TikTok Timeline Update: The Rise and Pause of a Social Video Giant

Justice Dept. Calls TikTok 'Direct Threat' to Privacy and Security of US
TikTok | Solen Feyissa | Flickr

See our timeline below for key developments TikTok's story over the last 10 years, starting with the founding of ByteDance and moving through the app's rise to popularity and the mounting concerns about data privacy and security.


March 2012: Internet entrepreneur Zhang Yiming founds ByteDance in Beijing.

August 2012: ByteDance launches its first product, Toutiao, an AI-powered news aggregator.

July 2014: Alex Zhu launches Musical.ly, an app that enables users to create short-form lipsync music videos; Musical.ly is headquartered in Shanghai with an office in Santa Monica.

July 2015: Musical.ly hits #1 in Apple app store.

September 2016: ByteDance launches Douyin, an app with similar functionality as Musical.ly; within a year, the Chinese app achieves 100 million users and 1 billion views per day.

September 2017: ByteDance brings Douyin outside of China's Great Firewall under the name of TikTok; the app does well in numerous Asian markets.

November 2017: ByteDance acquires Musical.ly for $1 billion; the company starts operating Musical.ly in the US, Douyin in China and TikTok in other markets.

August 2018: ByteDance merges Musical.ly with TikTok and migrates all user profiles to TikTok; Alex Zhu becomes TikTok senior vice president, saying, "Combining Musical.ly and TikTok is a natural fit given the shared mission of both experiences – to create a community where everyone can be a creator."

October 2018: ByteDance achieves a record $75 billion valuation, making it the world's biggest privately backed startup.

February 2019: Lil Nas X releases "Old Town Road" on TikTok, catalyzing a viral sensation that ultimately reaches #1 on Billboard's charts.

February 2019: TikTok is fined $5.7 million for child data privacy violations.

September 2019: Washington Post reports that TikTok may be censoring protests in Hong Kong.

September 2019: Leaked documents show TikTok instructs its moderators to censor videos that mention various subjects deemed offensive by the Chinese government and Communist Party, The Guardian reports.

October 2019: U.S. Senator Marco Rubio calls on the U.S. government to investigate the national security implications of ByteDance's acquisition of Musical.ly, citing concerns over the Chinese government and Communist Party's use of TikTok to censor content and silence open discussion.

October 2019: U.S. Senators Chuck Schumer and Tom Cotton ask U.S. Acting Director of National Intelligence to assess the national security risks from TikTok and other Chinese-owned apps, and request a congressional briefing on the findings.

October 2019: Alex Zhu begins reporting directly to ByteDance head Zhang Yiming; he had previously reported to the head of Douyin.

November 2019: The U.S. government launches an investigation into ByteDance's acquisition of Musical.ly on the grounds that ByteDance did not seek clearance when it acquired Musical.ly.

TikTok reportedly has 26.5 million monthly active users in the U.S. at this time.

December 2019: The U.S. Defense Department's Defense Information Systems Agency issues a recommendation that military personnel delete TikTok from all smartphones.

Q4 2019: TikTok becomes the most downloaded app in the world and second in the U.S.

January 2020: Several U.S. military branches ban TikTok on government-issued smartphones.

March 2020: U.S. officials reach out to TikTok to discuss political disinformation.

April 2020: TikTok surpasses 2 billion downloads and sets the record for quarterly downloads.

May 2020: Various child privacy groups file a complaint with the U.S. Federal Trade Commission that TikTok is violating the Children's Online Privacy Protection Act (COPPA) and flouting terms agreed to following its February 2019 settlement.

A TikTok spokesperson says the company "takes the issue of safety seriously for all our users, and we continue to further strengthen our safeguards and introduce new measures to protect young people on the app."

May 2020: ByteDance hires former Disney executive Kevin Mayer as chief operating officer and TikTok chief executive officer.

June 2020: Teens organize on TikTok to fool Trump administration into anticipating high attendance for the President's Tulsa, Oklahoma campaign rally.

June 2020: India bans 59 Chinese apps including TikTok, citing national security and data privacy concerns; the move comes amid ongoing skirmishes between the two countries on the China-India border.

July 2020: Australia Prime Minister Scott Morrison launches an investigation into TikTok surrounding data concerns.

July 2020: U.S. Secretary of State Mike Pompeo confirms the U.S. is looking into banning TikTok over concerns the app is sharing data with China; the next day, President Trump says he is considering a ban, framing it as a potential retaliation tactic against China for its handling of the coronavirus pandemic.

Aug. 2, 2020: Microsoft issues a blog post citing a conversation between chief executive Satya Nadella and President Trump around the company's potential acquisition of TikTok.

Aug. 4, 2020: Australia Prime Minister Scott Morrisson says there is not sufficient evidence to suggest a TikTok ban is necessary.

Aug. 6, 2020: President Trump issues an executive order banning American companies from transacting with ByteDance or its subsidiaries, namely TikTok; the U.S. Secretary of Commerce is to identify specific prohibited "transactions" 45 days after the order is issued.

Aug. 14, 2020: Trump issues another executive order demanding ByteDance "divest all interests and rights" in its assets and property that enable TikTok's U.S. operations, and data collected via TikTok in the U.S., within 90 days. The order says the U.S. investigation into ByteDance's acquisition of Musical.ly presented "credible evidence" that ByteDance "might take action that threatens to impair the national security of the United States."

Aug. 17, 2020: Oracle enters the discussion as a reported TikTok suitor.

Aug. 18, 2020: President Trump says he would support Oracle buying TikTok. Oracle's cofounder and CTO Larry Ellison had previously said he supports Trump and had fundraised for him in February 2020.

Aug. 24, 2020: TikTok announces it is suing the Trump administration over the ban for failure to protect due process. Separately, a U.S.-based TikTok employee also sues the administration, stating, "I am a patriot"

Aug. 26, 2020: Kevin Mayer steps down from ByteDance and TikTok, citing a diminished role in a letter to colleagues. Rumors swirl that he was left out of ByteDance's negotiations with potential acquirers

Aug. 27, 2020: Walmart issues a statement that it is interested in partnering with Microsoft to acquire TikTok.

Aug. 28, 2020: L.A.-based Triller, a TikTok upstart competitor, is reported to have issued a bid for TikTok along with investment firm Centricus.

Aug. 29, 2020: The Chinese government issues new export rules that complicate the exportation of TikTok's underlying technology – namely its "For You" algorithm – to any foreign buyer.

Aug. 31, 2020: CNBC reports TikTok has chosen a buyer, with an expected sale price of $20 billion - $30 billion.

Sept. 3, 2020: With uncertainty over whether a buyer will be able to acquire TikTok's algorithm, and debate mounting over how that affects the value of the company, numerous outlets negotiations are likely to slow as the Chinese government increases its involvement.

Sept. 13, 2020: Microsoft says in a blog post that "ByteDance let us know today they would not be selling TikTok's US operations to Microsoft." The company says it would have made "significant changes" to ensure security, privacy, online safety and combatting disinformation.

Sept. 14, 2020: Oracle confirms that it has been selected by ByteDance to become a "trusted technology provider" with TikTok. The company says the proposal was submitted by ByteDance to the Treasury Department over the weekend. Treasury Secretary Steven Mnuchin says on CNBC that the proposal includes making TikTok-global a U.S. headquartered company with 20,000 new jobs.

Mnuchin adds that the Committee on Foreign Investment in the United States is reviewing the proposal this week for national security implications, and will make a recommendation to the president, who will then review the proposal.

Sept. 19, 2020: President Trump tells reporters he approved the deal in concept between Oracle and TikTok's parent company ByteDance, in which Oracle and Walmart would partner with the app in the U.S. The U.S. government postpones a planned ban on TikTok for one week.

Sept. 27, 2020: A federal judge in Washington temporarily blocks President Trump’s order banning TikTok, granting the social media firm a reprieve just hours before it was to be removed from mobile app stores. The judge says Trump’s order was “largely a unilateral decision with very little opportunity for plaintiffs to be heard,” according to the Washington Post.

Oct. 30, 2020: TikTok averts a U.S. ban again after a federal judge in Pennsylvania temporarily blocks restrictions set to take place on Nov. 12—the Trump administration's deadline for ByteDance to close a deal in the U.S.

Nov. 7, 2020: Democrat Joe Biden defeats President Trump in the presidential election, the Associated Press and other media outlets confirm. A few days later, an advisor to President-elect Biden says it is “too early to say” Biden’s thoughts on TikTok.

Nov. 11, 2020: TikTok asks a judge to extend the deadline for its sale by 30 days. The company says it hasn’t heard an update from the administration in weeks.

Nov. 12, 2020: The U.S. Commerce Department says it won’t enforce the sale deadline imposed by Trump’s order "pending further legal developments." The department cites the Pennsylvania ruling from October that found the TikTok crackdown exceeded the government’s power.

Nov. 13, 2020: The U.S. government extends its deadline by 15 days, giving TikTok until Nov. 27 to strike a deal that allays the government’s national security concerns.

Nov. 26, 2020: ByteDance gets another week to sell off TikTok’s U.S. business. A spokesperson for the Treasury Department tells CNBC that the government granted the extension until Dec. 4 “to allow time to review a revised submission” that it recently received.

Dec. 4, 2020: The latest deadline passes without an approved deal to sell TikTok. The Treasury Department says it won’t extend the deadline again, but there are “no plans to enforce anything,” a source tells The Washington Post.

Dec. 14, 2020: The Federal Trade Commission orders TikTok—along with Snap, YouTube, Twitter and other social media and streaming sites—to turn over information about how they collect and use information about users.

Feb. 10, 2021: Newly-inaugurated President Joe Biden slams the brakes on forcing a TikTok sale. In court papers, Biden administration lawyers file a motion to postpone the cases related to a potential ban of the popular social media app.

June 9, 2021: President Biden revokes Trump’s executive order that sought to ban TikTok and replaces it with one that calls for a broader review of foreign-controlled apps that may pose national security risks.

June 25, 2021: CNBC reports TikTok is tightly controlled by Chinese parent company ByteDance. Insiders tell the news outlet that ByteDance has access to TikTok’s American user data and is closely involved in the Culver City company’s decision-making.

July 20, 2021: Pakistan bans TikTok for the fourth time, citing “inappropriate content.” The country lifts the latest ban a few months later.

Sept 27, 2021: TikTok announces that it has surpassed 1 billion monthly active users as the app continues to rapidly rise in popularity.

Oct. 26, 2021: During a public hearing, U.S. lawmakers press Michael Beckerman, TikTok’s head of public policy for the Americas, on whether TikTok’s Chinese ownership could expose consumer data to Beijing. Beckerman says “access controls for our data is done by our U.S. teams,” adding that the data that TikTok collects is “not of a national security importance,” according to the New York Times.

Dec. 17 2021: A Wall Street Journal investigation shows that TikTok’s recommendation algorithm is flooding teens’ video feeds with eating disorder content.

December 2021: TikTok overtakes Google as the most-visited website on the internet.

Feb. 8, 2022: Facing criticism over hosting harmful content, TikTok announces new rules aimed at preventing viral hoaxes, shielding the LGBTQ community from harassment and removing videos promoting unhealthy eating.

February 2022: As Russia invades Ukraine, TikTok is awash in raw footage from the battlefield and false and misleading clips. The war raises fresh concerns about TikTok’s handling of misinformation on its platform.

March 2, 2022: A bipartisan group of state attorneys general launch an investigation into TikTok, examining whether the social media giant is harming children and young adults through the content on its platform.

March 11, 2022: Reuters reports that TikTok is close to a deal to store all of the video-sharing app’s U.S. user data with American software giant Oracle. The partnership is aimed at resolving the U.S. government’s national security concerns.

March 15, 2022: California lawmakers unveil a first-of-its-kind bill to let parents sue social media platforms like TikTok for allegedly addicting children to their apps.

March 31, 2022: Attorneys general from 44 U.S. states and territories urge TikTok and Santa Monica-based Snap to strengthen parental controls on their platforms, telling the social media giants that they must do more to protect kids online.

April 3, 2022: “The Unofficial Bridgerton Musical” wins a Grammy for Best Musical Theater Album. It’s the first Grammy-winning album to originate on TikTok, solidifying the app’s growing influence over the music industry.

April 15, 2022: The Department of Homeland Security and the Department of Justice launch probes into TikTok’s moderation of content depicting child sexual abuse, according to the Financial Times.

April 2022: TikTok is the most-downloaded app in the world during the first quarter of 2022, according to a study from digital analytics firm Sensor Tower.

May 12, 2022: The mother of a 10-year-old girl who died after allegedly trying a dangerous “Blackout Challenge” sues TikTok. The case is one of several to claim the app’s algorithm showed kids and teens videos of people choking themselves until they pass out.

June 17, 2022: BuzzFeed News publishes a bombshell report that TikTok’s data on U.S. users was repeatedly accessed in China by employees of parent company ByteDance. The report raises fresh privacy and security concerns about the Chinese-owned social media app.

The same day, TikTok announces that it migrated all of its U.S. user traffic to servers operated by American software giant Oracle, an effort to assuage concerns that American data could fall into the hands of the Chinese government.

June 28, 2022: In the wake of the BuzzFeed report, Federal Communications Commissioner Brendan Carr urges Apple and Google to remove TikTok from its app stores. Nine Republican U.S. senators send a letter to TikTok with questions about the company’s handling of American data.

June 30, 2022: TikTok responds to Republican lawmakers by detailing its plans on keeping U.S. data out of the hands of Chinese parent company ByteDance. The company’s letter confirms that ByteDance employees in China can access TikTok data, but only when “subject to a series of robust cybersecurity controls” and approvals overseen by its U.S.-based security team.

July 5, 2022: Leaders of the U.S. Senate Intelligence Committee ask the Federal Trade Commission to investigate whether TikTok deceived the public about whether people in China could access American user data.July 29, 2022: Bloomberg reports the Chinese government requested TikTok host stealth, propaganda accounts—a move that TikTok executives denied due to their growing efforts to distance the platform from its Chinese origins.

August 5, 2022: The flood of information coming from within the organization leads TikTok to hire roles meant to prevent internal leaks.

August 11, 2022: A Forbes review of TikTok and ByteDance employees’ LinkedIn profiles reveals that 300 current employees previously worked for Chinese state media publications. Fifteen employees apparently were employed by both at the same time.

August 16, 2022: Oracle begins its audit of TikTok’s algorithm and content moderation process to determine if the Chinese government has interfered with the platform.

August 18, 2022: Developer Felix Krause finds that the app monitors all keyboard inputs and tags, which could record private data like passwords and credit card information. TikTok denies these claims.

September 14, 2022: TikTok Chief Operating Officer Vanessa Pappas appears before the Senate Homeland Security Committee and says its ongoing negotiations with the U.S. government “will satisfy all national security concerns.” Notably, Pappas would not fully commit to cutting off U.S. data flow to China.

September 21, 2022: Former TikTok executives claim they were instructed to follow directions from ByteDance and had limited power to make internal decisions as people question TikTok CEO Shou Zi Chew’s influence.

September 24, 2022: British regulators from the Information Commissioner’s Office (ICO) send TikTok a warning over how the company handles children’s data—a warning that could lead to a $29 million fine.

September 26, 2022: The Justice Department reaches a “preliminary agreement” with TikTok over national security concerns, though details are still being negotiated.

October 12, 2022: A BBC report finds that TikTok profited from refugees collecting donations via the app’s live streaming feature, with some claiming the platform took up to 70% of the profits.

October 20, 2022: A Forbes report reveals that ByteDance intended to use TikTok to monitor the location of American citizens as a method of surveillance. TikTok denies these claims.

October 27, 2022: Even as the government places increasing pressure on TikTok, the Biden administration invites eight TikTok stars to the White House in an effort to reach Gen Z voters.

That same day, A Philadelphia judge rules that TikTok is immune in a lawsuit claiming the app was responsible for the death of a child participating in the “blackout challenge.”

Why Samsonite Just Paid $178.5M for BÉIS

🔦 Spotlight

Hello, Hello.

This week, one of LA’s most recognizable consumer brands packed its biggest bag yet.

Samsonite Group has agreed to acquire an 85% stake in BÉIS for $178.5M, valuing the Los Angeles-based travel and lifestyle brand at approximately $210M. The deal is expected to close in Q4, pending regulatory approval.

Founded by actress and entrepreneur Shay Mitchell and incubated by LA-based Beach House Group in 2018, BÉIS has grown from a digitally native luggage startup into a profitable business that generated approximately $210M in sales last year. Along the way, it built the kind of fiercely loyal online following that legacy brands spend years and considerable marketing budgets trying to manufacture.

Image Source: BÉIS

That may be the most interesting part of this deal. Samsonite is not simply acquiring another luggage line. It is buying access to a younger, predominantly female customer base, a sophisticated direct-to-consumer operation and a brand that knows how to turn social media attention into actual sales. The suitcases are useful; the cultural relevance is the real carry-on.

BÉIS will continue operating as a standalone brand under CEO Adeela Hussain Johnson and its existing management team. Mitchell will retain a 15% ownership stake and continue guiding the company’s creative and product vision, while Samsonite brings the global distribution, sourcing and logistics infrastructure needed to take the brand further.

For LA’s startup community, the acquisition is another reminder that valuable technology companies do not always look like software companies. BÉIS built its advantage through digital distribution, community and an unusually sharp understanding of its customer. Now, one of the world’s largest luggage companies wants what it created.

Sometimes the strongest exit starts with knowing exactly what people want to pack.

More from this week’s LA startup and venture scene below.

🤝 Venture Deals

    LA Companies

    • Heaviside Industries raised a $60M Series B to accelerate the development and production of its autonomous precision munitions for U.S. and allied forces. The company also announced a strategic partnership with defense manufacturer Nammo, combining Heaviside’s autonomous weapons technology with Nammo’s expertise in propulsion, warheads and large-scale munitions production. - learn more
    • Alex Cooper and Matt Kaplan’s media company Unwell received its first outside investment from WTSL, giving the profitable business a $500M pre-money valuation. Unwell, which reaches a reported 70M women each month through podcasts, film and television, live events, consumer products and a creative agency, will use the capital to pursue acquisitions, make investments and expand into new business lines. - learn more
    • Neros raised a $250M Series C at a $2.5B valuation, with participation from LA-based Interlagos, MANTIS Venture Capital and Thiel Capital. The El Segundo defense startup will use the funding to scale its autonomous strike and interceptor drone programs, expand production and strengthen its domestic supply chain as demand grows from the U.S. military and allied forces. - learn more
    • FriskAI raised $3.6M from MaC Venture Capital to expand its observability and security platform for AI agents. The startup helps companies monitor what autonomous agents do in real time, giving teams greater visibility into agent behavior and helping them identify errors, risks and unexpected actions. - learn more
    • Diald raised $1M in follow-on funding led by Feedback Ventures, bringing its total funding to $4.75M. The company also launched a rebuilt conversational AI platform that lets commercial real estate investors create pro formas and evaluate zoning, permits, neighborhood sentiment and other property risks through plain-language prompts. - learn more

    LA Venture Funds
    • Alexandria Venture Investments participated in Khartis Therapeutics’ $50M Series B, led by Forge Life Science Partners, bringing the San Diego biotech’s total funding to $95M. Khartis will use the capital to advance its lead oral treatment for thyroid eye disease and expand its pipeline of small-molecule immunology drugs. - learn more
    • Finality Capital Partners co-led Entravel Group’s $7.5M funding round alongside Ethereal Ventures, with participation from GSR, Varrock, G1 Ventures, Seier Capital, Veris Ventures, Funfair Ventures and WTG Ventures. The traveltech company will use the capital to expand its white-label hotel-booking infrastructure beyond crypto platforms and develop a stablecoin-powered system for settlement, treasury and working-capital financing. - learn more
    • Regeneration.VC participated in Clarity Systems’ $4.4M seed round, led by LMnT Ventures and joined by Humba Ventures and Massive Technology Ventures. Clarity uses X-ray imaging, computer vision and AI to detect counterfeits, product swaps and other forms of returns fraud in seconds without opening the package. - learn more
    • CIV participated in AGent Energy’s $11M Series Seed round alongside existing investor Zero Infinity Partners, with Spero Ventures and MassMutual Ventures co-leading and Intrepid Investment Management also joining. The Houston startup uses AI-powered hardware and software to turn largely idle backup generators into on-demand grid capacity during emergencies, and the new funding brings its total raised to $17M. - learn more
    • Smash Capital co-led CodeRabbit’s $143M Series C alongside Atomico, valuing the AI code-review company at $1.5B. CodeRabbit will use the funding to expand internationally and develop its new Agentic Change Management platform, which helps companies review, govern and monitor software created by both humans and AI agents. - learn more
    • Multiball Capital backed Soctera’s $4M seed round alongside Anorak Ventures, with additional participation from 9Yards Capital, Mana Ventures and Red Bear Ventures. The Cornell spinout will use the funding to develop heat-efficient power amplifiers designed to improve the range, signal quality and reliability of radar, electronic warfare, satellite and telecommunications systems. - learn more
    • WndrCo participated in Genera’s $10M seed round, which was led by First Round Capital and also included BoxGroup, Carpenter Capital and Success Venture Partners. Genera will use the funding to scale its AI platform, which automates the often labor-intensive process of deploying enterprise software, including customer discovery, data migration and system configuration. - learn more
    • M13 co-led Baselayer’s $20M Series A alongside Koro Capital, bringing the fintech startup’s total funding to approximately $47M. Baselayer will use the capital to enhance its AI-powered platform, which helps banks, fintech companies and government agencies automate business verification, risk assessment and fraud monitoring. - learn more

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      Two LA Startups Raised $2.37B to Build What AI Needs

      🔦 Spotlight

      Happy Friday, LA.

      The largest checks in tech are increasingly going toward companies trying to build their way out of America’s biggest physical constraints.

      This week, two Los Angeles startups raised a combined $2.37 billion in equity to tackle two particularly urgent ones: how the country manufactures critical hardware and where it will find enough electricity to power the AI era.

      Torrance-based Hadrian is building highly automated factories for defense and aerospace. El Segundo’s Valar Atomics wants to manufacture nuclear reactors at scale. Different industries, same underlying bet: the next generation of technology will depend on our ability to produce physical infrastructure much faster than we do today.

      Hadrian raised $1.37 billion in Series D funding, bringing its valuation to $7.87 billion. The company plans to use the capital to open new factories, expand research and development, and increase its capacity to produce critical defense, aerospace and industrial systems.

      Hadrian’s pitch is straightforward, if wildly ambitious: America needs to relearn how to build things and build them quickly.

      Its factories combine skilled workers with AI, robotics and proprietary software to manufacture precision components and, increasingly, complete mission-critical systems. Its customers include defense giants such as Lockheed Martin and RTX, along with newer players like Anduril.

      The company has come a long way from simply making aerospace parts. Hadrian is positioning itself as a piece of America’s industrial infrastructure, offering manufacturers a way to rapidly scale domestic production at a time when wars abroad, strained supply chains and growing defense demands have made the country’s manufacturing gaps increasingly difficult to ignore.

      Investors are clearly buying the argument. The new round comes just over a year after Hadrian raised $260 million, suggesting that “reindustrialization” has officially graduated from venture capital buzzword to billion-dollar investment thesis.

      Meanwhile, roughly 15 miles away in El Segundo, Valar Atomics is moving even faster than its enormous ambitions suggested.

      When we last wrote about Valar, the company was reportedly raising $450 million at a $2 billion valuation and racing to prove that nuclear energy could move on AI’s timetable. Now, it has closed a $1 billion Series B led by Sequoia Capital, secured an additional $200 million credit facility and reportedly reached a $6 billion valuation.

      Valar is developing standardized, factory-built nuclear power plants designed to avoid the enormous costs and decades-long construction timelines associated with traditional nuclear projects. Its goal is not merely to build a working reactor, but to eventually manufacture fleets of them.

      That ambition also sounds considerably less theoretical than it did when we first covered the company. In June, Valar’s Ward 250 reactor achieved a self-sustaining nuclear reaction. Just one week later, the company demonstrated the reactor generating electricity to power an Nvidia Blackwell system. Valar now says the new funding will help it move from proving its technology works to producing reactors at scale.

      The timing is no coincidence. AI’s enormous appetite for electricity is forcing the tech industry to confront a basic reality: the cloud still has to plug into something. Training models and operating massive data centers will require far more reliable power, and nuclear energy is rapidly becoming one of Silicon Valley’s favorite answers.

      Hadrian and Valar may be solving different problems, but their unusually large rounds point to the same shift. AI can design, predict and automate, but it cannot manufacture a missile component or generate a megawatt of electricity on its own. That requires factories, energy systems, supply chains and a great deal of capital.

      For years, venture-backed companies competed to build the software layer. Now, some of the biggest bets are being placed on the infrastructure underneath it.

      The future may run on AI. But first, someone has to build what keeps it running.

      More from this week’s LA startup and venture scene below.

      🤝 Venture Deals

        LA Companies

        • Endeavor Optical Networks emerged from stealth with $10.75M in seed funding from General Catalyst and Andreessen Horowitz to develop a satellite network that uses lasers to move data between continents. The startup plans to use the capital to build an optics lab, hire engineers and conduct ground testing ahead of a demonstration satellite launch targeted for late 2027. - learn more
        • Actualyze AI emerged from stealth with a $7M seed round backed by Storm Ventures, Canaan Partners, Morado Ventures and AME Cloud Ventures. Its platform gives enterprises a central control layer for managing AI usage across teams and applications, helping them enforce security policies, track spending, route requests between models and maintain audit trails. - learn more
        • Blaze.tech raised $8.5M in pre-seed funding led by Friale, a healthcare-focused venture firm founded by the family behind HCA Healthcare. The company helps digital health startups, providers and payers turn AI-generated prototypes into HIPAA-compliant software for uses including e-prescribing, EHR integrations, telehealth and auditing. - learn more

        LA Venture Funds
        • Canon Capital participated in Oligo Security’s $60M funding round alongside Ballistic Ventures, Greenfield Partners, Lightspeed Venture Partners, Red Dot Capital Partners, TLV Partners and other investors, bringing the cybersecurity company’s total funding to $140M. Oligo will use the capital to accelerate product development and expand its global go-to-market operations as it helps organizations detect and block software exploits in real time. - learn more
        • Matter Venture Partners participated in Volta’s seed and Series A financing alongside Azora, Andreessen Horowitz, Altimeter, NVIDIA and Michael Dell’s family office, valuing the AI infrastructure startup at $2.4B. Emerging from stealth, Volta plans to use the backing to develop and operate large-scale AI data centers, supported by a $5B infrastructure financing program with Azora and a $10B European compute partnership. - learn more
        • Cedars-Sinai participated in Cirrus Therapeutics’ expanded seed financing through its Intellectual Property Company, bringing the ocular immunology biotech’s total funding to $14.7M. Cirrus will use the backing to advance its gene and cell therapy pipeline, including a lead treatment for geographic atrophy, while a new collaboration with Singapore Eye Research Institute and Duke-NUS will support research, clinical development and expansion across Asia-Pacific. - learn more
        • Strong Ventures made a follow-on investment in Ready Robust Machine’s ₩13.4B Series B, which was led by Quantum Ventures Korea and brought the heavy-equipment technology company’s total funding to ₩22.9B. The company develops energy-recovery systems for hydraulic machinery and will use the capital to build out mass production, expand its data services and enter the Japanese market. - learn more

        LA Exits

        • Artium has been acquired by global consulting firm AlixPartners, bringing its expertise in building enterprise-grade AI agents for clients including BNY Mellon, Mayo Clinic and eBay to a broader global platform. The company will continue operating as a distinct team under the name Artium by AlixPartners, retaining its founders, employees, methodology and research relationships. - learn more

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          How Replify Found Its Niche and an Acquirer

          🔦 Spotlight

          Hello LA,

          This week’s startup story began three years ago with an AI assistant built for almost any small business. It ended, or perhaps graduated, with an acquisition by one of the fitness industry’s largest technology providers.

          ABC Fitness has acquired Replify, an AI platform that manages customer communication for gyms and wellness businesses across phone, text, email and chat. Its virtual agents can answer questions, qualify leads, schedule tours and classes, follow up on missed calls and run outbound campaigns. Financial terms were not disclosed.

          Before Replify found its footing in fitness, it was HeyLibby, a general-purpose AI assistant founded in 2023 by former Zillow colleagues Spencer Rascoff, Tony Small and Anna Rodriguez. The company was incubated inside Rascoff’s 75 & Sunny Labs and initially set out to help small businesses turn incoming messages into qualified leads.

          That broad vision gave HeyLibby a large potential customer base, from real estate agents and contractors to hairstylists and event planners. But as the team searched for product-market fit, one industry’s problem stood out. Gym and wellness employees were often too busy helping customers in person to answer every call, text or email, leaving prospective members waiting and potential revenue on the table.

          That insight reshaped the company. HeyLibby narrowed its focus to fitness and wellness, raised a $4.5M seed round in 2025 and later rebranded as Replify. It went on to work with brands including Gold’s Gym and UFC Gym, proving that its AI agents could do more than answer routine questions. According to the company, customers have captured up to 10 times more leads and shortened sales cycles from roughly 30 days to as little as three to five days.

          ABC Fitness became a natural next step. The company provides software to more than 30,000 fitness businesses serving over 40 million members worldwide. By adding Replify to its platform, ABC can offer gyms an always-available AI front desk while bringing Replify’s technology to a much larger global customer base.

          Replify’s journey offers a useful lesson amid the rush to build AI products for everyone. The company began with a broad promise, identified a customer with a specific and expensive problem, and built deeply around that need. Gym owners did not need another flashy chatbot. They needed someone to answer the phone when the front desk could not.

          Sometimes the smartest AI strategy is simply picking up the call.

          More from this week’s LA startup and venture scene below.

          🤝 Venture Deals

            LA Companies

            • Dimension raised a $1.65M seed round backed by Science Inc., UpscaleX, OpenSky, Long Run Capital, 1864 Fund and others. The profitable social-commerce company will use the funding to launch Seller OS more broadly, an agentic AI platform that automates TikTok Shop operations for brands and agencies. - learn more
            • Procode raised a $10M Series A led by Health Velocity Capital, bringing its total funding to $14M. The AI-powered medical billing company will use the capital to acquire two additional billing businesses and expand its platform beyond plastic surgery and dermatology into all surgical specialties and ambulatory surgery centers. - learn more
            • Antares raised $470M in Series C financing, including $370M in equity and $100M in debt, in a round co-led by Paradigm and Caffeinated Capital. The nuclear energy company will use the capital to commercialize its autonomous microreactors, with an electricity-producing model planned for 2027 and initial deployments at U.S. military installations beginning in 2028. - learn more

            LA Venture Funds
            • Wilshire Lane Capital participated in Ellis’ more than $10M seed round, which was led by First Round Capital and included Kearny Jackson, 645 Ventures, Harlem Capital, Khosla Ventures and others. Founded by Cadre founder Ryan Williams, Ellis has emerged from stealth with an AI-native operations platform that helps private credit managers reconcile fragmented data and automate workflows such as portfolio monitoring, investor reporting and compliance; the funding will support team growth and further product development. - learn more
            • Rebel Fund participated in Dili’s $15M Series A, led by Khosla Ventures, bringing the AI compliance company’s total funding to $21.7M. Dili helps energy, construction, infrastructure and manufacturing companies identify compliance issues by reviewing project data in real time, and will use the funding to expand its team and broaden its platform into additional audit and waste-detection workflows. - learn more
            • B Capital led ChipAgents’ $60M Series A2, which brought the semiconductor AI startup’s expanded Series A financing to $134M. ChipAgents will use the funding to scale customer deployments, expand its engineering and go-to-market teams and further develop its AI platform, which automates complex chip design and verification workflows. - learn more
            • StoryHouse Ventures participated as a returning investor in Henry AI’s $16.5M Series A, led by FirstMark Capital with backing from Thomson Reuters Ventures, Y Combinator and others. The commercial real estate AI company will use the funding to expand its engineering and product teams and scale Henry Deal, a platform that automates underwriting, offering materials and other back-office work throughout a transaction. - learn more
            • Walkabout Ventures and Bungalow Capital co-led Discern’s $10M Series A, bringing the company’s total funding to $17.5M. Discern provides a software-based registered agent service that automates state filings and compliance tasks, and will use the capital to scale its platform following fourfold annual recurring revenue growth in 2025. - learn more
            • Starshot Capital participated in Quercus Biosolutions’ oversubscribed $5M seed round, which was led by Serra Ventures and included several climate, agriculture and grower-backed investors. The agtech startup will use the funding to expand its pipeline of AI-designed proteins for fighting herbicide-resistant weeds, begin regulatory work and explore applications targeting fungi, insects and other crop pests. - learn more
            • B Capital co-led Flourish Health’s $26M Series A alongside F-Prime and Cherryrock Capital, bringing the youth mental health provider’s total funding to $46M. Flourish will use the capital to expand its psychiatrist-led, in-home care model nationwide, hire and train clinicians and further develop its AI-enabled platform for coordinating care. - learn more
            • Powerhouse Capital participated in European Technology Network’s $1.6M seed round alongside Axel Springer, a LADbible co-founder and angel investors from OpenAI and DeepMind. The London-based tech media startup will use the funding to open a larger studio, expand its team, launch a newsletter and increase its livestreamed programming from two shows per week to five. - learn more

            LA Exits

            • Saltair, the Los Angeles body-care brand founded by model and entrepreneur Iskra Lawrence, is selling a majority stake to private equity firm TSG Consumer. Financial terms were not disclosed, but the deal will support Saltair’s expansion across e-commerce, retail and new products, while Lawrence transitions into the role of chief community advocate. - learn more
            • Digital marketing agency GR0 plans to acquire Ultimate AI’s enterprise deployment division and use the team’s technology to launch a new company called GR0 AI. The platform will deploy AI agents across brands’ customer data, commerce and marketing systems to personalize outreach, recover abandoned sales and generate measurable revenue; financial terms were not disclosed. - learn more

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