Can AI Change How Hollywood Structures Stories? Corto.ai is Launching to Find Out

Sam Blake

Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake

Can AI Change How Hollywood Structures Stories? Corto.ai is Launching to Find Out

Having watched his reputation flourish upon a foundation of self-spun fabrications, then crumble into a heap of infamy that led him to change his name, Yves Bergquist knows a thing or two about stories.

As detailed in a November 2019 story in The Hollywood Reporter, Bergquist, who leads artificial intelligence (AI) projects at USC's Entertainment Technology Center (ETC), was formerly a national security analyst and ABC News consultant named Alexis Debat. Once his lies were exposed, he left Washington D.C. in 2007, shrouded in shame.


Now, Bergquist is set to go public with Corto, his previously stealth-mode startup that uses AI to help storytellers in the entertainment industry better understand their content, their operations, and their audiences. Since 2016, Corto has worked symbiotically with the ETC, a think tank founded in 1993 by Star Wars creator George Lucas to support cooperative technological advancement in Hollywood.

As the THR story conveyed, Bergquist seems genuinely contrite. He has embraced working extra hard to overcome his tarnished past and salvage his integrity.

"This is a very sensitive thing for me," he told dot.LA. "Twelve years later it's still haunting."

With the coronavirus indefinitely shutting down production and threatening to erode disposable incomes, Bergquist's comeback may be just in time to help Tinseltown recover from a looming downfall of its own.

Introducing Corto

Even in normal times, says Bergquist, Hollywood faces challenges. With front-loaded costs and lengthy investment timelines, it's an inherently risky industry. And Hollywood's customers have unique expertise in the products they consume.

"Cars and yogurt don't deal with car and yogurt experts," he said. "Media sells to customers who are extremely experienced and knowledgeable about the product of media."

Taking a page out of philosopher Yuval Noah Harari's book, Bergquist waxes poetic on the idea that religion, nationality, and modern economies all rely on collective buy-in to stories.

"They're the most important objects in human civilization," he said. "They're the reason we have a society."

Put that way, it's no wonder that people crave stories; and that many seek to profit from satisfying that craving. Indeed, as technology has progressed, the variety and volume of content platforms and stories at our fingertips has exploded.

Where Corto comes in, is to help storytellers–and story sellers–meet that demand and stand out against that competition.

The end goal, according to Bergquist: "Better understand what resonates with whom, and why."

Modern medicine offers a useful analogy. Previously, Bergquist explains, doctors made diagnoses with little information.

"Say you (were to) walk into my office. You seem to have a fever, your tongue is white. Those generally are associated with cold or bronchitis. So there's your diagnosis."

Compare that to modern healthcare, which empowers physicians to collect far more sophisticated and useful information. And soon enough, pundits forecast a new era of medicine, where tech-enabled lifestyle data merge with a patient's medical history, genetics, and more to provide the granular insights needed for personalized healthcare.

"It's the same thing for entertainment," said Bergquist.

So how does Corto aspire to bring about a new era of stories?

The What: Content Genomics

Essential to Corto is its database of stories that it has thoroughly analyzed using several AI techniques. Like a submarine, Corto probes the depths of a story at a level and speed that a human brain cannot, and extracts the extent to which the story contains certain features, including dozens of "emotional tonalities" like melancholy, power, and generosity. Soon, Bergquist says, Corto will be able to extract additional deep features, like those related to specific characters and the story's structure.

For now, Corto's value starts with what it can tell a user about a script that's not in its database.

Bergquist showed dot.LA how it works, using Ad Astra as an example. He expressed that the interface, while functional — and actively used by a "major studio" for the past several months — is in early form, and that the feature set is still just about "5% of the vision."

When a user uploads a script, Corto takes about five seconds to "parse" the document. Then, like a doctor receiving a patient's genetic readout, new doors suddenly open.

Corto has parsed the script, in this case Ad Astra

Typing "emotion for AD ASTRA" in the command bar brings up a table of dozens of those emotional tonalities, each with a score from 0-100. Anything in the 25-75 range is a weak signal, Bergquist explained, meaning that particular emotion is not especially prominent in the script. Scores below 25 suggest a notable absence of the given emotion, while those above 75 indicate a strong presence.

Corto emotional tonality output

The command "comps for AD ASTRA" yields a list of titles from the Corto database that are similar to the given title based on the deep features that Corto has unearthed. The lower a title's "distance" from another, the more similar they are. "Comp emotion" breaks down these comparisons across each of the dozens of emotional tonalities. Search results can be filtered, such as by type (movie, TV episode, etc.), release year, or country.

Comps for Ad Astra


Ad Astra comps across emotional tonalities

Importantly, these results can reveal unexpected similarities. The comparable titles that Corto yielded for a test user's spy procedural show, for instance, surprisingly included several Sci-Fi titles, said Bergquist.

"Suddenly," he said, "there's a whole new audience that they could potentially market this to."

In the future — later this year, according to Bergquist — Corto will add visual analysis to its text parsing. On top of exploring a script's depths, it will also be able to extract insights from video.

"We want to create a tool," Bergquist explained, "that essentially understands how specific human emotions or narrative structures are expressed visually and from a sensory perspective."

It would function similarly to what Corto currently does with scripts, except it would turn audiovisual footage, rather than text, into data and insights.

Parsing video footage

Encoding and labeling the various elements of video would also theoretically increase pre- and post-production efficiency. For example, explained Bergquist, a film editor could say, "'Show me all the times when a female character was smoking a cigarette in the rain' — things like that. You cannot search content like that currently."

And the content comparisons this would enable–based on attributes that do not exist in a script–would also help to improve recommendation algorithms, which Bergquist describes as the "big kahuna" for Corto's content analysis.

Whether the purpose is to identify just the right title for someone to watch next, or to successfully execute a finely targeted marketing campaign based on a title's comparables, one needs insight not just about the content, but also the audience.

The Who: Audience Genomics

"It's not just, 'okay, people liked Avengers, so they'll probably like this'," Bergquist said. "It's 'why did they like it? What did they like about it? Who liked which attributes?'"

To find these answers, Bergquist explained, Corto probes the wide world of social media.

By analyzing Tweets, Reddit posts and such that are related to a given title, and using analytical methods similar to those used for the content analysis, Corto "can derive positive or negative sentiment for a title based on attributes like the acting, the cast, the director, visual elements, emotional tonalities, the music, the plot and more."

Using a method called knowledge representation to pair this granular data with broader datasets like census data and voting behavior can provide a detailed picture of who these groups are, and where to find them.

"If you give us a script we'll give you all the zip codes where each narrative domain and/or character will resonate the most," Bergquist said.

What's more, Corto layers in network analysis, so that on top of knowing what resonates with whom, and where they are, it also shows how sentiment travels from one group to another. Particularly useful is the identification of "swayable" communities–those whom Corto believes are not yet fans of a given title, but could be converted. Armed with the knowledge of what titles and attributes have historically resonated with such a group, "these are the communities that you can target as a marketer."

"Since we have content analysis integrated directly with audience analysis," Bergquist summarizes, "we can run your script, get a list of comparables, then immediately give you deep insights on the size and type of audience for your script, directly based on millions of social media conversations across all the places where people talk about media."


Helping Hollywood

Though Bergquist shared plenty with dot.LA, he showed a practiced guardedness when asked about specific customers and pricing.

"I would love to tell you everything," he said, "but I would get sued into oblivion if this stuff was identified. Working with Hollywood is like working for the CIA."

He did share, however, that two studios have currently licensed Corto, with a third set to sign up soon. He declined to provide pricing information.

Corto is not the only AI-for-storytelling game in town. Cinelytic, also L.A.-based, uses AI for film analytics and project management. The firm, founded in 2013, recently inked a deal with Warner Bros. And StoryFit, which is headquartered in Austin but does most of its business in Los Angeles, has found some success licensing its tools which, like Corto, include elements of natural language processing (NLP) and sentiment analysis to analyze scripts.

"Marketing is frequently our first stop when we're introduced to a studio, because they're used to using data," StoryFit Chief Executive Monica Landers told dot.LA. "But we're really a better fit during development."

This often entails helping creatives avoid what Landers calls "red flags."

"You may want a character to be intelligent," she explains as an example, "but our analysis will show that she's actually speaking less intelligently than other characters. Or we can surface that your script is too flat. Or that the balance of dialogue and action is off."

StoryFit does a variety of projects, ranging from focusing on one script to a broader landscape analysis. Landers says customers include large and mid-size studios, and networks.

"Annual subscriptions range for most studios from $5,000 - $40,000 a month," she said.

"We've taken a radically different approach," claimed Bergquist. "As a result, we're able to output much deeper insights from a much wider dataset."

AI Skepticism

"My feeling about using NLP on scripts, is there's just so many places that can go wrong," said Brian Dolan, who formerly managed NLP analytics as director of research at MySpace and with the CIA, and is now Chief Executive of LA-based AI venture accelerator Verdant.ai.

"I'm skeptical it'll hit two marks," he told dot.LA. "I don't think it'll get to the sophistication where it can (predict performance), and more importantly, I'm not sure it can reach a level of sophistication where it can be tested – how do we know where it's making a mistake?"

"That's on top of whether machines should (even) be trying to analyze content," Dolan continued. "Aren't we humans making stories for other humans? Who benefits? The finance department – not the audience."

"Look, this isn't a silver bullet," retorts Bergquist. "And it's going to be a long time until it is. What this is, is a set of powerful tools to give development and marketing executives a lot more context and data than was previously available."

"Tens of billions of dollars are being spent every year making and marketing media content," he wrote. "If we can optimize even 5% of that – and it's likely we could do even more, from what our initial tests tell us – that's an enormous amount of money."

Neither CEO denied that what they are aiming to do is hard. And they both recognize that appealing to the community that will ultimately use these tools is crucial. To that end, each emphasized that what they seek to do is not replace people and processes, but augment them. Bergquist points out that Corto has the advantage of having been developed with a high degree of Hollywood input through ETC members, which include most major studios.

In the future, Bergquist believes Corto can reach the sophistication that's needed to make predictions about a story's bottom line. For now, he is taking it slow.

"The last thing the AI field needs is more buzz."

Knowing full well what can happen when a story gets out of hand, Bergquist appears to be ratcheting up the caution in his personal comeback sequel.

"What bit me in the ass in my last career is I created a story that was false," he reflected.

Time will tell how his story this time around lands with his own target audience.

---

Sam Blake covers entertainment and media for dot.LA. Find him on Twitter @hisamblake and email him at samblake@dot.LA

https://twitter.com/hisamblake
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🛰️LA Is Emerging as a Space Powerhouse—And Investors Are Lining Up

🔦 Spotlight

Hello, Happy Friday!

This week, Los Angeles proved once again why it's at the center of space, tech, and innovation. From a major satellite funding round to a big push for wildfire relief, the city is making moves across multiple industries.

K2 Space Lands $110M to Build High-Power Satellites

Image Source: K2 Space

Torrance-based K2 Space just raised $110 million in Series B funding, co-led by Lightspeed Venture Partners and Altimeter Capital. The company, which has now secured $180 million since its launch in 2022, is working on high-power, multi-orbit satellites designed to make space operations more efficient and affordable.

With a new 180,000-square-foot facility in Torrance, K2 is scaling up production—and a successful in-space demo proves they’re on the right track. As demand grows for more powerful satellites, this funding puts them in a strong position to compete.

True Anomaly Expands into Long Beach

LA's space industry is scaling fast, andTrue Anomaly is the latest company to plant roots in Long Beach. The defense tech startup is opening a 90,000-square-foot facility to develop next-gen space security and reconnaissance systems.

Of that, 70,000 square feet will be dedicated to engineering and production, while the remaining space will house office and R&D teams. With more satellites playing key roles in national security and commercial operations, True Anomaly’s expansion positions it right where it needs to be—close to top aerospace talent and major government clients.

Apple Unveils iPhone 16e

Image Source: Apple

Apple has added a new model to its lineup with the iPhone 16e, a budget-friendly but powerful option. Priced at $599, it includes:

  • A18 chip with Apple Intelligence
  • 48MP 2-in-1 camera system
  • 6.1-inch Super Retina XDR OLED display
  • Face ID, replacing the classic home button

Pre-orders start February 21, with availability beginning February 28. Apple is positioning the 16e as a mid-tier option that brings AI-driven capabilities to a wider audience without the premium price tag.

TikTok Returns to U.S. App Stores

After a brief removal,TikTok is back on Apple and Google app stores following a delay in enforcement of a potential national ban. The White House assured tech platforms they won’t face penalties for keeping the app available, at least for now.

For creators, brands, and businesses that depend on TikTok, it’s a relief—but the platform’s long-term future in the U.S. is still up in the air.

FireAid Distributes $50M for Wildfire Relief

Image Source: Fire Aid

While LA’s tech industry looks ahead, major efforts this week focused on immediate recovery.FireAid announced $50 million in wildfire relief grants to support Los Angeles communities impacted by the recent devastating wildfires.

The first round of grants will help local nonprofits and organizations providing housing, financial assistance, essential goods, and emergency support to those affected. Some of the initial recipients include:

  • United Way of Greater Los Angeles – Providing direct financial aid and community-based recovery efforts.
  • Baby2Baby – Supplying essential goods to families and children impacted by the fires.
  • CA Community Foundation’s Wildfire Relief Fund – Supporting emergency relief and long-term recovery.
  • LA Fire Department Foundation – Assisting first responders with wildfire-related resources.
  • Meet Each Need with Dignity (MEND) – Providing emergency food, housing, and job resources for displaced individuals.

FireAid’s benefit concert, which drew millions of viewers worldwide, has continued to raise funds, with additional grants expected to roll out in the coming months to further aid recovery and rebuilding efforts.

LA Isn't Just Keeping Up With the Future—It's Defining It.

From major investments in space and national security to new consumer tech and philanthropic efforts, LA is proving its influence across industries. The question isn’t what’s happening here—it’s what’s happening next.


🤝 Venture Deals

LA Companies

  • CREE8, a company offering a centralized virtual workspace with on-demand, high-performance workstations, secure storage solutions, and real-time collaboration tools for creatives, has received an investment from Moneta Ventures. The funding will be used to enhance its platform capabilities and expand its market presence, providing seamless workflows for creators and professionals in need of cloud-based creative solutions. - learn more
  • Breakthrough, an AI-driven startup founded by former Google executive Adit Abhyankar, has secured a $600,000 Pre-seed funding led by Senvest Capital. The company specializes in enhancing B2B sales messaging by optimizing content in real-time through its self-learning AI platform. The funds will be used to expand Breakthrough's enterprise client base, explore applications beyond traditional sales outreach, and refine the product to better align with market needs. - learn more
  • UVIONIX, a robotics and automation startup specializing in AI-powered autonomous flying robots for warehouse inventory management, has secured a $3.5M Seed funding led by LAUNCHub Ventures. The investment will accelerate UVIONIX's product release, expand its presence in the U.S. and Europe, and support the growth of its AI and engineering teams in Bulgaria and the U.S. - learn more
LA Venture Funds
  • March Capital participated in a $305M Series B funding round for Together AI, a San Francisco-based company specializing in providing a cloud platform for developers and researchers to train and deploy generative AI models. The funds will be used to expand Together AI's cloud infrastructure, including the large-scale deployment of Nvidia Blackwell GPUs, to support over 200 open-source models and serve its growing user base of more than 450,000 AI developers worldwide. - learn more
  • Amboy Street Ventures participated in a $12M Series A funding round for Millie, a San Francisco-based tech-enabled maternity clinic. Millie offers comprehensive, patient-centered maternity care, integrating clinical best practices with digital tools to support individuals from conception through postpartum. The funds will be used to expand Millie's technology platform, enhance service offerings, and open new clinics, starting with a collaboration in California in 2025. - learn more
  • StoryHouse Ventures participated in a $4.3M Seed funding round for Henry AI, a company specializing in automating commercial real estate transactions. Based in New York, Henry AI uses AI-powered technology to streamline real estate deal execution. The funds will be used to enhance its platform and expand its capabilities, making commercial real estate transactions more efficient and scalable. - learn more
  • Amplify.LA participated in a $6.2M Seed funding round for Mavvrik, an Austin-based FinOps platform formerly known as DigitalEx. Mavvrik helps organizations manage and optimize IT expenditures through advanced financial operations solutions. The funds will be used to enhance its platform capabilities, addressing rising IT costs and improving financial efficiency for its clients. - learn more
  • Generational Partners participated in a $4M Pre-seed funding round for Everstar, a company specializing in AI-driven solutions for nuclear compliance. The funds will be used to develop Everstar's platform, aiming to enhance safety and efficiency in the nuclear energy sector. - learn more
  • Watertower Ventures participated in a $1.2M pre-seed funding round for Glassbox, a Toronto-based fintech startup developing an AI-compatible financial analysis platform. The funds will be used to expand Glassbox's team and bring its platform to market, aiming to transform traditional spreadsheet-based workflows into more efficient, transparent, and AI-driven processes. - learn more
  • March Capital participated in a $75M Series C funding round for Luminance, a Cambridge, UK-based legal technology company specializing in AI-powered contract generation, negotiation, and analysis. The funds will be used to accelerate Luminance's global expansion, particularly in the U.S., and to enhance its AI platform, extending its applications to adjacent areas such as procurement and compliance. - learn more
  • Rebel Fund participated in a €17.2M Series A funding round for Capi Money, a London-based FinTech startup specializing in streamlining international payments for SMEs in emerging markets. The funds will be used to scale Capi Money's platform, enabling small and medium-sized importers in regions like Africa, Latin America, and China to pay international suppliers more efficiently. - learn more
  • Group 11 participated in a $100M Series B funding round for Dream, an AI company based in Tel Aviv, Israel, specializing in cyber resilience solutions for nations and critical infrastructure. The investment, led by Bain Capital Ventures, will be used to enhance Dream's product capabilities and expand its global market reach, aiming to bolster national cybersecurity defenses against sophisticated threats. - learn more
  • B Capital participated in a $320M Series C funding round for Lambda, a San Jose, California-based company specializing in GPU cloud services for AI applications. The funds will be used to expand Lambda's AI cloud business, including their on-demand and reserved cloud offerings, to meet the growing demand for AI infrastructure. - learn more
  • B Capital co-led a $350M Series A funding round for Apptronik, an Austin, Texas-based company specializing in AI-powered humanoid robots. The investment will be used to scale the production of their humanoid robot, Apollo, designed for tasks in logistics and manufacturing sectors. Apptronik plans to expand Apollo's capabilities to other industries, including elder care and healthcare. - learn more
  • Upfront Ventures led a $7.5M Seed funding round for Keragon, a New York City-based company providing an AI-powered, HIPAA-compliant automation platform for healthcare. The funds will be used to expand operations and development efforts, enabling healthcare professionals to integrate over 300 software tools—including electronic health records, scheduling platforms, and AI medical scribes—without requiring engineering expertise. This integration aims to streamline data exchange, reduce administrative burdens, and safeguard patient information. - learn more
  • Blue Bear Capital participated in a $16M Series B funding round for ACCURE Battery Intelligence, an Aachen, Germany-based company specializing in AI-based battery safety and performance solutions. The funds will be used to expand ACCURE's predictive analytics software offerings across Europe, the Americas, and the Asia-Pacific regions, addressing the growing demand for enhanced battery safety and reliability in energy storage systems and electric vehicle fleets. - learn more
  • Clocktower Ventures participated in a $6.2M Seed funding round for Era Finance, a company specializing in AI-powered personal wealth management solutions. The funds will be used to expand Era's 'wealth-care' platform, aiming to make advanced financial intelligence accessible to a broader audience. - learn more
  • Climate Avengers participated in a $25M Series B funding round for Mast, a company specializing in restorative carbon removal projects. The funds will be used to launch a first-of-its-kind biomass burial and reforestation project, aiming to enhance carbon sequestration and combat climate change. - learn more
  • Clocktower Ventures participated in a $5M Seed funding round for Vigil, a New York-based insurtech startup specializing in annuities. The funds will be used to expand Vigil's platform and enhance its services in the annuities market. - learn more
  • Finality Capital Partners co-led a $7M Seed funding round for Fragmetric, a company specializing in native liquid restaking protocols on the Solana blockchain. The funds will be used to enhance Fragmetric's platform, focusing on efficient distribution of Node Consensus Network rewards and determining appropriate slashing ratios for Liquid Staking Tokens, thereby strengthening the security and economic potential of the Solana ecosystem. - learn more

      LA Exits

      • Guidance, a leading digital commerce services provider, has been acquired by OneMagnify, a global marketing and technology solutions company backed by Crestview Partners. This strategic acquisition aims to enhance OneMagnify's digital experience and eCommerce capabilities, enabling the combined entity to offer comprehensive, data-driven digital solutions to their clients. - learn more
      • Maple Media, a leader in mobile app publishing with a diverse portfolio of "Top 10" apps across productivity, entertainment, and lifestyle categories, has been acquired by Skybound Entertainment. This acquisition aims to enhance Skybound's reach by integrating Maple Media's stable revenue, proprietary app management technology, and direct consumer relationships, thereby expanding Skybound's audience and engagement. - learn more
      • Prima, a science-backed wellness brand specializing in clean and clinical CBD skincare and body care, has been acquired by Sky Marketing Corporation, a Texas-based house of hemp brands. The acquisition will allow Prima to expand its reach and continue its mission of delivering high-quality, plant-based wellness solutions under Sky Marketing's portfolio. - learn more

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        🏈Snapchat’s Super Bowl Push & Apple’s New App 📲—Here’s What’s New

        🔦 Spotlight

        Hello, Los Angeles!

        With Super Bowl LIX coming up this Sunday, the buzz isn’t just about the Chiefs vs. Eagles matchup—it’s also about how tech is shaping the experience. From Snapchat’s interactive game-day features to Apple’s latest product launch, there’s plenty happening beyond the field.

        Snapchat’s Super Bowl Features

        If you're watching the game, chances are you’ll be on your phone just as much as your TV. This year, Snapchat is rolling out AR Lenses, live score updates, and Spotlight challenges to make game day more interactive. Want to try on your team’s jersey? There’s a Lens for that. Need real-time updates? Snap has them covered. Attending the game in New Orleans? Live Location can help you track down friends in the crowd. As the second-screen experience becomes more ingrained in live sports, Snap is making sure it’s front and center.

        Snap’s New Initiative: The Department of Angels

        Super Bowl Sunday is about competition, but what happens when the challenge isn’t on the field? Yesterday, Snap announced The Department of Angels, a new initiative aimed at supporting communities recovering from disasters, offering independent funding and resources to help them rebuild on their own terms. Backed by $10 million from Snap Inc., Evan Spiegel, Bobby Murphy, and the California Community Foundation, the program shifts away from traditional corporate donations and toward grassroots, community-led recovery efforts. Could this be a model for how tech companies engage with real-world crises in the future?

        Apple Wants to Change How You Send Invites

        Apple is stepping into the event invite space with Apple Invites, a new app designed to make organizing gatherings simpler. Competing with platforms like Partiful and Evite, Apple’s version integrates directly into iMessage and Apple Calendar, making it an easy, built-in option for Apple users. With so many invite platforms out there, will Apple’s streamlined approach become the go-to for iPhone users, or will it simply be another tool in the mix?

        Where to Watch Super Bowl LIX

        The Chiefs and Eagles face off this Sunday at 3:30 PM PT on FOX. Here’s a helpful link to directly access ways to watch. You can stream the game for free on Tubi, or catch it on YouTube TV, Hulu + Live TV, NFL+, and fuboTV. And of course, we’ll be watching to see which brands—including tech giants—deliver the most memorable ads of the night.

        Between Snap’s game-day integrations, its push to support community-led recovery, and Apple’s move into digital invites, this week is full of shifts in how we connect. Which of these will redefine the way we interact? We’ll be watching.

        🤝 Venture Deals

        LA Companies

        • Musical AI, a company specializing in rights management for generative AI music, has raised a $1.5M seed funding round led by Build Ventures. The investment will support the development of Musical AI's attribution model, which analyzes tracks to determine the contribution of various data sources in AI-generated music. This enables rightsholders to monitor and manage the use of their works, while providing generative AI companies with access to quality licensed data and detailed usage reports. - learn more

        LA Venture Funds
        • Fika Ventures participated in a $16M Series A funding round for Ivo, a San Francisco-based AI-powered contract review platform, bringing its total funding to $22.2M. The company plans to use the funds to scale its AI-driven contract review solutions and has launched the Ivo Search Agent to enhance contract search and analysis capabilities. - learn more
        • Freeflow Ventures participated in a $7M seed funding round for Miist Therapeutics, a Bay Area-based company specializing in physics-based inhaled medicines. Miist plans to use the funds to advance its two lead programs: MST-01 for smoking addiction and MST-02 for migraine treatment. Their proprietary inhaler delivers sterile aqueous drug particles to the peripheral lung, achieving rapid absorption and symptom relief. - learn more
        • Fiore Ventures participated in a $9.5M strategic funding round for Little Otter, a digital mental health care provider specializing in whole-family services. The company plans to use the funds to expand its services to reach millions of families covered by Medicaid and commercial insurance plans, leveraging an AI-powered platform to enhance patient triage and personalized care. - learn more
        • Arca participated in a $13.5M Series A funding round for Beamable, a company specializing in providing live game services for game developers. The funds will be used to expand Beamable's decentralized gaming infrastructure and enhance its platform offerings. - learn more
        • Village Global participated in an $8M seed funding round for Desteia, a company leveraging AI and graph theory to address supply chain disruptions. The funds will be used to enhance Desteia's technology and expand its market reach. - learn more
        • TI Capital and QBIT Capital co-led a $7.5M Series A funding round for Largo.ai, a company specializing in AI-driven solutions for the film industry. The funds will be used to enhance Largo.ai's AI-powered platform and expand its market presence. - learn more
        • Strong Ventures participated in a ₩3.5 billion (approximately $2.9M) funding round for Class101, a South Korea-based all-in-one creator content platform. The company plans to use the funds to enhance its 'Creator Home' service, recruit top creators in fields such as economics, side jobs, art, crafts, and careers, and expand corporate subscription services for employee education and welfare. - learn more
        • Village Global participated in a $4M Seed funding round for Perspective AI, a Palo Alto, California-based company specializing in AI-mediated customer conversations. The funds will be used to expand operations and development efforts. - learn more

            LA Exits

            • SpringboardVR, a provider of virtual reality (VR) venue management software and a leading content marketplace for location-based entertainment, has been acquired by SynthesisVR. Previously owned by Vertigo Games, SpringboardVR is known for its platform that enables VR arcade operators to manage content licensing and operations efficiently. With this acquisition, SynthesisVR aims to enhance its offerings for VR arcades and developers, supporting the growth and innovation of the VR industry. - learn more
            • Generation Genius, an educational streaming platform that provides K-8 science and math videos, activities, and lessons, has been acquired by Newsela to enhance its instructional content and strengthen real-world connections in science and math education. - learn more

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              AI Dominates the Headlines, but Defense Tech Is Gaining Speed

              🔦 Spotlight

              Hello, Los Angeles!

              This week, DeepSeekAI has been dominating the tech conversation. The Chinese AI startup’s chatbot app surged to the No. 1 spot on the App Store, drawing both excitement and scrutiny. Supporters see its open-weight model as a potential game-changer, offering developers more flexibility compared to closed AI systems like OpenAI’s. But the rapid rise has also raised questions about security, data governance, and global AI competition. Whether DeepSeek will be a long-term disruptor or just a momentary sensation remains to be seen, but one thing is clear—AI remains the tech industry’s driving force.

              But while AI continues to dominate headlines, another sector is quietly making waves—defense technology. And one LA-based startup just secured a major endorsement from investors and the U.S. government.

              Castelion’s Hypersonic Bet—Can It Outrun the Defense Industry’s Red Tape?

              Image Source: Castelion

              El Segundo-based Castelionjust raised$100 million to accelerate its mission to build hypersonic weapons faster, cheaper, and at scale. The financing—$70 million in equity (led by Lightspeed Venture Partners with participation from a16z, Lavrock Ventures, Cantos, First In, BlueYard Capital, and Interlagos) and $30 million in venture debt (from Silicon Valley Bank)—is the latest sign that venture capital sees national security startups as a high-growth opportunity.

              Unlike traditional defense contractors, Castelion is operating like a fast-moving startup, not a slow-moving government supplier. Founded by former SpaceX engineers, the company is applying an iterative, test-heavy approach to building long-range hypersonic strike weapons—which travel at speeds exceeding Mach 5 (3,800+ mph) and are designed to evade modern missile defenses.

              Not Just VC-Backed—The U.S. Military is Betting on Castelion Too

              While the $100 million raise is a major milestone, Castelion already has funded contracts with the U.S. Navy, U.S. Air Force, and U.S. Army. These contracts are focused on hypersonic technology development and scaled manufacturing, areas where the military has struggled to move quickly due to bureaucratic delays and reliance on traditional defense giants.

              To prove it can execute, Castelion recently successfully launched a low-cost ballistic missile from a self-built launcher in Mojave. Now, with both government contracts and venture capital behind it, the company is pushing forward on more flight tests and building out its scaled production capabilities.

              Image Source: Castelion - Castelion launches a missile prototype in Mojave, CA

              With rising geopolitical tensions and an increasing focus on faster, cost-effective deterrence, Castelion is positioning itself as a new kind of defense player—one that moves at startup speed. Whether it can sustain that pace while navigating the complexities of government procurement remains to be seen, but one thing is clear: the future of defense tech isn’t just about who can build the best weapons—it’s about who can build them fast enough.


              🤝 Venture Deals

              LA Companies

              • Omnitron Sensors, a Los Angeles-based pioneer in microelectromechanical systems (MEMS) fabrication technology, has secured over $13M in a Series A funding round led by Corriente Advisors, LLC, with participation from L'ATTITUDE Ventures. The company plans to use the funds to expand its engineering and operations teams and accelerate the mass production of its first product, a reliable and affordable MEMS step-scanning mirror designed for various applications, including AI data centers, advanced driver assistance systems (ADAS), drones, extended reality (XR) headsets, and toxic gas-detection systems. - learn more
              • Camouflet, a Los Angeles-based technology company specializing in AI-driven dynamic pricing solutions, has secured a $12M Series A funding round led by QVM. The company plans to utilize the proceeds to scale its platform across various industries, expand into international markets, and enhance its technology and team to better serve its clients. - learn more
              LA Venture Funds
              • Clocktower Ventures participated in a $6.2M Seed funding round for Foyer, a New York-based fintech startup that assists individuals in saving for home purchases. The funds will be used to enhance Foyer's platform and expand its user base. - learn more
              • Smash Capital participated in ElevenLabs' $180M Series C funding round, bringing the company's valuation to $3.3 billion. Based in New York, ElevenLabs specializes in AI-powered text-to-speech and voice cloning technology. The newly secured funds will be used to enhance its AI audio platform and expand its global presence. - learn more
              • March Capital participated in a $25M Series C funding round for SuperOps to support the company's efforts in advancing AI research and development, expanding offerings for mid-market and enterprise managed service providers (MSPs), and scaling its global presence. Additionally, SuperOps is launching an AI-powered Endpoint Management tool to enhance IT team productivity. - learn more
              • Cedars-Sinai participated in a $2M funding round for Neu Health to support its AI-driven neurology care platform for conditions like Parkinson’s disease and dementia. Originating from the University of Oxford, Neu Health will use the funds to enter the U.S. market, beginning with a six-month pilot program at Cedars-Sinai focused on improving neurology patient care. - learn more
              • Chapter One Ventures participated in a $2.8M seed funding round for Mevvy, a blockchain startup aiming to democratize Maximal Extractable Value (MEV) trading by simplifying access and reducing technical complexities. The funds will be used to further develop Mevvy's platform, expand its user base, and enhance its offerings. - learn more

                LA Exits

                • Kona, an AI-powered assistant and coach for remote managers, has been acquired by 15Five, a performance management platform. Founded in 2019, Kona integrates with virtual meeting platforms like Zoom and Google Meet to provide tailored coaching and enablement for remote managers. The acquisition aims to enhance 15Five's offerings by incorporating Kona's capabilities to improve manager effectiveness within existing workflows. - learn more

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