Greed and Misaligned Incentives Pose a Greater Threat to Journalism Than Chatbots

Lon Harris
Lon Harris is a contributor to dot.LA. His work has also appeared on ScreenJunkies, RottenTomatoes and Inside Streaming.
Greed and Misaligned Incentives Pose a Greater Threat to Journalism Than Chatbots
Evan Xie

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Earlier this week, Vice’s Motherboard blog related a story about an Air Force simulation involving an AI-enabled drone. In a scenario that felt not just indebted to but literally pulled from the pages of classic sci-fi horror storytelling, USAF Chief of AI Test and Operations Col. Tucker “Cinco” Hamilton claimed that the AI drone determined that it would more easily accomplish its mission goals without having to coordinate with a human operator. As a result, the drone circumvented its programming and attempted to kill the human operator. According to a presentation and blog post written by Col. Hamilton for the UK’s Royal Aeronautical Society, even after being told that it would lose points for killing its operator, the AI proposed destroying the entire communication tower linking it with its human counterpart.


It’s clear why this story proved tantalizing from an AI journalism perspective. It has a bit of everything: the threat of violence, an insider’s look at how AI technology is being applied in real-world scenarios, and of course a “doomsday” narrative that feels more than a little indebted to James Cameron’s beloved “Terminator” franchise and its villainous SkyNet militarized AI system. There’s just one problem with the Col. Hamilton’s story… it’s not actually true.

Updates from both Insider and Vice initially suggested the simulation was not actually conducted by the Air Force, and later confirmed no simulation had actually taken place at all. In fact, Col. Hamilton was just describing a “thought experiment” that originated outside of the US military about potential outcomes of AI drone warfare. In a new statement, Col. Hamilton says “We've never run that experiment, nor would we need to in order to realize that this is a plausible outcome.” Which kind of sounds a lot like “I made it all up.”

AI doomerism is a new beat for journalists

If you thought that perhaps such a grievous error would give publications a moment’s pause about the breathless tone and pace of their AI coverage… you would be mistaken. A Thursday piece from USA Today leads with President Joe Biden’s comments about AI to graduates of the Air Force Academy in Colorado Springs: “It's not going to be easy decisions, guys. I met in the Oval Office with eight leading scientists in the area of AI. Some are very worried that AI can actually overtake human thinking and planning.”

It’s true that Biden met on May 5 with CEOs from leading AI companies like Google and Microsoft to discuss their technology. But just repeating an 80-year-old layperson’s vague takeaways from a meeting he had one month ago with the most passionately outspoken advocates of said technology might not be the best and most accurate way to encapsulate its challenges and dangers. Even if he is the President. Nonetheless, the headline boldly states PRESIDENT BIDEN WARNS ARTIFICIAL INTELLIGENCE COULD “OVERTAKE HUMAN THINKING”

Even tech stories that aren’t actually about AI are getting swept up in the hype, as publications attempt to goose traffic by pushing the valuable, highly-searched AI-related keywords on to every new webpage that they can.

A Fox News story on Friday describes new artificial skin research from Stanford University, which can now recognize when it’s been damaged or injured and enable a self-healing protocol. But while self-healing synthetic skin is a worthwhile scientific breakthrough all on its own with obvious beneficial applications in the field of medicine, the Fox report leads with a dire warning that “robots could soon be cloaked in human-like synthetic skin…”

Wait for it…

“Similar to the cyborg assassin of the ‘Terminator’ movie franchise.”

Never mind that the original T-800 design from the first film doesn’t even have self-healing skin. Remember? When Arnold’s face gets damaged, it stays that way for the rest of the film, and you can see his metal skull protruding from underneath.

It’s not difficult to understand why this is happening

AI proves something of a perfect storm for lazy journalism and “fake news.” There’s been a remarkable wave of venture capital and investment dollars flooding into the sector, so a lot of technologists and their backers are now heavily incentivized to promote AI and get people excited about its applications. AI apps and their outputs have repeatedly gone viral on social media and now millions of clicks and views each day, making them extraordinarily popular targets for websites and apps that rely on search traffic or trending posts on social media.

For writers, there’s just a lot more activity in the AI space today than, say, crypto or the metaverse or even traditionally reliable clickbait-y topics like streaming TV and gaming. As long as everyday readers and consumers of internet content remain fascinated by AI, and curious about what it can do, it’s unlikely we’ll see an end to the daily crush of breathlessly excited coverage.

This isn’t even a new phenomenon

A Guardian editorial from 2018 already complained about the unreliability of the media’s AI reporting, which Carnegie Mellon computer scientist Zachary Lipton referred to as “sensationalized crap.” Broad interest in topics like machine learning, according to Lipton, had led to a “misinformation epidemic” that was creating unrealistic expectations for the technology and potentially threatening its future progress. A 2019 piece from Scientific American referred to many of the press’ claims about AI’s potential as “greatly overblown.”

Then as now, the tech media has a baseline responsibility to get the details right, even when it’s eagerly collaborating in entrepreneurs’ and investors’ efforts to drive interest in a new innovation or field. As the Vice story in particular makes clear, the mad rush for fresh AI stories and content means that, at least sometimes, due diligence isn’t getting done as thoroughly as it should, and sources and claims aren’t always being properly vetted.

Everyone loves a story about killer robots

A new piece this week in The Atlantic looks specifically at the AI Apocalypse claims, which remain entirely in the realm of science fiction, despite how frequently they’re now repeated in mainstream news publications. As University of Washington computational linguist Emily Bender explains, doomsday AI scenarios all rest on the same unspoken assumption: this technology is already extremely powerful, and it’s virtually guaranteed to become even more powerful, so “you’d be a fool not to invest.” Technology strategist Rachel Coldicutt makes a similar point in a Medium post this week. If we assume that AI apps are “unworldly, goldlike, and unknowable,” this implies that “the people who created them must be more than gods.”

Rather than a runaway train speeding unavoidably toward the end of human civilization, AI Now Institute co-founder Meredith Whittaker points out that AI technology is – so far– evolving “incrementally.” It may take over more and more jobs that were formerly filled by humans, and improve at all sorts of everyday tasks over time, but there’s no reason to suspect it will suddenly break free of its bonds and decide to independently kill all humans, or that we’d at some point lose our ability to pull the plug on our AI systems and invent something else instead.

Rather than apocalyptic scenarios, Whittaker and other like-minded writers and commentators fear the more immediate dangers of AI applications that are already here: misinformation, bias, the creation of nonconsensual pornography, labor violations, copyright infringement, and so forth. These real, everyday disadvantages to pushing AI apps into every facet of our lives really could use more attention and coverage from journalists, but they lack the clickiness of stories about armed killer robots.

Even honest reporting about AI embellishes their actual threat

In late May, a fake photo that appeared to depict an explosion near the Pentagon in Washington DC circulated online that was almost certainly created in Midjourney or a similar generative AI app. But though the hoax photo was widely shared on social media, and covered by just about every major media outlet… it doesn’t appear to have fooled all that many actual human people.

A Twitter search reveals that most tweets about it were discussing the fact that it’s fake. The Washington Post notes that the image ‘appears to have done little immediate damage,” and that Twitter suspended the account – which was posting as a Bloomberg-affiliated feed – within about 20 minutes. (The building featured in the image isn’t even The Pentagon.)

A new piece from Harvard Business Review suggests that the roots of the problem might be very deep indeed, stemming from the basic way we define and discuss “artificial intelligence.” HBR argues that in most of our practical everyday modern scenarios, we don’t even need true AI, just advanced forms of machine learning. AI, writer Eric Seigel argues, is functionally too vague at this point to even be useful, and overpromises about what most of this technology is and it actually works. As other writers have previously pointed out, widespread and careless use of the term “AI” has also created confusion about Artificial General Intelligence (AGI), the still far-off notion of truly conscious, sentient machines. He suggests the straight-forward solution that we stop using AI to refer to non-AGI developments, and go back to “machine learning.”

But of course, this has the negative consequence of being a lot less sexy, and therefore clickable as a link on a search engine result or social media, and therefore less appealing to journalists, their editors, and the subjects about whom they’re writing. As long as reality remains at least somewhat at odds with public perceptions and interest about the technology, it’s sadly likely this misleading or distracting coverage will continue.

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Your Bank Wants to Cancel Your Subscriptions

🔦 Spotlight

Hello, LA.

Somewhere between the streaming service you still use and the free trial you forgot to cancel, recurring payments have become a surprisingly complicated part of modern financial life.

Los Angeles-based ScribeUp believes your bank should help manage them.

The fintech company raised a $13M Series A led by Curql, with participation from Mucker Capital and Service Ventures. The financing includes $10M in equity and a $3M venture debt facility, bringing ScribeUp new capital to expand its team, accelerate sales and further develop its AI-powered bill-management technology.

The product is designed to live directly within the apps of banks, credit unions, fintechs and neobanks. Instead of simply showing customers that a recurring charge occurred, ScribeUp gives them tools to do something about it.

That could mean canceling a forgotten subscription, changing a payment method, accessing an advance or exploring refinancing options for an outside loan, all without leaving the financial institution’s app.

It sounds like a useful feature. It is also part of a much larger contest over who gets to manage the consumer’s financial life.

For years, banks have held customers’ money while third-party apps have increasingly helped them understand and manage it. Budgeting platforms organize spending. Subscription services identify recurring charges. Fintech apps recommend ways to save, borrow or invest.

Now AI assistants are beginning to combine those functions into a single interface capable of not only analyzing financial information, but acting on it.

That creates a risk for traditional financial institutions. If consumers begin turning to an outside app whenever they need to cancel a service, manage a bill or make a financial decision, their bank could become little more than the infrastructure beneath someone else’s customer experience.

ScribeUp offers banks a way to compete without building that technology themselves.

Its platform combines recurring-payment information with the financial context a bank already has, including balances, cash flow and payment timing. That allows a financial institution to do more than flag an upcoming charge. It can potentially recommend and execute an action based on the customer’s broader financial position.

ScribeUp says its technology is already used by more than 60 banks, credit unions, fintechs and neobanks. It can be added through an API, software development kit or embedded interface, allowing institutions to introduce bill-management features without creating the underlying infrastructure from scratch.

The new funding will support more advanced AI capabilities that can take action across different billers. That distinction matters. The first generation of personal finance software helped people see where their money was going. The next generation wants permission to do something about it.

For banks, the opportunity is straightforward: become more useful before another app takes their place.

For consumers, the appeal may be even simpler. Most people do not want another financial dashboard. They want the unwanted charge to stop.

The next battle in banking may not be over who holds your money.

It may be over who gets to press cancel.

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

🤝 Venture Deals

    LA Companies

    • International Dance League raised a $15M Series A led by Elysian Park Ventures, with participation from Sony, KB Partners, APEX, Yamaha Music Innovations Fund and October Ventures. Following a debut season that sold out all six events and generated 2B views, IDL will use the funding to expand its tour, strengthen team and dancer operations, improve broadcast production and develop new fan experiences for 2027. - learn more
    • Santa Fe Springs-based DrizzleX raised a $6.8M Series A-2 led by Israel Investment Fund Group, with several of the water-management platform’s own customers also investing. The company will use the funding to expand sales, streamline hardware manufacturing, build partnerships and develop new products that help property owners detect leaks, reduce water use and lower operating costs. - learn more
    • POV Beauty raised an undisclosed Series A led by Silas Capital, with participation from RÉDO Capital and existing investor Imaginary Ventures. The skin-prep brand will use the funding to build on its nationwide Sephora launch, expand its team and TikTok Shop presence, and develop more skincare-makeup hybrid products. - learn more

    LA Venture Funds
    • Chapter One participated in Warp Sciences’ $215M Series A, which was led by Lightspeed and included a large group of venture firms and angel investors. The company is building AI-powered, increasingly automated laboratories that will manufacture and test molecules for drug developers, aiming to accelerate preclinical research while expanding scientific infrastructure in the U.S. - learn more
    • Capital Group participated in Legora’s $550M Series E, which was led by Atreides Management and valued the legal AI company at $8.8B. Legora will use the funding to expand across the U.S. and international markets while developing new capabilities for its agentic operating system, which is used by more than 140,000 legal professionals. - learn more
    • Group 11 participated in CapitalOS’ $21.9M Series A, which was led by LGVP and included WEX Venture Capital, Great North Ventures and Night Capital. CapitalOS will use the funding to scale its infrastructure, which enables B2B software platforms to quickly offer financial products while outsourcing functions such as compliance, risk management and underwriting. - learn more
    • Starshot Capital participated in IMIO’s $12M funding round, which was led by Sofinnova Partners and included Chipotle’s Cultivate Next, Grow Together Salinas, Earth Foundry and Serra Ventures. The agricultural biotechnology company will use the capital to build a Chicago headquarters, laboratory and manufacturing facility for its freeze-dried microbial products, which are designed to improve soil health and crop yields. - learn more
    • SUM Ventures participated in Vectorial’s $3M seed round, which was co-led by Smilegate and SenseAI Ventures and included several investors connected to UC Berkeley and Stanford. The startup will use the funding to scale its AI-powered consumer research platform, which lets companies test products, marketing campaigns and AI agents against simulated audiences before launching them publicly. - learn more
    • Wave Function Ventures participated in Stellios Technologies’ oversubscribed $5M pre-seed round alongside Sofreh Capital, Cubit Capital, Mana Ventures, Atoms & Bits and other investors. The Austin-based company will use the funding to deliver its first high-power microwave systems, establish domestic research and manufacturing facilities, grow its team and advance technologies spanning directed energy, compact fusion and next-generation propulsion. - learn more
    • Upfront Ventures participated in Daytona’s $60M Series B, marking the Santa Monica firm’s third investment round with the company. Led by FirstMark Growth, the financing valued Daytona at $1B and will help the startup expand sales and engineering for its cloud infrastructure, which provides secure virtual computers where AI agents can execute tasks. - learn more
    • Core Innovation Capital participated in Delegance Brokerage’s $3.1M pre-seed round, which was led by Grit Capital Partners and included Gilgamesh Ventures and Outside VC. The AI-powered commercial insurance brokerage will use the funding to hire licensed brokers and engineers and expand partnerships as it promotes a flat 5% fee model in place of traditional commissions. - learn more
    • Core Innovation Capital participated in Prism Data’s $20M Series A, which was led by Story Ventures and included FINTOP Capital, Obvious Ventures, 1st & Main Growth Partners and Mana Ventures. Prism will use the funding to expand its cash-flow underwriting technology, AI infrastructure and data science team while growing across the U.S. and Canada and preparing for international expansion. - learn more

    LA Exits

    • Sanctuary has been acquired by WSG Brands, adding the contemporary women’s label to a portfolio that includes Von Dutch, Nasty Gal and Allbirds. The purchase price was not officially disclosed, though earlier documents placed it at $67M; WSG plans to expand Sanctuary internationally and into new categories, while founders Ken and Debra Polanco will remain involved. - learn more
    • SecureNet Solutions was acquired by CompassMSP, expanding the managed IT and cybersecurity provider’s presence on the West Coast. The deal gives SecureNet’s real estate, healthcare and professional services clients access to CompassMSP’s national cybersecurity, compliance and advisory resources while retaining their existing service team; financial terms were not disclosed. - learn more

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      Hello Sunshine Sold for More Than $900M. Now Reese Witherspoon Is Buying It Back.
      Image Source: Hello Sunshine

      🔦 Spotlight

      Hey there, LA.

      In Hollywood, every successful story eventually gets a sequel. This one brings Reese Witherspoon back to the company she built.

      Five years after selling control of Hello Sunshine in a deal worth more than $900M, Witherspoon is partnering with French production group Mediawan to buy back the Los Angeles media company.

      The reported purchase price is in the low-to-mid eight figures, significantly below Hello Sunshine’s valuation when Candle Media acquired a controlling stake in 2021.

      That difference tells a larger story than any single Hollywood transaction.

      Hello Sunshine was one of the most prominent acquisitions made during the streaming boom, when platforms were spending aggressively and investors placed enormous value on production companies with recognizable founders, established audiences and libraries of intellectual property.

      Witherspoon had built all three.

      Founded in 2016, Hello Sunshine developed its business around stories centered on women, producing projects including “Big Little Lies,” “The Morning Show,” “Little Fires Everywhere” and “Daisy Jones & The Six.” It also turned Reese’s Book Club into an influential audience and discovery platform that now reaches 6.2 million readers and drives approximately $900M in annual U.S. book sales, according to the company.

      By 2021, that combination of talent, intellectual property and direct audience access looked like the foundation of a next-generation media empire.

      Candle Media, backed by capital from Blackstone, acquired Hello Sunshine as part of a broader effort to assemble a portfolio of entertainment brands. The company also purchased businesses including Moonbug Entertainment, ATTN: and Faraway Road Productions.

      Then the streaming market changed.

      Entertainment companies became more disciplined about content spending. The race to accumulate subscribers gave way to pressure for profitability. Production budgets tightened, consolidation slowed and some of the valuations assigned during the streaming boom became difficult to maintain.

      Hello Sunshine’s return to founder-led ownership reflects how dramatically the media landscape has changed since 2021. It also gives Witherspoon an opportunity to regain greater influence over the company at a moment when its core assets may matter more than its former valuation suggests.

      Under the new ownership structure, Hello Sunshine plans to refocus on premium film and television, Reese’s Book Club and new storytelling and distribution formats. Mediawan brings an international production network, while Witherspoon brings something harder to manufacture: a trusted personal brand and an audience willing to follow her recommendations from books to screens.

      That relationship with consumers is increasingly valuable in a fragmented media market. Studios can finance productions. Streaming services can distribute them. Far fewer companies can reliably convince millions of people to care before a project is even released.

      For Los Angeles, the deal reflects the increasingly fluid boundary between entertainment company, consumer brand and technology-enabled audience platform. The most resilient media businesses may not be those producing the greatest volume of content, but those that own a direct relationship with a specific community.

      The first Hello Sunshine deal captured the optimism of the streaming era.

      The second may offer a more focused model for what comes next, with the company once again guided by the founder who understood its audience from the beginning.

      Hollywood loves a comeback story.

      This time, the company is making one too.

      LA Tech Week’s Final Stretch

      Still making the most of LA Tech Week? We have organized the remaining events by location to make planning the weekend a little easier:

      Event schedules may change, so confirm the latest details with the organizer before heading out.

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

      🤝 Venture Deals

        LA Companies

        • Goodweek raised a $12M seed round led by Adara Ventures to expand its AI management platform for small and midsize businesses. The company brings tools such as ChatGPT, Claude, Gemini and Mistral into one governed workspace and will use the capital to accelerate sales and expand into Latin America and Asia. - learn more

        LA Venture Funds
        • Fika Ventures co-led Otter Health’s $8M seed round alongside Evidenced Capital, with participation from Slow Ventures, Metrodora, CoFound Partners, Patient Capital, SemperVirens and Layout Ventures. The startup will use the funding to scale its AI-powered platform, which helps healthcare payers and providers reduce unnecessary care and manage quality without relying as heavily on traditional prior authorization. - learn more
        • Nant Capital co-led Prolific Machines’ $50M Series B2 alongside Atoms & Bits, bringing the biotechnology company’s total funding to more than $100M. Prolific will use the capital to scale its light-controlled biomanufacturing platform, expand pharmaceutical and biotech programs and begin early work on tissue and organ fabrication. - learn more
        • Family Fund participated in Allara’s $30M funding round alongside new investors Camino Partners and Foreground Capital, while existing backers including Index Ventures and GV increased their commitments. The women’s healthcare company will use the capital to expand AI-enabled care, grow its provider and enterprise partnerships and advance research into hormonal, metabolic and reproductive conditions. - learn more
        • Vida Ventures participated in Soufflé Therapeutics’ oversubscribed $135M Series B, which was led by Juvia Group. The biotech will use the funding to move three lead programs into clinical trials for muscular dystrophy, heart failure and muscle and metabolic disorders while advancing its broader pipeline of targeted RNA therapies. - learn more
        • FJOR participated in LightSprint’s $6.1M seed round, which was led by 645 Ventures. The AI software platform will use the funding to expand its enterprise product and grow its engineering and go-to-market teams as it helps employees across departments make changes to company codebases while keeping engineers in control. - learn more
        • Muse Capital participated in Collective X Health’s oversubscribed $3.2M pre-seed round, which was co-led by Council Capital and Anthemis Female Innovators Lab Fund. The women’s health intelligence startup will use the funding to expand its female-focused research and data platform, meet growing enterprise demand and support new research aimed at closing the women’s health data gap. - learn more
        • Act One Ventures participated in Intake AI’s $2.5M pre-seed round, which was led by Kapor Capital. The startup is building AI agents that automate clinical-trial setup and operations, helping research teams turn protocols into documents, search study materials and transfer approved forms into existing systems. - learn more
        • M13 participated in Ultra’s $62M financing, which included a $50M Series A led by Framework Ventures. The Brooklyn-based robotics startup will use the capital to expand deployment of its AI-powered warehouse robots, which handle packing, sorting and other fulfillment tasks and have already processed more than 500,000 orders. - learn more

        LA Exits

        • Farcaster is being acquired by Balaji Srinivasan’s Network School from Neynar, marking the decentralized social network’s second change in ownership this year. The deal includes Farcaster’s app, protocol repositories and related products, with its new owner planning to introduce a rules-based “social smart contract” governing full participation on the platform; financial terms were not disclosed. - learn more
        • Creator Authority has been acquired by Billion Dollar Boy Group, bringing the agency’s B2B influencer marketing expertise and LinkedIn specialization into BDB’s global creator business. The deal will help Creator Authority scale its work with enterprise brands while strengthening BDB’s presence on the U.S. West Coast and expanding its B2B creator marketing capabilities; financial terms were not disclosed. - learn more
        • Burbank-based CareerArc was acquired by AI hiring platform Humanly, with financial terms undisclosed. The deal combines CareerArc’s recruitment marketing and social recruiting tools with Humanly’s AI-powered candidate engagement, screening and interviewing platform, creating a more connected system for employers managing high-volume hiring. - learn more
        • Ethiqly was acquired by Carnegie Learning from Owl Ventures and the company’s management, with financial terms undisclosed. Carnegie Learning plans to integrate Ethiqly’s AI-powered writing platform into its literacy offerings, helping students improve their writing while giving teachers greater visibility into the drafting, revision and learning process. - learn more

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          How to Navigate LA Tech Week 2026

          🔦 Spotlight

          Happy Friday, Los Angeles.

          Next week, hundreds of tech events will take over the city, bringing founders, investors, engineers and creators together from October 12 through 18.

          Calling LA Tech Week a conference does not quite capture the experience.

          Presented by Andreessen Horowitz, Tech Week is a decentralized collection of panels, workshops, demonstrations and gatherings hosted independently by startups, venture firms and technology companies. There is no convention center or central stage. The programming stretches from Santa Monica and Venice to Culver City, Downtown, El Segundo and beyond.

          In other words, the city is the venue.

          AI remains the dominant theme for 2026, appearing across enterprise software, healthcare, finance, media and the creator economy. The schedule also reflects industries where Los Angeles has built a particular advantage, including aerospace, defense, robotics, advanced manufacturing, entertainment and consumer technology.

          That range is what makes LA Tech Week distinct. It brings together the software companies shaping what comes next with the industries that already define Southern California.

          The challenge is deciding where to show up.

          Our advice: apply early and organize your schedule by neighborhood. Crossing from Santa Monica to Downtown may look manageable on a calendar created by someone who has never driven in Los Angeles.

          To help you spend more time meeting people and less time crossing the city, we have organized each day’s events by location:

          You can also browse the complete official LA Tech Week calendar.

          Plan carefully, but do not fill every minute. The best conversation of the week may be the one that was never on your calendar.

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

          🤝 Venture Deals

            LA Companies

            • El Segundo-based Gallatin AI raised a $50M Series A from new and existing investors including 8VC and Silent Ventures, bringing its total funding to $70M. The defense technology startup will expand its engineering team and advance Navigator, an AI platform that helps U.S. military units coordinate vehicle readiness, supplies, medical logistics and other mission-support operations. - learn more
            • Pasadena-based quantum computing startup Oratomic raised a $475M Series B at a $5.4B valuation, just three months after its Series A. ARCH Venture Partners, Spark Capital, Khosla Ventures, Index Ventures, General Catalyst and Bezos Expeditions co-led the round, bringing Oratomic’s total funding to $775M as it works toward a commercially viable, fault-tolerant quantum computer by 2030. - learn more
            • Torrance-based Fortastra raised a $30M Series A led by First In, with participation from Upfront Ventures, Space Capital, Rsquared, Side Door Ventures, ATX Ventures and existing investors. The company will use the capital to develop its next-generation maneuverable spacecraft, expand its engineering and operations teams and scale production of systems designed to protect critical assets in orbit. - learn more
            • Parallel Systems raised a $100M Series C led by AVP, with participation from Hillspire, Agility Global, Cobalt Capital, Anthos Capital, Congruent Ventures, Riot Ventures and Collaborative Fund. Founded by former SpaceX engineers, the company will use the funding to scale production and commercial deployment of its autonomous, battery-electric Panther rail vehicles, which are designed to make short-haul freight more competitive with trucking. - learn more
            • Gaming studio Gardens Interactive secured more than $35M in a Series B led by Lightspeed, with participation from Sequoia Capital, Index Ventures, Accel, Innovation Endeavors, Zenith Capital and other investors. The company will use the funding to launch and operate its debut social role-playing “strandbox” game, an evolving multiplayer world shaped by players’ actions and interactions. - learn more
            • Outer Spaces raised an $8M pre-seed round led by Upfront Ventures, with participation from Unlock Venture Partners, Mucker Capital and Genius Ventures. The startup is developing outdoor furnishings with integrated solar panels and batteries, turning backyards into sources of clean energy and backup power. - learn more
            • Furientis raised a $25M seed round led by Benchmark at a reported $125M valuation, following a $5M pre-seed announced in May. The defense startup will use the capital to scale production of lower-cost missile interceptors designed to be assembled quickly with readily available components, with a long-term goal of producing 1,000 systems annually at each factory. - learn more
            • Hiyo raised a $20.8M Series B led by Constellation Brands, with returning investor Live Nation also participating. The nonalcoholic beverage company will use the funding to expand its adaptogen- and nootropic-infused social tonics across more than 13,000 retail locations while growing its presence at hospitality venues and live events. - learn more
            LA Venture Funds
            • Navitas Capital participated in Vesta’s $30M Series B, which was led by Conversion Capital and included backing from several major mortgage lenders and financial institutions. The company will use the funding to scale its AI agents across mortgage origination, automating tasks such as application reviews, underwriting decisions and closing-document checks. - learn more
            • MTech Capital led Nettle’s oversubscribed $4.8M seed round, with participation from Project A Ventures, Sure Valley Ventures, Portfolio Ventures and Ventures Together. The insurtech startup will use the funding to expand across the U.S. and Europe while growing its AI platform, which helps commercial insurers identify property risks, accelerate inspections and generate reports. - learn more
            • Bonfire Ventures doubled down on Santé by participating in the company’s $15M Series A, which was led by FINTOP and included other returning investors. The New York startup will use the funding to expand its AI-powered operating system for independent wine and liquor stores, which combines point-of-sale, e-commerce, payments, inventory and marketing tools in one platform. - learn more

            LA Exits

            • Winnow Solutions was acquired by Marina del Rey-based Spring Labs, with financial terms undisclosed. Winnow’s attorney-built library of more than 100,000 state and federal regulatory requirements will become a core part of SpringGRC, helping financial institutions connect changing laws directly to their compliance policies, controls and workflows. - learn more

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