AI Is Rapidly Advancing, but the Question Is, Can We Keep Up?

Lon Harris
Lon Harris is a contributor to dot.LA. His work has also appeared on ScreenJunkies, RottenTomatoes and Inside Streaming.
AI Is Rapidly Advancing, but the Question Is, Can We Keep Up?
Evan Xie

One way to measure just how white-hot AI development has become: the world is running out of the advanced graphics chips necessary to power AI programs. While Intel central processing units were once the most sought-after industry leaders, advanced graphics chips like Nvidia’s are designed to run multiple computations simultaneously, a baseline necessity for many AI models.

An early version of ChatGPT required around 10,000 graphics chips to run. By some estimates, newer updates require 3-5 times that amount of processing power. As a result of this skyrocketing demand, shares of Nvidia have jumped 165% so far this year.

Building on this momentum, this week, Nvidia revealed a line-up of new AI-related projects including an Israeli supercomputer project and a platform utilizing AI to help video game developers. For smaller companies and startups, however, getting access to the vital underlying technology that powers AI development is already becoming less about meritocracy and more about “who you know.” According to the Wall Street Journal, Elon Musk scooped up a valuable share of server space from Oracle this year before anyone else got a crack at it for his new OpenAI rival, X.AI.

The massive demand for Nvidia-style chips has also created a lucrative secondary market, where smaller companies and startups are often outbid by larger and more established rivals. One startup founder compares the fevered crush of the current chip marketplace to toilet paper in the early days of the pandemic. For those companies that don’t get access to the most powerful chips or enough server space in the cloud, often the only remaining option is to simplify their AI models, so they can run more efficiently.

Beyond just the design of new AI products, we’re also at a key moment for users and consumers, who are still figuring out what sorts of applications are ideal for AI and which ones are less effective, or potentially even unethical or dangerous. There’s now mounting evidence that the hype around some of these AI tools is reaching a lot further than the warnings about its drawbacks.

JP Morgan Chase is training a new AI chatbot to help customers choose financial securities and stocks, known as IndexGPT. For now, they insist that it’s purely supplemental, designed to advise and not replace money managers, but it may just be a matter of time before job losses begin to hit financial planners along with everyone else.

A lawyer in New York just this week was busted by a judge for using ChatGPT as part of his background research. When questioned by the judge, lawyer Peter LoDuco revealed that he’d farmed out some research to a colleague, Steven A. Schwartz, who had consulted with ChatGPT on the case. Schwartz was apparently unaware that the AI chatbot was able to lie – transcripts even show him questioning ChatGPT’s responses and the bot assuring him that these were, in fact, real cases and citations.

New research by Marucie Jakesch, a doctoral student from Cornell University, suggests that even users who are more aware than Schwartz about how AI works and its limitations may still be impacted in subtle and subconscious ways by its output.

Not to mention, according to data from Intelligent.com, high school and college students already – on the whole – prefer utilizing ChatGPT for help with schoolwork over a human tutor. The survey also notes that advanced students tend to report getting more out of using ChatGPT-type programs than beginners, likely because they have more baseline knowledge and can construct better and more informative prompts.

But therein lies the big drawback to using ChatGPT and other AI tools for education. At least so far, they’re reliant on the end user writing good prompts and having some sense about how to organize a lesson plan for themselves. Human tutors, on the other hand, have a lot of personal experience in these kinds of areas. Someone who instructs others in foreign languages professionally probably has a good inherent sense of when you need to focus on expanding your vocabulary vs. drilling certain kinds of verb and tense conjugations. They’ve helped many other students prepare for tests, quizzes, and real-world challenges, while computer software can only guess at what kinds of scenarios its proteges will face.

A recent Forbes editorial by academic Thomas Davenport suggests that, while AI is getting all the hype right now, other forms of computing or machine learning are still going to be more effective for a lot of basic tasks. From a marketing perspective in 2023, it’s helpful for a tech company to throw the “AI” brand around, but it’s not magically going to be the answer for every problem.

Davenport points to a similar (if smaller) whirlwind of excitement around IBM’s “Watson” in the early 2010s, when it was famously able to take out human “Jeopardy!’ champions. It turns out, Watson was a general knowledge engine, really best suited for jobs like playing “Jeopardy.” But after the software gained celebrity status, people tried to use it for all sorts of advanced applications, like designing cancer drugs or providing investment advice. Today, few people turn to Watson for these kinds of solutions. It’s just the wrong tool for the job. In that same way, Davenport suggests that generative AI is in danger of being misapplied.

While the industry and end users both race to solve the AI puzzle in real time, governments are also feeling pressure to step in and potentially regulate the AI industry. This is much easier said than done, though, as politicians face the same kinds of questions and uncertainty as everyone else.

OpenAI CEO Sam Altman has been calling for governments to begin regulating AI, but just this week, he suggested that the company might pull out of the European Union entirely if the regulations were too onerous. Specifically, Altman worries that attempts to narrow what kinds of data can be used to train AI systems – specifically blocking copyrighted material – might well prove impossible. “If we can comply, we will, and if we can’t, we’ll cease operating,” Altman told Time. “We will try, but there are technical limits to what’s possible.” (Altman has already started walking this threat back, suggesting he has no immediate plans to exit the EU.)

In the US, The White House has been working on a “Blueprint for an AI Bill of Rights,” but it’s non-binding, just a collection of largely vague suggestions. It’s one thing to agree “consumers shouldn’t face discrimination from an algorithm” and “everyone should be protected from abusive data practices and have agency over how their data is used.” But enforcement is an entirely different animal. A lot of these issues already exist in tech, and are much larger than AI, and the US government already doesn’t do much about them.

Additionally, it’s possible AI regulations won’t work well at all if they aren’t global. Even if you set some policies and get an entire nation’s government to agree, how to set similar worldwide protocols? What if US and Europe agree but India doesn’t? Everyone around the world accesses roughly the same internet, so without any kind of international standard, it’s going to be much harder for individual nations to enforce specific rules. As with so many other AI developments, there’s inherent danger in patchwork regulations; it could allow some companies, or regions, or players to move forward while others are unfairly or ineffectively stymied or held back.

The same kinds of socio-economic concerns around AI that we have nationally – some sectors of the work force left behind, the wealthiest and most established players coming in to the new market with massive advantages, the rapid spread of misinformation – are all, in actuality, global concerns. Just as the hegemony of Microsoft and Google threaten the ability of new players to enter the AI space, the West’s early dominance of AI tech threatens to push out companies and innovations from emerging markets like Southeast Asia, Subsaharan Africa, and Central America. Left unfettered, AI could potentially deepen social, economic, and digital divisions both within and between all of these societies.

Undaunted, some governments aren’t waiting around for these tools to develop any further before they start attempting to regulate them. New York City has already set up some rules about how AI can be used during the hiring process while will take effect in July. The law requires any company using AI software in hiring to notify candidates that it’s being used, and to have independent auditors check the system annually for bias.

This sort of piecemeal figure-it-out-as-we-go approach is probably what’s going to be necessary, at least short-term, as AI development shows zero signs of slowing down or stopping any time soon. Though there’s some disagreement among experts, most analysts agree with Wharton professor and economist Jeremy Siegel, who told CNBC this week that AI is not yet a bubble. He pointed to the Nvidia earnings as a sign the market remains healthy and not overly frothy. So, at least for now, the feverish excitement around AI is not going to burst like a late ‘90s startup stock. The world needs to prepare as if this technology is going to be with us for a while.

Disney Picks AI, Paramount Picks a Fight

🔦 Spotlight

Happy Friday, Los Angeles.

If last week felt like Netflix bought the script for Hollywood’s future, this week Disney and Paramount walked in with rewrites. One is handing its most valuable characters to an AI model. The other is trying to yank Warner Bros. away from Netflix with an all cash offer. Underneath both headlines is the same fight over who really owns the audience.

Disney, OpenAI and the AI powered vault

The Walt Disney Company struck a multiyear agreement with OpenAI that turns Sora into a kind of licensed imagination engine for more than 200 characters across Disney, Marvel, Pixar and Star Wars. Fans will be able to generate short, Sora made videos and images featuring Mickey, Moana, Darth Vader and others, with Disney curating select clips onto Disney Plus, while ChatGPT also rolls out inside the company.

For a studio that has spent years guarding its IP with lawyers, this is a big tone shift. Disney is telling the next generation of fans that playing with the characters happens through an AI model, not just a camera or sketchbook. That could create new formats and jobs, but it also blurs the line between human made and machine made work and puts fresh pressure on ongoing union conversations about training data, credits and compensation.

Paramount crashes the Netflix and Warner Bros. story arc

On the deal side, Warner Bros. Discovery is suddenly the lead in a love triangle. After Netflix announced plans to buy WBD’s studios and streaming business for a mix of cash and stock, Paramount Skydance came in with a hostile, all cash tender offer at 30 dollars per share for the entire company, including linear networks like CNN, TNT Sports and Discovery.

So WBD investors are looking at two very different futures. A Netflix deal would bolt Warner’s IP and production engine onto the world’s largest streaming platform and strip away cable. A Paramount deal would fuse two legacy Hollywood houses and keep more of the old bundle intact. For creators and crews in LA, both paths point to the same reality: fewer, bigger buyers with more control over what gets made, how it is distributed and who gets paid.

Taken together, Disney’s OpenAI partnership and the escalating fight over Warner Bros. are not just AI news or M&A news. They are signals that the next version of Hollywood will be built by a tight circle of platforms that own the IP, the channels and now the models that sit between creators and audiences.

Now keep scrolling for this week’s LA venture deals, fund announcements and acquisitions.

🤝 Venture Deals

      LA Companies

      • K2 Space, a Torrance-based startup building large, high-power satellite platforms, raised a $250M Series C at a $3B valuation in a round led by Redpoint with participation from T. Rowe Price–advised accounts, Hedosophia, Altimeter, Lightspeed and Alpine Space Ventures. The company says the funding will accelerate deployment of its next generation “heavy-lift era” spacecraft, built to deliver far more power and capability than typical smallsats and to support missions across LEO, MEO and GEO for commercial and U.S. government customers, where it already has over $500M in signed contracts. - learn more
      • Stic raised a $10M bridge round led by Accretion Capital, bringing the Los Angeles based out of home adtech startup’s valuation to $200M. The company, which turns everyday drivers into mobile ad inventory for brands, plans to use the funding to expand across more than 30 U.S. states and Canada, deepen relationships with national advertisers and agencies, and strengthen its operations in new markets. - learn more
      • Machina Labs secured a strategic investment and initial partnership agreement from Abu Dhabi’s Strategic Development Fund, the investment arm of EDGE Group, as part of a plan to deploy its AI driven robotic manufacturing technology in the UAE. The deal includes an initial capital infusion with potential funding of up to AED 125 million as the parties explore a joint venture to produce advanced metal structures for sectors like aerospace, defense, and mobility. Machina Labs’ software defined RoboCraftsman platform will anchor the collaboration, enabling rapid, flexible production of complex metal components closer to regional demand. - learn more
      • AnySignal raised a $24M Series A led by Upfront Ventures, with participation from Also Capital, BlueYard Capital, Balerion Space Ventures, First In Ventures and other strategic backers. The Los Angeles based company plans to use the funding to scale production of its space communications and RF systems, expand its national security product lines, and build a new LA area facility that brings everything from algorithm design to high rate manufacturing under one roof. - learn more
      • Saviynt raised a $700M Series B growth round at an approximately $3B valuation, in a financing led by KKR with participation from Sixth Street Growth, Ten Eleven, and existing backer Carrick Capital Partners. The Los Angeles based identity security company says it will use the capital to accelerate product development and integrations as enterprises lean on its AI powered platform to govern human, machine, and AI agent identities across applications, data, and infrastructure. - learn more
      • Haven Energy raised $40M in new funding to accelerate its push into distributed residential power, combining an equity round led by Giant Ventures with a debt facility from Turtle Hill and additional backing from investors including the California Infrastructure Bank, Carnrite Ventures, Chaac Ventures, Comcast Ventures, and Lerer Hippeau. The Los Angeles based company plans to use the capital to deepen partnerships with utilities and community choice aggregators, expand its solar plus battery leasing model and Channel Partner Program for local installers, and scale one of the nation’s largest residential virtual power plant networks, building on more than 10 MW installed and over 50 MW in development for 2026. - learn more
      • Diald AI raised $3.75M in funding to expand its AI powered real estate due diligence and underwriting platform for investors and lenders. The company says it will use the capital to deepen its data coverage, enhance underwriting automation, and grow its customer base of institutional and private real estate investors looking to analyze deals faster and with more consistency across markets. - learn more
      • Hot Smart Rich, Maggie Sellers Reum’s fast growing “female ambition” media brand, has secured a seven figure strategic investment from Steven Bartlett’s media and investment company FlightStory. The partnership aims to turn HSR into a transatlantic platform that connects culture, content, capital, and community, with ambitions to 10x revenue and headcount across production, marketing, product, ecommerce, and membership. In under a year, Hot Smart Rich has already built a cult following with around 1.8M downloads and roughly 500,000 audience members by blending money and business talk with an intimate, group chat tone. - learn more

        LA Venture Funds

        • Mucker Capital backed Orion Sleep’s $18M seed round, joining investors including Browder Capital and Second Sight to support the launch of the company’s AI powered Smart Cover. The startup’s mattress cover fits over any standard bed, uses built in sensors to track heart rate, breathing and sleep stages, and automatically heats or cools each side of the bed to optimize deep and REM sleep. Orion says the funding will help scale production and commercialization of its system, which starts at $2,295 and is designed as a more accessible alternative to fully replacing a mattress. - learn more
        • B Capital led Fervo Energy’s oversubscribed $462M Series E, backing the Houston based company’s push to make next generation geothermal a core source of always on, carbon free power. Fervo says the round will accelerate buildout of its flagship Cape Station project in Utah, expected to reach 500 MW by 2028, and support early development of additional plants as rising AI and electrification demand strain the grid. - learn more
        • Trousdale Ventures joined Vatn Systems’ $60M Series A, a round led by BVVC that the Rhode Island based defense tech company says is one of the largest financings in the autonomous underwater vehicle space. Vatn plans to use the capital to expand its team, accelerate R&D, and scale manufacturing of its Skelmir AUV platforms and INStinct navigation system as it deepens work with the U.S. Navy and Marine Corps and grows its international customer base. - learn more
        • Morpheus Ventures participated in Nu Quantum’s $60M Series A, an oversubscribed round led by National Grid Partners with Gresham House Ventures also joining to back the company’s distributed quantum networking platform. Nu Quantum says it will use the capital to accelerate its “Entanglement Fabric” roadmap, scale its team, and expand globally as it connects multiple quantum processors into a modular, fault tolerant “quantum datacenter” architecture. - learn more
        • Morpheus Ventures joined Fresco’s €15M Series C round, backing the company’s push to power AI driven cooking experiences across a growing network of connected kitchen appliances. The round, which also included new and existing investors like Middleby, ACT Venture Capital, AE Ventures and Alsop Louie Partners, will help Fresco scale its AI Cooking Companion and KitchenOS platform globally, integrate more OEM partners, and deliver personalized, cross brand cooking guidance to home cooks. - learn more
        • Rainfall Ventures participated in Zed’s $16.5M Series A, a round led by Accel that brings the company’s total funding to $22.5M. The husband and wife founded fintech, is building a digital bank for young professionals across Asia, and plans to use the new capital to expand its APAC footprint, grow its team in San Francisco and Manila, and deepen its AI driven underwriting and credit products for this demographic. - learn more
        • GroundForce Capital invested in RTZN Brands, the company behind Righteous Felon, to help scale its cleaner, craft-first jerky and meat snack portfolio. The funding follows a year of triple digit sales growth and expanding national distribution, and will support broader retail rollout, deeper club and grocery partnerships, and new high protein, clean ingredient products as Righteous Felon pushes to become a defining brand in the better for you meat snack category. - learn more
        • Amplify.la participated in Pryzm’s $12.2M seed round, which was led by Andreessen Horowitz’s American Dynamism fund with additional backing from XYZ Venture Capital and Forum Ventures. Pryzm is building an AI powered operating system for federal procurement that helps government agencies discover, evaluate, and acquire emerging technology faster, while giving contractors a unified view of opportunities and capture workflows. The company plans to use the funding to scale its platform across more defense and civilian agencies and grow its team in key hubs like Washington, D.C., Boston, and New York. - learn more
        • Saban Ventures joined Lin Health’s $11M oversubscribed Series A, backing the company’s virtual, neuroscience based chronic pain recovery platform alongside lead investor Proofpoint Capital and other new and existing backers. Lin Health plans to use the funding to advance product innovation, strengthen partnerships with major health systems and payers, and expand nationwide access to its non opioid, physician led and coach supported programs for conditions like migraines, IBS, and back and joint pain. - learn more

        LA Exits

        • tvScientific is being acquired by Pinterest, which has entered into a definitive agreement to buy the connected TV performance advertising platform as it pushes deeper into CTV. Pinterest plans to integrate tvScientific’s outcome based CTV buying, automation and attribution tools into its Performance+ and other AI powered ad products, giving advertisers a clearer view of how connected TV contributes to performance campaigns. The deal, which is subject to regulatory review and expected to close in the first half of 2026, will see tvScientific continue operating under its own brand while tapping Pinterest’s intent rich audience data across 600 million monthly users. - learn more
        • VuePlanner has been acquired by Cadent, which is folding the YouTube ad planning and measurement startup into its predictive advertising platform to strengthen what it calls a “Total Video” strategy across linear TV, CTV, and YouTube. The deal gives Cadent’s clients access to VuePlanner’s AI and expert curated tools for contextual targeting, quality scoring, and independent measurement on YouTube, so advertisers can plan and activate campaigns across premium creator content and traditional TV from a single, end to end workflow. - learn more
        • Cinapse is being acquired by Wrapbook and will join the film and TV payroll and production accounting platform to create a more “connected back office” that links scheduling, payroll, and accounts payable in one system. The deal brings Cinapse’s modern, cloud based scheduling tools and track record across more than $6 billion in productions into Wrapbook’s financial infrastructure, with the goal of giving producers, ADs, and studios a unified way to plan shoots and track every dollar from schedule to spend. - learn more

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                        The Streaming Era Just Ate the Studio Era

                        🔦 Spotlight

                        Hello Los Angeles!

                        In a week where everyone was already arguing about what “the future of entertainment” is supposed to look like, Netflix decided to skip the debate and buy a giant piece of the past and, possibly, the future. Netflix announced a definitive agreement to acquire Warner Bros. Discovery’s Studios and Streaming business, including Warner Bros. film and television studios plus HBO and HBO Max. This is not just another media merger. It is a power transfer, from the studio era where the gatekeepers were greenlight committees to the platform era where the gatekeepers are subscriber relationships, home screens, and retention math.

                        Here are the bones of the deal. WBD shareholders would receive $27.75 per share, made up of $23.25 in cash and $4.50 in Netflix stock, with the stock portion subject to a symmetrical collar. Netflix puts the transaction at roughly $72 billion in equity value and $82.7 billion in enterprise value, and expects it to close in 12 to 18 months, but only after WBD completes its planned separation of its Global Networks business into Discovery Global, now expected in Q3 2026.

                        Now zoom in on why this matters in Los Angeles specifically.

                        LA’s creative engine is about to be run by a single, very efficient distribution machine

                        Warner Bros. is not just a studio. It is an institutional muscle memory for how to develop, package, and produce at scale, plus a library and franchises that can carry a business through multiple economic cycles. Netflix is not just a distributor. It is the largest direct to consumer entertainment subscription platform on earth, built around global reach, product iteration, and data feedback loops. Put them together and you get a company that can create, market, distribute, and monetize premium entertainment without needing anyone else’s permission.

                        That will sound exciting to some creators and terrifying to others, often for the same reason. When the same entity owns the audience relationship and the content factory, it can take bigger swings because it has more margin for error. It can also take fewer swings because it does not need to. The incentive shifts from “What is culturally important?” to “What makes people stay?” Those are sometimes the same question. Sometimes they are not.

                        This deal won’t be decided in a writers’ room. It’ll be decided by regulators.

                        This is exactly the type of consolidation regulators have been itching to interrogate. A combined Netflix plus HBO Max instantly raises questions about market power, competition, and pricing, plus downstream effects on theaters, independent studios, and negotiating leverage with talent. Even if Netflix vows to maintain current operations and keep the consumer experience strong, the political story is straightforward: fewer giant buyers typically means less bargaining power for everyone who sells into the system.

                        Also worth noting, Reuters reports a termination fee of $5.8 billion under certain circumstances, which tells you both sides are bracing for a drawn out, high scrutiny process.

                        The quiet subtext: the bundle is coming back, just wearing a streaming hoodie

                        Netflix will almost certainly pitch this as more choice and better value. Regulators will hear less competition. Consumers will hear how much is this going to cost me. The most plausible end state is not a single mega app on day one. It is a reimagined bundle: separate brands, packaged pricing, shared sign on, cross promotion, and eventually tighter integration if the politics and churn math allow it.

                        The real disruption is not whether HBO Max keeps its name. It is whether Netflix becomes the default front door to premium scripted entertainment globally.

                        🤝 Venture Deals

                            LA Companies

                            • Castelion, a Torrance based defense technology startup, raised a $350M Series B round led by Altimeter Capital and Lightspeed Venture Partners, with participation from investors including Andreessen Horowitz, General Catalyst, Lavrock Ventures, Space VC, Avenir and Interlagos Capital. The money will be used to scale production of its Blackbeard hypersonic weapon, stand up its Project Ranger manufacturing campus in New Mexico, and support multiservice testing and integration with U.S. Army and Navy platforms starting in 2026. - learn more
                            • Antares announced a $96M Series B to accelerate an iterative “build, test, iterate” approach to developing nuclear reactors quickly, with the funding going toward hardware and subsystem testing, fuel fabrication, manufacturing, and the infrastructure to turn on a reactor. The company says it plans a low-power “Mark-0” reactor demonstration in 2026 at Idaho National Laboratory, with a pathway to a full-power electricity-producing reactor as early as 2027 and a commercial prototype microreactor (“Mark-1”) after the Mark-0 milestone. - learn more

                              LA Venture Funds

                              • With FirstLook Partners participating, Flex raised a $60M Series B led by Portage, bringing its total equity raised to $105M to build an AI native finance platform for middle market business owners. The company says it will use the new funding to accelerate product expansion and scale its AI agent infrastructure across areas like private credit, business finance, personal finance, payments, and ERP. - learn more
                              • Led by MTech Capital, Curvestone AI raised a $4M seed round with participation from Boost Capital Partners, D2 Fund, and Portfolio Ventures to scale its AI automation platform for regulated industries like financial services, legal, and insurance. The company says it’s tackling the “compound error” problem that makes multi step AI workflows unreliable, and will use the funding to accelerate product development and go to market expansion. - learn more
                              • Co-led by CIV, Unlimited Industries raised a $12M seed round (alongside Andreessen Horowitz) to scale its “AI-native construction” approach to designing and building major infrastructure projects. The company says its platform can generate and evaluate massive numbers of design configurations to optimize for cost, safety, and performance, cutting pre-construction engineering timelines from months to weeks, and it is initially focusing on projects that rapidly expand U.S. power capacity for things like data centers, critical minerals, and advanced manufacturing. - learn more
                              • With Hyperion Capital participating (alongside Amplify Venture Partners, Spark Capital, Tamarack Global and others), Antithesis raised a $105M Series A led by Jane Street, which is both an investor and an existing customer. The company says it will use the capital to accelerate its deterministic simulation testing platform and scale go to market efforts across North America, Europe, and Asia, positioning the product as “critical infrastructure” for teams running complex distributed systems. - learn more
                              • With XO Ventures participating, Orq.ai raised an oversubscribed €5M seed round led by seed + speed Ventures and Galion.exe to help enterprises build, deploy, and manage production grade AI agents with stronger control over data, behavior, and compliance. The company says the funding will accelerate expansion of its platform, including its newly launched Agent Studio and managed runtime, as it pushes to close the “AI production gap” for companies moving beyond demos into real deployment. - learn more
                              • Untapped Ventures participated in Lemurian Labs’ oversubscribed $28M Series A, co-led by Pebblebed Ventures and Hexagon, as the company builds a software-first platform designed to run AI workloads efficiently across any hardware and across edge, cloud, and on-prem environments. Lemurian says the funding will help it expand engineering, accelerate product development, and deepen ecosystem collaborations aimed at reducing vendor lock in and infrastructure costs. - learn more
                              • Fifth Wall and Park Rangers Capital participated in Ridley’s $6.4M seed round, which Fifth Wall led, backing the company’s push to rebuild the real estate process around consumers with fewer commission-heavy frictions. Ridley says the capital will help launch an AI-powered buy-side experience that surfaces private, for-sale, and “soon-to-be-listed” homes using predictive analytics, while also expanding its commission-free seller tools and “Preferred Agents” network for on-demand support. - learn more
                              • Anthos Capital participated in Kalshi’s $1B Series E at an $11B valuation, a round led by Paradigm with other backers including Sequoia, Andreessen Horowitz, Meritech, IVP, ARK Invest, CapitalG, and Y Combinator. Kalshi says its trading volume now exceeds $1B per week across 3,500+ markets, and it will use the new capital to accelerate consumer adoption, integrate more brokerages, strike news partnerships, and expand product offerings. - learn more

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                                              Perelel, the LA startup quietly fixing women’s health

                                              🔦 Spotlight

                                              Happy Friday LA!

                                              While the market obsesses over the latest AI tool, one of the most interesting checks this week went to something more basic and much harder to fake: women’s health.

                                              Perelel, a doctor founded, research backed supplement company for women, just raised 27 million dollars in growth funding led by Prelude Growth Partners, with existing investors including Unilever Ventures, Willow Growth Partners and Selva Ventures coming back in. Co founded by CEO Victoria Thain Gioia, who comes from a background in finance and operating roles at consumer brands, former media executive Alex Taylor, and OB GYN Dr. Banafsheh Bayati, the company has spent the last five years quietly building a profitable business that has doubled revenue year over year and has some of the strongest subscriber retention in its category.

                                              Image Source: Perelel

                                              The wellness aisle is crowded with influencer brands and one size fits all multivitamins. Perelel is trying to be the adult in the room. The team designs products with OB GYN input, clinical backing and formulas tailored to specific chapters of a woman’s hormonal life, from fertility and pregnancy to postpartum, perimenopause and beyond. Most of its line now carries a Clean Label Project Purity Award, which is a polite way of saying they’re willing to have someone else check what’s actually in the bottle.

                                              This round is less about a splashy launch and more about upgrading the cap table and the support system. The founders used the raise to buy out early angel investors and bring in Prelude Growth, a women-founded firm with a track record in modern consumer health and beauty. The new capital is aimed at deeper research, more life stage specific products and broader distribution rather than chasing the trend of the month.

                                              In a category that has historically treated women’s health as an afterthought, a clinically serious, women led company raising growth capital to build a full lifecycle platform feels like a meaningful data point. Scroll down for this week’s LA venture deals, funds and acquisitions.

                                              🤝 Venture Deals

                                                  LA Venture Funds

                                                  • Anthos Capital participated in Kalshi’s new $1B funding round, which values the CFTC-regulated prediction market platform at $11B and was led by returning investors Sequoia Capital and CapitalG alongside Andreessen Horowitz, Paradigm and Neo. The capital will help Kalshi scale its event-contracts exchange, expand beyond politics into areas like macro data and business events, and compete more aggressively with rival prediction platforms as institutional and retail interest in trading real-world outcomes grows. - learn more
                                                  • UP Partners participated in Point One Navigation’s $35M Series C round, backing the San Francisco-based precise location startup alongside lead investor Khosla Ventures and fellow existing investors IA Ventures and Alumni Ventures. The company provides centimeter-level GNSS correction and positioning services for “physical AI” applications like autonomous vehicles, robots and smart equipment, and plans to use the new funding to expand its Polaris RTK network, enhance its location platform and grow its team across R&D, OEM integrations and international operations. - learn more
                                                  • Embark Ventures participated in QSimulate’s latest seed financing, which brings the Boston-based quantum simulation startup’s total funding to just over $11M. The company also launched QUELO v2.3, a new generation of its quantum-powered drug discovery platform that uses real-time quantum mechanics to model drug–protein interactions far faster than traditional methods, and it plans to use the capital to scale operations and support growing collaborations with major pharma and tech partners. - learn more
                                                  • Cultivate Next, Chipotle Mexican Grill’s venture fund, participated in Athian’s $4M Series A round, backing the Indianapolis-based startup alongside Ajinomoto Group Ventures, Mondelēz International’s Sustainable Futures platform and a roster of existing strategic investors from across the livestock and food value chain. Athian, founded in 2022, operates a platform that aggregates, verifies and monetizes on-farm greenhouse gas reductions so food brands can hit their Scope 3 climate targets, and it says it has already facilitated $18M in payments to farmers as it expands its protocols, species coverage and international footprint. - learn more
                                                  • Fika Ventures joined Coverbase’s $16M Series A as a returning investor from the seed round, backing the company alongside lead investor Canapi Ventures and others. The San Francisco based startup uses AI agents to automate vendor procurement and third-party risk review for regulated enterprises, serving customers like Coinbase, Okta and Nationwide, and the new funding will help it expand into contract management, continuous security monitoring and a larger go-to-market team. - learn more
                                                  • BroadLight Capital and HeartBeat Ventures are among the investors backing Function Health’s $298M Series B round, which values the company at $2.5B and supports its push to become a new standard in proactive, data-driven healthcare. The Austin-based startup offers a membership platform that combines extensive lab testing with AI to help people track and manage their health, and it’s using the new capital to launch its Medical Intelligence Lab, an initiative aimed at turning that data into personalized medical insights at scale. - learn more
                                                  • Hallwood Media joined Menlo Ventures and other investors in Suno’s $250M Series C round, which values the AI music startup at $2.45B. The Cambridge based company lets users generate fully produced songs from text prompts and is using the new funding to expand tools like its Suno Studio workstation and next-generation music models, even as it navigates high-profile copyright lawsuits from major record labels. - learn more
                                                  • Upfront Ventures joined the $7M seed round for alphaXiv, investing alongside co-leads Menlo Ventures and Haystack, plus Shakti VC, Conviction Embed and several high-profile angels. The San Francisco based company runs a platform that helps AI practitioners and researchers discover, compare and apply cutting-edge AI papers, benchmarks and implementations, and it plans to use the new funding to further bridge the gap between fast-moving AI research and real-world production deployments. - learn more
                                                  • Regeneration.vc joined TULU’s $37M Series A extension as an existing investor, backing the company alongside GreenSoil PropTech Ventures, Bosch Ventures, New Era Capital Partners and others. TULU runs an AI powered product access platform that installs shared, IoT enabled units inside residential and commercial buildings so residents can rent or buy items like appliances, e scooters and household essentials on demand, and the new funding will help the company scale its “TULU Brain” data engine and expand its footprint beyond the 500,000 residents it already serves across North America and Europe. - learn more
                                                  • WndrCo has joined Method Security’s $26M combined seed and Series A round, alongside Andreessen Horowitz, General Catalyst, Blackstone Innovations and others. The startup, which operates out of New York and Washington DC, is building an autonomous cyber platform that combines offensive and defensive tools into a digital twin of an organization, helping US government agencies, the Department of Defense and large enterprises continuously test and strengthen their defenses against AI driven threats, a thesis that fits neatly with WndrCo’s focus on infrastructure and security. - learn more
                                                  • Coral Tree Partners has led a new Series B round for KERV.ai, backing the Austin based company as it scales its AI-powered contextual commerce and video advertising platform. The funding will be used to invest in R&D, technology, talent and infrastructure so KERV.ai can further expand its interactive, shoppable video solutions and first-party data targeting tools for brands, agencies and publishers, while pushing into new markets and strategic partnerships. - learn more
                                                  • CIM Group and Group 11 are backing Venn’s new $52M Series B, with CIM co-leading the round alongside NOA and Group 11 re-upping as an existing investor. The New York and Tel Aviv based company builds an operating system for multifamily housing that unifies data and workflows so landlords and operators can run buildings more efficiently and treat them like modern consumer brands. Over the last 18 months, Venn says it has expanded across dozens of U.S. states, partnered with hundreds of owners and operators, and grown annual recurring revenue ninefold, setting up this round to fuel further product development and market expansion. - learn more
                                                  • Walkabout Ventures led Barker’s $3.5M seed round, backing the New York based fintech as it builds warrantied AI valuations for illiquid, hard-to-price assets in asset-backed lending. Barker’s platform uses an “agentic valuation system” and insurance from Munich Re to warranty its AI-generated prices on assets like aircraft, equipment, art and GPUs, so lenders are protected if the collateral ultimately sells for less than the model predicted, and the new funding will help the company expand into more asset classes and deepen partnerships across banks and private lenders. - learn more
                                                  • Freeflow Ventures joined Erg Bio’s $6.5M seed round, investing alongside lead Azolla Ventures, Chevron Technology Ventures, Plug and Play and other strategic backers. Erg Bio is developing its Aspire platform, a flexible, low-temperature pretreatment and catalytic process that turns agricultural and forestry waste into intermediates for synthetic aviation fuel and critical biobased chemicals, and the new capital will help scale the technology, expand engineering and bioprocessing teams, and move toward pilot-scale demos. - learn more
                                                  • Pinegrove Venture Partners participated in Ramp’s new $300M financing round, joining Lightspeed Venture Partners and a long list of existing and new backers as the company’s valuation hit $32B. The New York based spend management and corporate card platform now generates over $1B in annualized revenue, serves more than 50,000 business customers and processes upwards of $100B in annual purchase volume, and this fresh capital will support continued product expansion and enterprise growth. - learn more
                                                  • Alexandria Venture Investments and B Capital joined Solve Therapeutics’ new $120M financing round, backing the San Diego based biotech alongside lead investor Yosemite and a broader syndicate that includes Merck & Co. and other life sciences funds. The company is developing next-generation antibody-drug conjugates for solid tumors using its proprietary CloakLink linker platform, and it plans to use the capital to advance its lead programs SLV-154 and SLV-324 through Phase 1b trials and further build out its ADC and diagnostics pipeline. - learn more
                                                  • Factorial Funds joined Sakana AI’s $135M Series B round, backing the Tokyo-based startup as it doubles down on building efficient, Japan-focused AI models rather than chasing ever-larger, compute-heavy systems. The financing, which values Sakana at about $2.65B, will help expand its “sustainable AI” research and grow its team as it rolls out sovereign, culturally tailored AI solutions for Japanese enterprises and sectors like finance, manufacturing, and government. - learn more
                                                  • Smash Capital joined AVP and other investors in backing Flatpay’s latest round, which raised roughly €145–170M and crowned the Danish SMB payments startup as Europe’s newest fintech unicorn at around a €1.5B valuation. The company, which offers flat-rate card terminals and POS systems for small merchants, has scaled to roughly 60,000 customers and over €100M in ARR, and will use the fresh capital to accelerate European expansion, deepen its product stack and significantly grow headcount. - learn more
                                                  • Fusion joined No Barrier’s oversubscribed $2.7M seed round, investing alongside lead backers A-Squared Ventures, Esplanade Ventures and Rock Health Capital to scale the company’s AI-first approach to medical interpretation. The San Francisco based startup integrates real-time, HIPAA-compliant language interpretation into hospital systems and EHRs across 40+ languages, and will use the new funding to expand deployment across U.S. care settings and further reduce health disparities for patients with limited English proficiency. - learn more
                                                  • Matter Venture Partners joined Vertex Ventures and other global investors in backing Ruochuang Technology’s Pre A round, which totals tens of millions of dollars to fuel the company’s next stage of growth. The startup develops low speed robotics and related IoT hardware, spanning technology R and D, device manufacturing and sales, and this new capital will help it deepen intelligent hardware research and expand its market footprint as demand for smart manufacturing and IoT applications accelerates. - learn more
                                                  • B Capital joined Shipday’s $7M Series A as a participating investor, re-upping after leading the company’s 2023 seed round and backing the Menlo Park–based startup alongside co-leads ECP Growth and Ibex Investors. Shipday provides an AI-powered last-mile delivery and logistics platform for SMBs like restaurants and local retailers, and it plans to use the new funding to build out features such as its AgentFlow automation engine, deepen integrations, and expand its global reach beyond the 5,000 businesses it already serves in 100+ countries. - learn more
                                                  • MANTIS Venture Capital participated in Bedrock Data’s $25M Series A round, joining lead investor Greylock Partners alongside Mangusta Capital, Pier 88 Investment Partners and others to back the Menlo Park based data security startup. Bedrock Data provides an AI-native, data-centric security and governance platform powered by its “Metadata Lake,” and it plans to use the new funding to accelerate product development and expand go-to-market efforts as enterprises look to secure data across cloud, SaaS and AI systems at multi-petabyte scale. - learn more
                                                  • TenOneTen Ventures and Wedbush Ventures joined Meadow AI’s $6M in total funding, including a $4.5M seed round they backed alongside co-lead Leadout Ventures and other investors. The Seattle-based startup is emerging from stealth with a multimodal AI platform that helps restaurants and retailers monitor real-time operations and automate “secret shopper” audits across 10–300-location chains, already driving more than $2.5M in contracted ARR as it targets further growth in physical retail. - learn more

                                                        LA Exits

                                                        • Neotech, a long-time provider of high-reliability electronic manufacturing services, has been acquired by private equity firm Arkview Capital in a deal that marks a major new chapter for the company. With Arkview as its new owner, Neotech plans to strengthen its balance sheet, invest in next-generation manufacturing, and expand its capabilities across core markets like defense, aerospace, medical and industrial electronics, while continuing to emphasize quality, reliability and customer service. - learn more

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