Alaska Airlines’ Brad Tilden: Competitors Make You Better

Spencer Rascoff

Spencer Rascoff serves as executive chairman of dot.LA. He is an entrepreneur and company leader who co-founded Zillow, Hotwire, dot.LA, Pacaso and Supernova, and who served as Zillow's CEO for a decade. During Spencer's time as CEO, Zillow won dozens of "best places to work" awards as it grew to over 4,500 employees, $3 billion in revenue, and $10 billion in market capitalization. Prior to Zillow, Spencer co-founded and was VP Corporate Development of Hotwire, which was sold to Expedia for $685 million in 2003. Through his startup studio and venture capital firm, 75 & Sunny, Spencer is an active angel investor in over 100 companies and is incubating several more.

Alaska Airlines’ Brad Tilden: Competitors Make You Better

This episode was originally released in April 2017. Press Play below to listen.

About this episode's guest:

  • CEO of Alaska Air Group since 2012
  • Has been with the company for 25 years in various leadership roles
  • Closed acquisition of Virgin America in December 2016 for $2.6 billion
  • Holds a commercial pilot's license
  • Learned to play the ukulele from YouTube


Topics covered in this episode:

Press Play to hear the full conversation or check out the transcript below. You can also subscribe to Office Hours on Apple Podcasts and PodcastOne.

Spencer Rascoff: Hey, Brad. Great to see you.

Brad Tilden: Great to see you, Spencer.

Rascoff: I'm a huge user of your product.

Tilden: Thank you.

Rascoff: I'm almost always on your planes, and I'm grateful for it, so thanks for being here.

Tilden: Well, thank you for saying that. I'm a huge user of your product as well. What you guys have built is just amazing, and it's a company that everybody in Seattle's very proud of.

Rascoff: Thank you. Thank you. So like we, you have engaged in transformative M&A.

Tilden: Yeah.

Rascoff: You acquired a huge company from Virgin America. Walk our listeners through the rationale for that acquisition. Tell us how the deal came together, and then we'll talk about the regulatory process around approval.

Tilden: Sure.

Rascoff: So how'd the deal come together and why?

Tilden: Yeah. You know, so some folks listening will know Alaska. Probably others will be less familiar, but we've been around for a long time. We're a high-growth airline. We've grown at 7 or 8 percent a year for 20 years. We've tripled in size in 20 years. But notwithstanding that, the industry structure is changing more rapidly than us with all the bankruptcies and all the consolidation. It used to take nine airlines to make up 80 or 85 percent of the pie. Today, it takes four.

And so we came to a couple of conclusions. One, we're proud of what we do. We think we bring value to our employees and our customers and our communities, and we thought we want to be around. And we just said with the change in the industry structure, it would be better for us if we were larger. So we have been growing organically a lot. We'll continue that relatively high rate of organic growth. But we decided that M&A would be good as well.

Rascoff: Alaska was frequently mentioned as a consolidation candidate for someone else to acquire, but you just decided –

Tilden: You know, other people mentioned that.

Rascoff: [Laughs]

Tilden: I'll just say we've been – as I said earlier, we're proud of the way we run the business, and I think we bring a lot of value to our customers and our employees. And we have never had any interest at all in being acquired. We want to stay Alaska and keep doing what we're doing for 20, 30, 40, 50 years and into the future.

Rascoff: And why Virgin America?

Tilden: I guess, here's the things you say about Virgin America. They're on the West Coast, which is usually attractive to us. When we look at Alaska, we fly to 35 states, 5 countries, but we have real concentrations of loyalty in Alaska, Washington, and Oregon. Virgin's got real strength in California. They've got a great presence in SFO and at LAX. So when you take Virgin America and Alaska, you take our strength in the Pacific Northwest and Alaska, theirs in California, and the whole idea here is that we become the go-to airline for anybody living anywhere on the West Coast.

Rascoff: So the route network was particularly –

Tilden: Super attractive.

Rascoff: OK.

Tilden: That's right.

Rascoff: Actually, let's talk about the regulatory process, first, before we get into the brands and the culture and the integration plans. It took about six months for your deal to get approved. Is that right?

Tilden: It took a bit more. We announced it on April 4 [2016]. I think we closed in mid-December, so a little bit more.

Rascoff: And who needs to approve an airline deal? Is this –

Tilden: The Justice Department.

Rascoff: DOJ and also FAA?

Tilden: No. The FAA doesn't. They will have to approve – we'll have to go to a single operating certificate, which the FAA will have to approve that, but that'll happen a year from now.

Rascoff: OK. And what was that DOJ process like? Was it touch and go, or you were pretty confident that it would get approved?

Tilden: You know, I will say that I think we were always pretty confident that it would get approved. You end up making concessions, and you make small adjustments to the deal to get it approved. But I think we were always confident that it would get approved. It's intensive. There were several trips back to Washington, DC, to talk with these folks. They look at every e-mail you've ever written and anything that's on your hard drive. I don't know. I think Alaska came out of that fine, and we learned something about how you do M&A in the process, and, ultimately, we got the deal done.

Rascoff: So I had my own grilling.

Tilden: [Laughs]

Rascoff: It took us around the same time, six to nine months, for the Zillow-Trulia merger to be approved by the Federal Trade Commission. I guess, in M&A, sometimes the DOJ reviews deals, sometimes FTC. We got FTC. And I made dozens of trips on Alaska, of course –

Tilden: Thank you.

Rascoff: – that Seattle to Dulles redeye many, many times. And we spent a God-awful amount of money on lawyers working through that process. It was very hard on the employees during that period. There was a lot of uncertainty, especially at Trulia, the company that we were acquiring. They didn't know would the deal get through, would they have a job after the deal got through, etc. So what was it like as an employee at Alaska or Virgin America during that waiting period?

Tilden: Spencer, I think you're making a really fair comment. I think I would guess it was harder on Virgin America employees than Alaska. It's a business combination, but Alaska's the acquirer. Probably Virgin employees had some of those anxieties and questions that you're mentioning. You do what you can. That time period's an awkward time period, because if you buy the – if you're successful, every decision the company has made is yours. You get whatever amount of money's in the bank account when you close. So any decision they make in that six or nine months, you inherit.

Rascoff: And you're sort of rooting for a company that might, if the deal doesn't go through, go back to being a competitor.

Tilden: That's right.

Rascoff: I mean, that was our situation between Zillow and Trulia. We were like, “OK. Do we root for them to do well during this period or not?"

Tilden: But because you might become competitors, the most important competitive information, you don't know. Route decisions, pricing decisions, marking decisions, you don't – loyalty, you don't see any of that during the period. And even Virgin America employees, we really had limited opportunity to work with Virgin America employees during the period –

[Crosstalk]

Rascoff: Yeah. I desperately wanted to go speak to Trulia employees in that period and tell them, you know, to hang in there and I know this must be hard, but this will end at some point, and then we'll all be on the same team. But I wasn't allowed to do that.

Tilden: We were able to do a few meetings, but it wasn't – it's nothing like it is now.

Rascoff: Right.

Tilden: Yeah.

Rascoff: So you said the route network was one of the major reasons that you were attracted. Let's talk about the product and the brand. I've flown Virgin America plenty. It's an amazing product, but it's very different, actually, from other airlines, including Alaska. So how would you describe that product, and, more importantly, for our listeners, how are you going to integrate that product, and what are you going to do with these two brands?

Tilden: Yeah. You know, I think the first thing we'd say is there are clear differences. There are also a lot of similarities. Two similarities between both companies – both companies really focus on customers. Both companies win awards – Virgin, Conde Nast Travel and Leisure for years in a row, Alaska, JD Power for nine years in a row. So both do well with customers, and both believe in doing well by customers by getting close with the employees, building alignment with employees, and encouraging our employees to go out and be their greatest. So that binds us.

Having said that, I would say Alaska's maybe a little bit more traditional. We're a little bit more Seattle. Virgin is, people would say, more hip, more, more flair. The mood lighting is big with them. The music is big with them. Uniform's a little bit different. Honestly, I think that's going to be good stuff.

As we move forward, I can tell you now the name of the company is going to be Alaska Airlines, but we're going to separate that from the brand decision. The brand is – we're actually going to incorporate some elements of Alaska but a lot of elements from Virgin America, so –

Rascoff: In the product.

Tilden: In the product.

Rascoff: So I'll get on an Alaska Airlines plane, but it'll be a little more hip than it used to be. It that what [ laughs] –

Tilden: I think you'll see music. I think you'll see mood lighting. I think you'll see satellite – we don't have satellite on our airplanes now –satellite connectivity, really top-notch entertainment system. We're going to adopt a lot of those features.

Rascoff: What about the cabin configuration, which is pretty different? I think Virgin America usually has a small first class, and Alaska has a little larger first class.

Tilden: That's right. So you're asking a great question. We're actually going to go to the Alaska standard there. So what that'll mean is Virgin has eight first-class seats. We're going to go to 12 on some of their airlines, 16 first-class seats on other airplanes. So it'd be a lot more first-class seats.

Everything comes with a price. So with Virgin, you know, they had that beautiful first class seat, but nobody ever upgraded. A Gold 75K never got upgraded into first class. So we'll move to the Alaska model. And one of the things we're really proud of at Alaska is we lead the industry in generosity. So if you're an MVP Gold 75K, even an MVP, you will upgrade into those seats a lot. I think we calculate that Gold 75Ks, 90 percent of the time, you'll be able to upgrade to either premium class or first class. If you're even a Gold, you'll upgrade 70 or 75 percent of the time.

Rascoff: And what about the aircraft selection? So Alaska is famously all Boeing, and I think every plane says, “All Boeing," on it. And Virgin America flies Airbus, I think, right? Have you made a decision about aircraft?

Tilden: No. I mean, I know you would know this from your Trulia/Zillow experience, but you just begin to trust – you put a process in place for everything. It's not a Boeing/Airbus decision. The decision we need to make is it one fleet type versus two. If it's one fleet type, it's definitely Boeing. If it's two, it just means we hang on to these Airbus airplanes Virgin America has. But we're going to take six or eight months in 2017 and make that decision. And you can imagine, there are – I mean, the Airbus airplanes we already own. They're already bought. To actually change them out requires a lot of capital in changeover. So that's an argument against changing. On the flipside, there are huge benefits in an industry like ours to a common fleet type.

Rascoff: So how much does it cost to take a Virgin America Airbus and repaint it and turn it into what will be a newly branded Alaska plane?

Tilden: Like, a lot of questions, it does depend, but it's millions. It's not –

Rascoff: Millions to change a plane?

Tilden: It is. It is. It is.

Rascoff: Wow.

Tilden: The paint is between one and two hundred thousand dollars, but the – it's millions. When you look at sidewalls and the overhead units, the seats, the entertainment, it's millions per airplane.

Rascoff: I was on an Alaska plane the other day that it said, “Employed powered," and it signatures of all the employees. Are there a lot of those, or that's _____ _____ –

[Crosstalk]

Tilden: No. That's the only one of those.

Rascoff: That's the only one. OK. And how many Disney planes are there – the Disneyland ones.

Tilden: You know, we've got three or four. There's Toy Story. There's Disneyland. There's Tinkerbell. There's Cars.

Rascoff: And do they pay you for that?

Tilden: [Laughs] We have a fantastic partnership with Disney. Yeah.

Rascoff: My kids love seeing those, and they feel lucky when they're on them. Let's talk about employee culture and engagement. This is something that you're very focused on, very proud of. And in particular, through the integration, did you change anything about your general approach to employee communication?

Tilden: You know, one of the things that we sort of – we did, Spencer, is the quick answer to your question. Airlines, there's two ways of looking at an airline. There's all these intricacies that need to happen for one flight to depart – when it gets fueled, how the flight plan gets done, when it gets catered, all the moving pieces, everything that needs to happen before departure for one flight a day, and we have 1,200 flights a day. And so I think in the old days, 15, 20 years ago, Alaska spent a lot of time on that stuff, on the process and the computer systems and how the airplane's routed, when pilots or flight attendants flew which trips.

There's another side of the business that I think a lot of airlines have spent less time on, and that's just working with the employees. And it's an MBA term, it's an overused term, but are you actually aligned? Is everybody in that company actually trying to do the same thing?

Rascoff: Now, why do you think the airline industry suffers from that uniquely, because not all industries – is it something about it being – is organized labor related to that?

Tilden: It's complicated. I think we started in a regulated era. Most of these airlines that you would recognize, they started like a utility company as a regulated industry, where you went to the government and said, “Hey, can I fly a new route?" The government said yes or no. And if you flew that route, your fare was calculated as your cost structure plus a certain margin on your costs to provide for –

Rascoff: So the impact of that is they didn't have to focus on building your employee culture, because their profit was kind of preordained by regulators.

Tilden: That's right. That's right. They also didn't have to focus on their cost structure. So 1978, 1979 came, and airlines like Southwest, JetBlue, Frontier, Spirit, Virgin America came onto the scene, and they put a lot of pressure on these old companies and the older airlines, and Alaska was one of them, but we all had to lower our costs. We had to utilize aircraft more. We had to restructure our companies. And the pensions were – and Alaska, we're really proud. We did not file for bankruptcy. But even at Alaska, we had to do some serious restructuring. And I think bottom line, those restructurings were hard on our people.

Rascoff: Because usually, frequently airlines go through bankruptcy so they can renegotiate their labor contracts and get out from under –

Tilden: Or leases.

Rascoff: – the debt or the pensions.

Tilden: Yeah.

Rascoff: And so Alaska never had to do that, but you've maintained good employee relations why? How?

Tilden: You know, I actually think – and I was chatting with one of our labor groups this morning. We had to restructure at Alaska as well. We had to change airplanes. We're slowly getting out of defined benefit pension plans. We did make wage adjustments for some of our groups, but we did it ourselves. If you go back to 2005, I think there are folks that would look at the Alaska Airlines story and say those weren't our greatest days. But when we look back now, we say we did it ourselves. We sat down across the table from our labor leaders. We respected them, and we actually – I personally believe through the process, we built a bond. We built trust, and we built respect for one another.

Rascoff: So isn't one of the issues on airline mergers how to deal with seniority when you're merging the two groups of employees? So how are you doing with that between Virgin America and Alaska?

Tilden: You know, that's actually an interesting thing. Seniority matters a lot. It's the trips you bid and what you get to fly. But interestingly, the airline management doesn't have a lot to do with that. We have a lot to do with the payment scenario and the work rules and the pensions and benefits.

Rascoff: So union leadership?

Tilden: It's between the two unions – seniority integration.

Rascoff: Let me explore the brand decision a little bit more. You acquired Virgin America, deal gets through, and at that point, did you start evaluating what to do with the brands, or you already knew going into the acquisition what you were going to do with the brands and the product?

Tilden: We started the process before we announced the acquisition, but we didn't complete it. Two or three months ago the process completed, I would say.

Rascoff: And to arrive at this decision, the decision of keeping the Alaska – if I understand correctly, you're going to use the Alaska brand, retire the Virgin America brand.

Tilden: That's correct.

Rascoff: But takes some elements of the Virgin America product –

Tilden: That's exactly right.

Rascoff: – and incorporate it into Alaska. Describe how you arrived at that decision. What research did you do? Who's involved in that?

Tilden: We did a ton of research. I can't remember the numbers, but we got insights from thousands of customers. We did maybe 70 or 80 focus groups. We brought lots of our employees into the conversation.

We actually looked at – we took the industry. The industry's basically $100 billion industry. And we took the industry. We broke it down into demand pools. We said, “You and I might be in one demand pool when we're traveling for work. We might be in a different demand pool when we travel to Palm Springs on the weekend." But we started to say what are these different demand pools.

And we said what brands are out there, what space does American have already or Southwest have already? Then we just started to correlate. Said what is the – if you look at the demand side of the equation, what is it that people want. And then if you looked at the supply side, what is it that airlines already providing. Then you look at your own capabilities. What is it that we think we're good at. And candidly, I would say what I think we're good at is we do good with business people, and we do good with higher-end leisure travelers. We have a low-cost, sort of low-fare position, but it's probably not the total no frills airline that you might see out there.

So there was a ton of research done. And as we looked at the research – and then you looked at, you know, what do people feel about the Alaska Airlines name? What do people feel about the Virgin America name, and how should you move forward?

Rascoff: So there were really only four choices available to you as I think through it. You could keep the Alaska brand. You could keep the Virgin America brand and switch Alaska over. You could operate them both simultaneously, which is what we've done at Zillow Group with Zillow and Trulia, or you could launch a brand-new brand.

Tilden: That's right.

Rascoff: Did you have a hypothesis going in, you personally, as to which of those four answers was the right answer before you did all the research and analysis?

Tilden: I think if you talked to folks at Alaska in our leadership team, there were several different hypotheses. I personally thought running two brands at first might be – I thought that might be the way we ended up going. The Alaska brand has an enormous amount of equity, and I also thought that might be a place we went.

As you get through the research, you just sort of – in the airline business, I think our space is different than yours. You look at people, whatever, they need to fly Anchorage to Seattle, and then they're going to fly to San Francisco. They might do Anchorage -Seattle on Alaska, and if you run two brands, do that next leg on Virgin. And there's a little friction there, or people showing up at an airport to pick somebody up or drop somebody off or duplicate costs for airport facilities.

As we looked at it more and more closely, there are people that love the Alaska brand more, and there are people that love Virgin more, but in – so there would be some benefit that you have to acknowledge of running two brands, but there's a cost. And what we concluded was the cost of running two brands is greater than the benefit.

Rascoff: Does the word Alaska in your brand hold you back because people in, you know, Florida or New York think it's, you know, an oddity?

Tilden: Yeah. You know, it's a good question, but I don't think so. I think if you look at Southwest Airlines, you know, nobody expects Southwest to fly in the southwestern part of the United States, even though they fly, they're don't expect them to fly exclusively there. One we talk about in Seattle is Amazon. You know, someone things about Amazon, nobody thinks about the river. And so I think it's a valid question, but there's a lot of historical goodness to Alaska. There's good things we've done for customers and communities and employees. The challenge we have is to go out and to folks that are less familiar with us, help them understand why this is a great company and a great name.

Rascoff: So how do you make decisions? Now that you have this brand of Alaska, and you're trying to decide what routes to invest in, to expand in, is that driven – I guess, I'm trying to understand how those decisions get made. Is it mostly driven by the economics of what the current airlines that fly those routes are charging, so there's potential there and you can get gates, or is it based on what your users tell about where they want to go? I mean, how do you decide what routes to add?

Tilden: I think in the old days, I mean, we would do a P&L forecast for any route that we'd want to fly. And in our business, we still share a lot of information with the Department of Transportation. So we know how many people fly between any two city pairs. We know exactly how many people fly. We know exactly what the average fare is. We actually know the connecting. If you're talking about Seattle – Denver as an example, we know the connections that come down from Anchorage. We know the connections beyond Denver. So you actually have great information about the market today. You don't how much bringing your service in is going to stimulate the market.

So that's one piece of it is being really good at doing a route forecast. And I would say folks at Alaska, this is something we're – we've got a lot – we've added 110, 120 cities in the last five or six years. We've got a lot of confidence in our ability to build a route forecast and sort of believe that our performance will be close to the forecast. That is only part of it.

It's got to mix with a strategy of going to market and building loyalty. And if you look at what we're trying to do now, part of it is the micro forecast, but we're trying to go into a market like San Francisco or San Jose and say, “Hey, we'd like you to consider flying with Alaska Airlines and Virgin America. Consider joining our loyalty program. Consider having our credit card in your wallet." And people won't – it's a little bit of a chicken and egg scenario. They won't get your credit card or get into your loyalty program into you fly them enough places. And then when you fly to more places, they'll get into your loyalty program. And then once they're in the loyalty program, you add a new route, and the route will be successful.

So I think if you look at what we're doing today, we are doing a lot of that micro forecast, but it's also – we're going down into California. We're getting involved in the communities. We're marketing. We're trying to build loyalty in the loyalty program. We're adding new cities. We're advertising like crazy. So it's all of it together.

Rascoff: So one of the pieces of the brand positioning of Alaska, at least here in Seattle, is the hometown aspect, that this is your hometown airline. And I'm sure in Alaska, it's probably tenfold. When Delta moved into Seattle, they tried to sort of usurp that positioning, right? I guess, talk through how you do national and local marketing and how you – you have this product, which is obviously national, international really. But all these decisions are actually made locally. So explain how your national brand and your local positioning interact with one another?

Tilden: You know, one of the things that we believe is a lot of our success is you've got to be effective locally. If you look at it – as I said earlier, we fly 118 cities or something like that. But a market like Anchorage is really important. A market like Seattle is really important. Portland's really important. The Bay Area – San Francisco, San Jose – is going to be important.

So a lot of our thinking is more local. We need to go into those communities, build loyalty, do the right – I mean, Seattle, we've been there for – our headquarters have been here since 1954, so we want to be involved. We want to be showing up, doing the right things and providing good utility, good value, low fares to our customers. And then I think you have a chance of earning people's trust and loyalty. So I don't know. We are doing more and more national things, but if I had to choose local or national, I would choose local for our business.

Rascoff: So for example, UW Stadium is Alaska Airlines –

Tilden: It's local.

Rascoff: – arena, and that's a form or your local marketing.

Tilden: That's right.

Rascoff: Probably pretty hard to calculate the ROI on the naming rights –

Tilden: It is.

Rascoff: – on a college stadium. Do you even try, I mean, or is it just, you know, your gut says that that raises your brand awareness locally and –

Tilden: You know, one of the things that people say about marketing is half the money's wasted. You just don't know which half. And I think you look at a relationship like University of Washington, we've been affiliated with those guys forever. We know that a lot of our Golds and Gold 75Ks are alum. We know that they're in the stands on the weekend. When you look at something like UW, you can say, “Well, you know, what are the economics of this and how does that compare to the next thing?" But getting to ROI, honestly, I think that's tougher. You go with some gut feel.

Rascoff: Let's shift topics and talk about leadership, something that I know you're passionate about. In your view, what's the role of a leader? What does it even mean to be a leader?

Tilden: I think the leader helps the company chart a future, develop a strategy, figure out where you're going, bring people together. But, like, in our space, I think one of the under-appreciated, one of the really important parts of the being a leader is building alignment with your team. We had a person on our board said, you know – it was a military analogy – said, you know, “A bad plan with a great army that's totally motivated to execute it will always beat a good plan with an army that's not motivated and there's no sense of teamwork."

So I think a real job of a leader in our space especially, is to build that sense alignment, build that sense of teamwork. Part of it is you've got to figure out where you want to go, what is the strategy, what are you trying to do with a loyalty program, a new market announcement, a fleet, whatever it might be. The bigger part of the job is bringing your team along, getting them to follow, getting them to go out there and be great and help your company move forward. So that's something that I think Alaska in the last five, six, seven years has spent a lot more energy on, and I think it's paying off.

Rascoff: I mean, you got high praise for this. Everything I read and hear about the way you lead and manage is fantastic. When you're hiring a leader or when you're thinking about whether one of your direct reports is a good leader, how do you assess that?

Tilden: Like, I'm sort of into my career now, and you try different things on at different points of your life. But now, I look for four things in people. You want someone that's smart. That's really important. If it's a CFO, they've got to be good CFO. They've got to be good at their job, know how to close the books, communicate with Wall Street, whatever it is. They've got to have that.

The next two are even more important. I want people that really identify with our company. I call it they're clipped in. It's personal for them. They are totally bought into what Alaska's trying to accomplish, and they are totally, personally convicted about us getting to where we want to go.

And then the final one is how they work with other people. And it's something I've really grown to appreciate the last four or five years at Alaska. There are people that are sort of sharp elbows, and, “I just want to be ahead of you. It doesn't matter if I get ahead or if you go down," or there's people that really want to – they generally want to see their peers do well. And that's the people that collaborate. They want to work together, and they want to see their – they want to enjoy success themselves, but they also want to see their peers enjoy success.

Rascoff: They celebrate teamwork.

Tilden: That's right.

Rascoff: I was on a flight the other day, and the captain of the plane's son was the head flight attendant –

Tilden: Oh, my gosh.

Rascoff: – which was super cool. So, you know, they were both super excited to be working together. So, I guess, that's teamwork, but, you know.

Tilden: Fantastic.

Rascoff: What's the best advice that you've ever received, and tell us that story?

Tilden: I don't know. Bill Ayer was the previous CEO at Alaska Airlines. He was a great mentor to me. And I don't remember him actually saying this, but his lesson was just keep at it. Whatever it is that you're doing, make sure you're doing it for the right reasons, that you're justified it's appropriate. It's a good strategy. It's a good place to go, but just persevere. Just keep going at it. And if you do, and if people sort of see the goodness of what you're trying to accomplish, they see the value of it, they'll come along. And that's something I learned from him that I think was really important.

Rascoff: How has technology impacted your company and your industry over the last 10 years?

Tilden: It's huge. I mean, I could ask you all of these questions _____ _____ Zillow –

Rascoff: You have to get your own podcast. Then you get to ask the questions.

Tilden: [Laughs] There's a suggestion. That's a good idea. But, no. People buy tickets from home. Alaska was the first airline in 1995 to let you buy a ticket over the internet. You can print your boarding pass at home. Alaska was the first to do that. You can go to an airport, use a kiosk. Alaska led there as well. You can check in with an iPhone now.

Rascoff: So how many – yeah. I mean, I use your app all the time. So approximately how many software engineers do you have?

Tilden: I think it's in the neighborhood of 400 people now, something like that. I will tell you. It's an area that where our spending is quadruple what it was maybe five years ago in that area.

Rascoff: It's a good reminder that really every company is technology company now.

Tilden: It is. It is.

Rascoff: I mean, there are more software engineers at Morgan Stanley than Facebook. It's like –

Tilden: Isn't that amazing?

Rascoff: – and many more than Zillow. So it's, I guess, airlines, which are thought of as a traditional industry, are technology companies.

Tilden: No. Even, like, in the old days, all the computer was either on the airplane itself in the avionics or it was Saber. We used Saber for the backend. And now, there's maybe – there's hundreds of systems that are critical to us and we rely on every day to get weather, plan a flight, know where the airplane is, know where to deice, know – there's systems for everything, and we're relying on them.

Rascoff: I spoke the other day at a business school, and someone asked me a question that no one had ever asked me, so I'm going to end by asking it of you. They said if you had one magic bullet that you could shoot any competitor of yours with and that competitor would just disappear, which competitor would you choose and why?

Tilden: Yeah. You know what? It's a great question. I think I might not answer.

Rascoff: [Laughs]

Tilden: I think a lot of people might actually guess how I would feel or how Alaska would feel. But what we've learned at Alaska in the last three or four years and Seattle especially is that competition's actually good. We've had somebody come into Seattle and sort of take us on big time, but the company's taken a lot of risk in that time. We've added all kinds of routes. We've reconfigured our airplanes.

Rascoff: It's made you better.

Tilden: It's made us a little bit better, made us way better than we were. There's a tempting answer to that question, but I think the better way to train yourself is you want to be with the best, whether you're running a marathon, competing in football, running an airline, you want to be competing against the best, because that will make you better.

Rascoff: Brad, thanks very much. I appreciate it.

Tilden: Thank you, sir. It was fun.

Rascoff: Thank you.

The post Alaska Airlines' Brad Tilden: Competitors Make You Better appeared first on Office Hours.

https://twitter.com/spencerrascoff
https://www.linkedin.com/in/spencerrascoff/
admin@dot.la
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

                        Download the dot.LA App

                        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

                                              Download the dot.LA App

                                              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

                                                                    Download the dot.LA App

                                                                    RELATEDEDITOR'S PICKS
                                                                    Trending