right, creators stop treating Snapchat as just a top-of-funnel channel and start treating it like a place to actually monetize their audience. Snap, meanwhile, gets a revenue stream that doesn’t care what CPMs are doing this quarter.
Meanwhile, IRL: lululemon’s Studio Yet.
Lululemon’s Studio Yet. pop-up is running Feb. 18 through March 8 at 8175 Melrose Ave. It’s a ticketed, limited-capacity lineup of workouts and community programming, with proceeds (less fees) supporting BlacklistLA.
Keep scrolling for the latest LA venture rounds, fund news and acquisitions.
🤝 Venture Deals
LA Companies
- Radiant announced a strategic investment from Lockheed Martin via Lockheed Martin Ventures, further oversubscribing the company’s current financing round. Radiant is developing its 1 MW Kaleidos portable nuclear microreactor and says it’s targeting a first reactor startup this summer at Idaho National Laboratory, with initial customer deployments planned for 2028. - learn more
- Mesh Optical Technologies announced it has raised over $50M, led by Thrive Capital, to scale production of its Alpha C1 optical transceiver, which converts electrical signals to light at 1.6 Tbps for AI data centers. The startup says its edge is manufacturing: it builds the optical engine using fast, repeatable flip-chip die bonding to make high-volume, U.S.-based production of optical links possible, backed by a team with experience from SpaceX and Intel.- learn more
LA Venture Funds
- Alexandria Venture Investments participated as an existing investor in Ten63 Therapeutics’ latest strategic financing, which also included participation from Morpheus Ventures and added new backers such as Chugai Venture Fund and the Gates Foundation, bringing total funding to more than $45M. Ten63 says it will use the capital to scale BEYOND, its AI-driven “Large Quantum Chemistry Model” platform for designing small-molecule drugs against historically “undruggable” targets, including programs in oncology and an HPV-focused effort supported by the Gates Foundation.- learn more
- B Capital participated in Code Metal’s $125M Series B, a round led by Salesforce Ventures that valued the company at $1.25B, alongside investors including Accel, J2 Ventures, Shield Capital, Smith Point Capital, and others.Code Metal says it will use the new capital to expand engineering, accelerate product development, grow government and commercial partnerships, and scale go-to-market for its “verifiable” AI code generation and translation platform used in mission-critical environments. - learn more
- Bonfire Ventures co-led Odynn’s $9.5M seed round alongside 8VC, with participation from Khosla Ventures and General Catalyst. Odynn says it’s building personalized AI infrastructure for travel companies, aiming to replace one-size-fits-all booking portals with dynamic experiences that tailor search, recommendations, and conversion flows to each traveler. - learn more
- MTech Capital led Qumis’s $4.3M oversubscribed seed round, which also brought in American Family Ventures as a new strategic investor and pushed total funding to $6.75M. The company says it’s building an attorney-trained AI platform for commercial insurance “coverage intelligence,” and will use the funding to expand go-to-market and deepen product capabilities as adoption grows among large brokers and carriers (including NFP). - learn more
- WndrCo participated in Mansa’s seed funding round, which the company says totaled $12M and was led by MaC Venture Capital. Mansa is now launching a vertical “micro-drama” format inside its app, debuting with the 27-episode original series The Heiress, The Baller & The Secret Society and positioning the feature as a mobile-first way to release serialized stories globally. - learn more
- Alpha Edison co-led Ownwell’s $50M Series B, with Wonder Ventures participating alongside investors including Mercato Partners, Intuit Ventures, Left Lane Capital, First Round Capital, Long Journey Ventures, and PROOF Fund. The round includes $30M in equity and $20M in debt financing from Western Alliance Bank, and Ownwell says it will use the capital to expand nationally and simplify the property-tax appeal process through a new “National Appeals Packet” product. - learn more
- Three Six Zero participated as an existing investor in Hook’s $10M Series A, which was led by Khosla Ventures with participation from Point72 Ventures, Imaginary Ventures, and Waverley Capital, bringing Hook’s total funding to $16M. Hook is an artist-first social platform that lets fans legally remix licensed songs using simple AI-powered tools and share them across social platforms, and it says the new capital will fund user growth plus product expansion like an Android app, richer creation formats, and deeper ecosystem integrations. - learn more
- Overture Ventures participated as an existing investor in Zero Homes’ $16.8M Series A, which was led by Prelude Ventures alongside SJF Ventures and the Exelon Foundation. Zero Homes says it’s using the funding to expand into new markets, broaden its home-upgrade offerings, and grow its contractor network, powered by a smartphone-based “digital twin” approach that produces upgrade designs and pricing remotely. - learn more
- Rebel Fund participated in Sphinx’s $7.1M seed round, which was led by Cherry Ventures alongside Y Combinator, Deel Ventures, and Singularity Capital. Sphinx is building browser-native compliance agents that work inside banks’ and fintechs’ existing tools to automate AML, KYC, and KYB work, with the new funding earmarked to scale that “agentic compliance workforce.” - learn more
- Matter Venture Partners led ChipAgents’ oversubscribed $50M Series A1, bringing total capital raised to $74M, with participation from existing investors Bessemer Venture Partners, Micron, MediaTek, and Ericsson. ChipAgents says it will use the new funding to scale its agentic AI platform for chip design and verification, expand engineering and research, and accelerate global deployment of multi-agent “chip teams,” alongside a new HQ buildout in Santa Clara. - learn more
- MemorialCare Innovation Fund participated in SpendRule’s $2M round, which was led by Abundant Venture Partners with additional backing from Zeal Capital Partners. SpendRule is emerging from stealth with an AI-driven platform that helps hospitals validate invoices against complex contract terms before payments go out, aiming to reduce overspending and “contract leakage” across purchased services. The company says early customers include health systems like MemorialCare, Kettering Health, and MUSC Health. - learn more
LA Exits
- Fred Segal is being acquired by Aritzia, which is buying the brand’s rights/IP (terms not disclosed) and planning a revival under its ownership. Melrose Avenue is central to the deal too, since Aritzia is also taking a lease on Fred Segal’s iconic ivy-covered site at 8100 Melrose as part of the comeback plan. - learn more
- The Expert is being acquired by Havenly in an all-equity deal (terms not disclosed), bringing The Expert’s high-end virtual designer consultations and trade-oriented marketplace into Havenly’s broader home and commerce ecosystem. Lee Anne Blake will join Havenly as chief commercial officer, and while The Expert will remain a standalone website, Havenly plans to plug in its tech to strengthen The Expert’s purchasing and procurement tools for designers. - learn more
Valar Atomics Wants to Power AI, Literally
🔦 Spotlight
Hello, Los Angeles.
This week’s spotlight belongs to a startup chasing one of the biggest and messiest questions in tech right now: where all the power for AI is actually supposed to come from. El Segundo-based Valar Atomics, founded by Isaiah Taylor, is reportedly raising $450 million at a $2 billion valuation to build clusters of small nuclear reactors aimed at powering data centers and other energy-hungry industrial sites.
That is not a subtle ambition. On its website, Valar says it wants to build “hundreds of nuclear reactors” on what it calls gigasites, focusing on grid-independent products including data center power, hydrogen, heavy industrial power, and clean hydrocarbon fuels. Its reactor approach is based on high-temperature gas reactor design principles using TRISO fuel, and the company is explicitly pitching its model as a way to meet the surge in power demand coming from AI.
Valar’s investor roster also helps explain why the company has drawn so much attention. The startup is backed by Palmer Luckey and Palantir CTO Shyam Sankar, and its earlier $130M round in November 2025 was led by Snowpoint Ventures.
What makes the story especially interesting is that this is not just another AI infrastructure company talking about faster chips or more efficient software. It is a bet that the next bottleneck is electricity itself, and that the winning response might look a lot more like hard infrastructure than cloud optimization. In a market full of startups promising to power the future metaphorically, Valar is making a much stranger and bolder claim: it wants to do it literally.
The company is also moving with unusual speed. Valar says it has been selected by the U.S. Department of Energy to achieve criticality on American soil by July 4, 2026 under the administration’s accelerated nuclear program, and related company materials tie its Project NOVA work to the Nuclear Reactor Pilot Program. Whether that timeline proves realistic or not, it tells you something important about the kind of company this wants to be: not a distant science project, but a startup trying to force nuclear power onto AI’s timetable.
And maybe that is the bigger LA angle here. For all the conversation around software, content, and consumer apps, Southern California keeps producing founders who are drawn to the hard stuff: defense, aerospace, energy, logistics, real-world systems with real-world constraints. Valar may still have plenty to prove, but it is hard to accuse this one of thinking small.
Now onto this week’s LA venture deals, fund announcements and acquisitions.
🤝 Venture Deals
LA Venture Funds
- Matter Venture Partners participated in Anvil Robotics’ $5.5M seed round, which it led and which also included Humba Ventures, DNX Ventures, Vivek Sodera, Spacecadet Ventures, and Position Ventures. Anvil said it is building a kind of “Legos for robots” platform for physical AI teams, with open-source custom robots that can ship in one to two days, and has already delivered more than 100 units globally while surpassing seven figures in revenue. - learn more
- WndrCo led daydream’s $15M Series A, backing the AI-native SEO agency alongside First Round Capital and Basis Set Ventures. daydream said the round brings total funding to $21M and will be used to accelerate hiring, product development, and go-to-market expansion as it combines SEO agents with human experts to help companies navigate both traditional search and AI search. - learn more
- Embark Ventures participated in Via Separations’ $36M funding round, which also brought in new strategic backing from Climate Investment, Aramco Ventures, and Marathon Petroleum Corporation. Via said the capital will help deploy more commercial projects and expand its membrane-based industrial filtration platform into refining and chemicals, building on commercial traction in pulp and paper and a pilot completed at a major Gulf Coast refinery. - learn more
- Finality Capital Partners co-led Alien’s $7.1M round alongside Initialized, backing the company’s push to build identity infrastructure for both humans and AI agents. According to the X post announcing the raise, Alien plans to use the funding to develop unique identity systems at a time when proving whether an entity online is human or agentic is becoming increasingly important. - learn more
- M13 participated in OpenFX’s $94M Series A, as the company builds API infrastructure for global FX liquidity. OpenFX said it now moves more than $45B a year across borders, settles 98% of transactions in under 60 minutes, and plans to use the funding to expand its institutional-grade, API-first platform for cross-border payments and treasury operations. - learn more
- M13 led Jimini Health’s $17M seed round, backing the company alongside Town Hall Ventures, LionBird, Zetta Venture Partners, and OneMind as it builds a clinician-supervised AI platform for behavioral health. Jimini said the funding will help scale Sage into more care settings and deepen partnerships with major behavioral health providers across the U.S., positioning it as a safer alternative to unsupervised consumer AI tools for mental health support. - learn more
- MANTIS Venture Capital participated in depthfirst’s $80M Series B, which was led by Meritech Capital and also included Forerunner Ventures, The House Fund, Accel, Box Group, Liquid 2 Ventures, and Alt Capital. The company said the new funding will be used to train additional security models, grow its AI research team, and scale enterprise adoption as it builds an AI-native platform for software security and launches its first in-house security model. - learn more
- Freeflow Ventures participated in TippingPoint Biosciences’ $4.5M seed round, joining SOSV, LKS Fund, Sazze Partners, StoryHouse Ventures, Sontag Innovation Fund, BrightEdge, XEIA Venture Partners, West Coast Angel Network, and others. The company said the financing will help de-risk its epigenetic discovery platform as it works to translate chromatin biology into new therapeutics. - learn more
LA Exits
- Warner Music Group agreed to acquire Revelator, a B2B music platform focused on digital distribution, rights management, royalty accounting, and real-time analytics for independent labels, artists, and distributors. WMG said the deal will strengthen its distribution and label services business, expand the tools available through its labels and ADA, and allow Revelator to keep serving its existing customers while scaling through WMG’s global infrastructure. - learn more
- Omni Agent Solutions has been acquired by Fortress Investment Group, which said the deal will provide long-term capital and resources to expand Omni’s tech-forward platform for bankruptcy and restructuring case administration. Omni said the investment will support continued technology development and scale across services such as claims management, noticing, solicitation support, securities services, disbursements, and call center operations, while its executive and operational teams remain in place. - learn more
- Apium Swarm Robotics is being acquired by Red Cat, adding its distributed control technology for autonomous swarming drones and uncrewed surface vessels to Red Cat’s broader defense platform. Red Cat said Apium will continue operating independently while its autonomy stack is integrated across the business to strengthen coordinated multi-agent operations in contested and communications-degraded environments. - learn more
- HOPWTR is being fully acquired by Constellation Brands, which first invested in the non-alcoholic sparkling water brand through its venture arm in 2021. Constellation said the deal strengthens its no- and low-alcohol portfolio as consumer demand in the space grows, while HOPWTR is expected to keep operating as it does today in the near term with CEO Jordan Bass remaining involved. - learn more


