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XCalifornia's AB 3262 Is Quietly Shelved; GoodRx Files for IPO; Scopely Adds FoxNext Exec to Its Ranks
Tami Abdollah was dot.LA's senior technology reporter. She was previously a national security and cybersecurity reporter for The Associated Press in Washington, D.C. She's been a reporter for the AP in Los Angeles, the Los Angeles Times and for L.A.'s NPR affiliate KPCC. Abdollah spent nearly a year in Iraq as a U.S. government contractor. A native Angeleno, she's traveled the world on $5 a day, taught trad climbing safety classes and is an avid mountaineer. Follow her on Twitter.

Here are the latest updates on news affecting Los Angeles' startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for more.
Today:
- California Bill to Make Online Marketplaces Liable for Faulty Products is Shelved
- GoodRx To Enter NASDAQ as GDRX
- FoxNext Games Executive to Head Scopely's Business Operations
FoxNext Games Executive to Head Scopely's Business Operations
FoxNext Games Executive to Head Scopely's Business Operations
Scopely, the Culver City-based gaming company behind Scrabble Go and several other mobile games, has named former FoxNext Games executive Aaron Loeb as its chief business officer.
The move to bring in the veteran gaming executive came as part of Scopely's acquisition of FoxNext's gaming division, which it bought from Disney after then-CEO Bob Iger spun it off from 20th Century Fox.
Before FoxNext, Loeb was president at mobile gaming studio Kabam and its spinout Aftershock, following stints as vice president and group general manager at games publisher EA and CEO at Planet Moon Studios, a game developer.
Loeb will oversee several teams at Scopely, with a focus on "refining game development, tech quality and creative processes," according to the company statement. He will be based in the company's London offices, where Scopely has pushed its European expansion.
The move comes as the gaming industry has been growing rapidly. There are nearly 3 billion gamers worldwide – that's more people than live in China and India, the world's two most populous countries, combined. One big reason that number is so high? Mobile games. Those "gamers" range from professional esports players seeking fame and fortune to folks waiting for their lattes by twiddling at games like Scrabble Go and Candy Crush.
Earlier this year, nine-year-old Scopely raised a $400 million Series D, bringing its total funding raised to over $650 million. That cash helped to finance Scopely's acquisition of FoxNext Games in April. Scopely's other game titles include Yahtzee With Buddies, which has earned over $500 million in lifetime revenue according to a company statement, and Marvel Strike Force, which was developed by FoxNext.
In addition to its L.A. HQ and London office, Scopely has offices in Boulder CO, Tokyo, Dublin and Barcelona.
California's AB 3262 Is Quietly Shelved
A California bill that would have held Amazon and other online marketplaces strictly liable for defective third-party products was quietly shelved over the weekend.
The bill, AB 3262, authored by Democratic Assemblyman Mark Stone of Santa Cruz, was expected to be voted on by the state Senate before session adjourns Monday. But the bill has spurred increasing opposition among the business community. A novel coronavirus scare among Republican senators after one had tested positive last week further delayed the vote.
Stone said in a statement that he recognized the complexity surrounding the purchase of flawed or falsely advertised products online but wanted to "move beyond the 'Buyer Beware' mentality, and toward an online policy that has been the law for brick-and-mortar retailers in California for decades."
Supporters of the measure have said it is crucial to leveling the playing field for such brick-and-mortar stores, but critics say that the bill places an unnecessary burden on small businesses and startups with tighter budgets to address such issues who are already under tremendous strain during a global pandemic.
"Unfortunately, despite promising ideas and potential paths for moving forward, AB 3262 will not advance in its present form by the legislative deadline," Stone said. "I am committed to continuing the conversation with the online industry, with my follow [sic] members in the legislature, and with California consumers, to create a strong and effective measure in the future that ensures that if a defective product is purchased online, the consumer has a remedy."
GoodRx To Enter NASDAQ as GDRX
Prescription discount GoodRX filed to go public Friday and is looking to raise $100 million. It will be traded on the NASDAQ under the ticker symbol "GDRX" later this year.
Co-founded by former Facebook executive Doug Hirsch in 2011, the Santa Monica company makes money by collecting fees from pharmacy benefits managers. It offers comparison pricing at different pharmacies and has been one of the most popular downloaded medical apps.
While some tech companies are going out for IPOs while losing money, GoodRx stands apart for its steady profit growth over recent years. It earned $54 million in profit for the first six months ending in June, up from $31 million over the same time last year, a 74% increase.
The company targets consumers who are paying for drugs out-of-pocket at drug stores, and many of them have fallen off during the pandemic, choosing instead to stay home or avoid the doctor. Second quarter use fell to 4.4 million from 4.9 million from the prior quarter, although usage appears to be picking up again.
Last year, GoodRx expanded into telehealth with HeyDoctor and, while patients have flocked to the new service during the pandemic, the division is less profitable than the prescription side of the business.
In its filings on Friday, the company laid out some of its biggest risks, including a model that's highly dependent on a drug pricing structure dictated by pharmaceutical manufacturers and wholesalers, insurance companies and benefits managers - all of which it has little control over. The company is also reliant on more than a dozen benefit managers, but their business is dominated by just three of them.
Earlier this year, Hirsch and co-founder Trevor Bezdek told CNBC they are "constantly worrying" about regulatory issues like single payer health care, competition and the industry souring on them.
"All we can do, and all we have done, is stayed true to our mission of helping provide more transparency to consumers," Bezdek told CNBC.
Tami Abdollah was dot.LA's senior technology reporter. She was previously a national security and cybersecurity reporter for The Associated Press in Washington, D.C. She's been a reporter for the AP in Los Angeles, the Los Angeles Times and for L.A.'s NPR affiliate KPCC. Abdollah spent nearly a year in Iraq as a U.S. government contractor. A native Angeleno, she's traveled the world on $5 a day, taught trad climbing safety classes and is an avid mountaineer. Follow her on Twitter.
Rachel Uranga is dot.LA's Managing Editor, News. She is a former Mexico-based market correspondent at Reuters and has worked for several Southern California news outlets, including the Los Angeles Business Journal and the Los Angeles Daily News. She has covered everything from IPOs to immigration. Uranga is a graduate of the Columbia School of Journalism and California State University Northridge. A Los Angeles native, she lives with her husband, son and their felines.
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
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This Week in ‘Raises’: Improvado Hauls $22M, Clearlake Launches $14B Fund
Kristin Snyder is an editorial intern for dot.la. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
This week in “Raises”: A pair of Web3 platforms for gamers landed funding, as did a Manhattan Beach medical startup looking to bolster primary care via nurse practitioners. Meanwhile, a Santa Monica-based investment firm launched its seventh fund with more than $14 billion in dry powder.
Venture Capital
Improvado, a marketing data aggregation platform, raised $22 million in a Series A funding round led by Updata Partners.
Web3 gaming platform FreshCut raised $15 million in funding led by Galaxy Interactive, Animoca Brands and Republic Crypto.
Medical startup Greater Good Health raised $10 million in a funding round led by LRVHealth.
Joystick, a Web3 platform for gamers and creators, raised $8 million in seed funding.
Open source data protection company CipherMode Labs raised $6.7 million in seed funding led by Innovation Endeavors .
Mobile phone charging network ChargeFUZE raised $5 million in seed funding led by Beverly Pacific, TR Ventures, VA2, Jason Goldberg and Al Weiss.
Polygon, a startup aiming to better diagnose children with learning disabilities, raised $4.2 million in seed and pre-seed funding led by Spark Capital and Pear VC.
Pique, a virtual women's sexual health clinic, raised $4 million in a seed funding round led by Maveron.
Psudo, a sneaker startup that utilizes recycled water bottles and 3D sublimation printing to create its shoes, raised $3 million in a seed funding round led by SternAegis Ventures.
Funds
Santa Monica-based investment firm Clearlake Capital Group raised $14.1 billion for its seventh flagship fund.
Raises is dot.LA’s weekly feature highlighting venture capital funding news across Southern California’s tech and startup ecosystem. Please send fundraising news to Kristin Snyder (kristinsnyder@dot.la).Kristin Snyder is an editorial intern for dot.la. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
LA Tech ‘Moves’: New Head of Originals at Snap, New President at FaZe Clan
Kristin Snyder is an editorial intern for dot.la. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
“Moves”, our roundup of job changes in L.A. tech, is presented by Interchange.LA, dot.LA's recruiting and career platform connecting Southern California's most exciting companies with top tech talent. Create a free Interchange.LA profile here—and if you're looking for ways to supercharge your recruiting efforts, find out more about Interchange.LA's white-glove recruiting service by emailing Sharmineh O’Farrill Lewis (sharmineh@dot.la). Please send job changes and personnel moves to moves@dot.la.
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FaZe Clan brought on Zach Katz as the gaming and media company’s new president and chief operating officer. Katz was previously the chief executive officer of the music tech investment fund Raised in Space Enterprises.
TikTok brand factory LINK Agency promoted Dustin Poteet to chief creative officer. Poteet was previously creative director at the firm.
Livestream shopping platform Talkshoplive hired Tradesy co-founder John Hall as its chief technology officer. Universal Music Group Nashville's former vice president of digital marketing, Tony Grotticelli, also joins the company as vice president of marketing.
Anjuli Millan will take over as head of original content at Snap after three years of overseeing production for the division.
Tech and media company Blavity hired Nikki Crump as general manager of agency. Crump joins the company from Burrell Communications Group.
O'Neil Digital Solutions, which provides customer communications and experience management for the health care industry, hired Eric Ramsey as national account sales executive. Ramsey joins from T/O Printing.
Investment firm Cresset Partners named Tammy Funasaki as managing director of business development. Funasaki previously served as head of investor relations for Breakwater Management.
- LA Tech Updates: Artie Closes $10M Seed Round; FaZe Clan Has a ... ›
- FaZe Clan Announces Immersive Pop-Up Shop - dot.LA ›
Kristin Snyder is an editorial intern for dot.la. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
Snapchat’s New Controls Could Let Parents See Their Kids’ Friend Lists
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
Snapchat is preparing to roll out enhanced parental controls that would allow parents to see who their teenagers are chatting with on the social media app, according to screenshots of the upcoming feature.
Snap’s parental controls.
Courtesy of Watchful.
Snapchat is planning to introduce Family Center, which would allow parents to see who their children are friends with on the app and who they’ve messaged within the last seven days, according to screenshots provided by Watchful, a product intelligence company. Parents would also be able help their kids report abuse or harassment.
The parental controls are still subject to change before finally launching publicly, as the Family Center screenshots—which were first reported by TechCrunch—reflect features that are still under development.
Santa Monica-based Snap and other social media giants have faced mounting criticism for not doing more to protect their younger users—some of whom have been bullied, sold deadly drugs and sexually exploited on their platforms. State attorneys general have urged Snap and Culver City-based TikTok to strengthen their parental controls, with both companies’ apps especially popular among teens.
A Snap spokesperson declined to comment on Friday. Previously, Snap representatives have told dot.LA that the company is developing tools that will provide parents with more insight into how their children are engaging on Snapchat and allow them to report troubling content.
Yet Snap’s approach to parental controls could still give teens some privacy, as parents wouldn’t be able to read the actual content of their kids’ conversations, according to TechCrunch. (The Family Center screenshots seen by dot.LA do not detail whether parents can see those conversations).
In addition, teenage users would first have to accept an invitation from their parents to join the in-app Family Center before those parents can begin monitoring their social media activity, TechCrunch reported.
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.