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.

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Not Every Robot Wants Your Job

🔦 Spotlight

Happy Friday Los Angeles,

When people talk about the robotics boom, the conversation usually turns to warehouses, defense, humanoids or automation.

But one Los Angeles company is building a very different kind of robot.

Tombot, a local companion robotics startup, closed a $7 million Series A3 round with participation from Caduceus Capital Partners, Wavemaker 360, the Lutheran Foundation for Long Term Living and Florida Community Health Network to scale production of Jennie, its robotic companion dog. The product is designed for older adults, people with dementia, children with autism and others who may benefit from the emotional comfort of a pet but cannot safely or practically care for a real animal.

It is a quieter kind of robotics story, but a revealing one.

The most common vision of the robotics future is built around productivity: robots that move boxes, patrol borders, assemble parts or perform repetitive tasks. Tombot is aiming at something more personal. Its bet is that robots will not only help people work faster, but also help them feel less alone.

That makes the company part of a broader shift in robotics, where the question is not just “What can a machine do?” but “What role can it play in someone’s daily life?”

The need is real. Aging populations, caregiver shortages and rising demand for dementia care are putting pressure on families and health systems. At the same time, many people who would benefit from animal companionship cannot manage feeding, walking, grooming, vet bills or the safety risks that come with a live pet.

Image Source: Tombot

Tombot’s answer is a robotic dog that behaves like a companion, not a gadget. Jennie is designed to respond to touch, voice and interaction, giving users some of the emotional benefits of pet ownership without the responsibilities of caring for a living animal.

Southern California’s robotics scene is often viewed through the lens of defense, drones, aerospace and manufacturing. Those categories are important. But LA also has deep advantages in design, storytelling, entertainment, consumer products and human-centered technology. A companion robot sits at the intersection of all of those things.

It has to work technically. But it also has to feel right. The movement, expression, texture and emotional cues matter. This is where robotics starts to look less like pure engineering and more like product design, character development and trust-building.

The broader robotics market is still difficult. Hardware is expensive. Manufacturing is hard. Consumer expectations are high. And companion robots have historically been a tricky category, with plenty of hype and uneven adoption.

But Tombot’s traction suggests there may be real demand for robots that solve emotional and caregiving problems, not just operational ones. The company says it has built a large waitlist as it moves toward commercialization, giving it a chance to test whether companion robotics can move from novelty to necessity.

The bigger takeaway is that LA’s robotics future may not fit into one box.

Some companies will build for the battlefield. Some will build for factories. Some will build for space. And some, like Tombot, will build for the living room, the care facility and the family trying to support someone they love.

The robotics boom is often framed as a story about replacing human labor.

This one is about supporting human care.

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

🤝 Venture Deals

    LA Companies

    • Cosm received a $100M strategic investment from Sony Pictures Entertainment, with Sony taking a minority stake as the lead investor in Cosm’s Series C financing round. Cosm operates immersive “Shared Reality” venues that use dome-shaped LED screens for live sports, concerts and entertainment experiences, and the funding will support venue expansion and new technology initiatives across sports and entertainment. Sony Pictures CEO Ravi Ahuja will join Cosm’s board as part of the deal. - learn more
    • Pasadena-based Sophia Space finalized a $7M SAFE financing round, bringing its total funding to $22M. The round included participation from EverGreen, The NVIDIA Alumni Investment Network, SparkLabs Group and other strategic investors, with the new capital going toward product development, engineering and commercial hiring, partnerships and deployment across government, commercial and international markets. Sophia Space is building AI-powered infrastructure and intelligent systems for the space economy, including autonomous computing capabilities for orbital and terrestrial environments. - learn more

    LA Venture Funds
    • Sound Ventures participated in Warp’s $60M Series B, which was led by Battery Ventures with additional backing from Peak XV and Y Combinator. Warp is building an AI-native employee management platform for payroll, benefits, compliance, onboarding, offboarding and workforce operations, with the new funding bringing its total raised to $85M. The company says the capital will support deeper AI agents, expanded tax and compliance infrastructure, a broader product suite and more customer support. - learn more
    • Mucker Capital participated in Zave’s ₹4.7 crore bridge round, which was led by Inflection Point Ventures. Zave is building an AI-native shopping assistant that helps consumers discover products, compare prices and make purchase decisions across Amazon, Flipkart and more than 5,000 brand websites. The company plans to use the funding to strengthen its AI product, improve platform reliability and scalability, and support continued user growth. - learn more
    • B Capital co-led Seltz’s $12.5M seed round alongside Speedinvest, with participation from Future Present, Italian Founders Fund, Arc Investors, United Ventures, Vento Ventures, Mango Capital, 2100 Ventures and Future Back Ventures. Seltz is building web search infrastructure for AI agents, designed for the way agents query the internet: running long, parallel searches, pulling full documents and accessing live web context. The company plans to use the funding to scale its index to tens of billions of documents and build out engineering, sales and marketing. - learn more
    • Clocktower Technology Ventures participated in Caplight’s $16M Series A, which was led by BlackRock and Fin Capital, with strategic participation from UBS Investment Bank. San Francisco-based Caplight is building data, trading and workflow infrastructure for private markets, including secondary market pricing, institutional trading, company and investor intelligence, and AI-powered venture deal sourcing. The company says the new funding will help expand its role in rebuilding the rails for venture capital as private markets become larger, more liquid and more complex. - learn more
    • MaC Venture Capital participated in Coval’s $28M Series A, which was led by Norwest with backing from Base10 Partners, Twilio Ventures, Y Combinator and others. San Francisco-based Coval builds simulation, evaluation and monitoring infrastructure for voice and chat AI agents, helping enterprises test and improve autonomous agents before and after deployment. The company works with more than 60 organizations, including Zoom and Deepgram. - learn more
    • B Capital participated in Cadence’s $100M Series C, which was led by Spark Capital with additional backing from Thrive Capital, General Catalyst, Coatue, Corewell Health Ventures, Memorial Hermann and Duke Health. Cadence is a clinical AI company automating chronic care for older adults through supervised AI agents that monitor patient vitals, surface risks and coordinate care between visits. The company now works with more than 20 health systems, treats over 100,000 active patients and will use the funding to expand across new health systems, advance its AI agents and grow value-based care models. - learn more
    • WndrCo participated in Partly’s $50M Series B, which was led by DST Global Partners. Partly is building AI-powered infrastructure for the auto repair industry, helping repairers, insurers and parts suppliers identify and source the right vehicle parts as cars become more complex. The new funding will support Partly’s push to bring frontier AI into repair workflows and reduce friction across the global replacement parts market. - learn more
    • Döpfner Capital participated in Stark Defence’s €500M funding round, which was backed by major investors including Sequoia Capital and Founders Fund and valued the German drone company at roughly €3.2B to €3.5B. Stark develops unmanned defense systems, including loitering munitions, and plans to use the funding to expand R&D and manufacturing capacity across Europe. The raise comes as European defense tech continues attracting significant investor interest amid rising military spending and demand for autonomous systems. - learn more
    • Smash Capital led Redo’s $81M Series B, with participation from existing investors Pelion Venture Partners and Cervin Ventures, valuing the commerce technology company at a reported $1.25B. Draper, Utah-based Redo started in returns and exchanges but has expanded into a broader post-purchase and AI-powered commerce platform covering order tracking, package protection, fulfillment, customer service, marketing and shopper engagement. The funding will support product development, AI initiatives and international expansion. - learn more
    • Wavemaker 360 Health participated in ChemT Biotechnology’s $4M seed round, which was led by Wavemaker Ventures with participation from co-investment partner SEEDS. Singapore-based ChemT has raised $5M total in 18 months and is building AI infrastructure for biomanufacturing, including its CelMo virtual cell platform, which helps manufacturers model and guide cell behavior to improve biologics production, scalability and cost. The funding will support expansion of ChemT’s AI and experimental infrastructure, advancement of its molecular products toward GMP standards and broader commercial partnerships. - learn more

    LA Exits

    • The New Bar, a Venice-born non-alcoholic beverage discovery platform, was acquired by The Zero Proof. The deal combines The New Bar’s hospitality, live events and cultural partnerships with The Zero Proof’s national e-commerce, owned brand portfolio and retail distribution platform. The New Bar’s leadership will join The Zero Proof, with founder Brianda Gonzalez becoming Vice President of Strategy and Partnerships. - learn more

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      Snap May Have Finally Found AR’s Moment

      🔦 Spotlight

      Hello Los Angeles,

      Snap has spent years trying to make augmented reality feel less like a demo and more like a daily habit. This week, it introduced its latest attempt.

      At Augmented World Expo, Santa Monica-based Snap unveiled SPECS, its new standalone augmented reality glasses. The device is designed to bring AI assistance, work tools, entertainment and shared experiences into the physical world without requiring a phone, puck or tether.

      The pitch is not simply “screens on your face.” Snap is trying to position SPECS as a different kind of computer: one that can understand what you are looking at, respond to your surroundings and make AI useful in the moment. That could mean directions placed where you need them, a virtual workspace that travels with you or AI assistance that sees the same context you do.

      The developer piece may be just as important as the hardware. Snap says developers have already built hundreds of Lenses for SPECS, and the company is rolling out new tools inside Lens Studio, including agentic development support through Claude Code, Codex and Cursor, a new Native Development Kit and a spatial benchmark for AR experiences.

      That matters because AR has always had a chicken-and-egg problem: impressive demos, but not enough everyday reasons to wear the device. Snap is trying to solve that by building not only the glasses, but the software, developer tools, operating system, computer vision stack and creative ecosystem around them.

      Specs

      SPECS are available for pre-order at $2,195, with a $200 refundable deposit, and are expected to ship this fall in the U.S., U.K. and France.

      For Snap, the bigger question is whether augmented reality can finally move from developer demos and futuristic keynote moments into something people actually want to use. SPECS are its latest answer, but the real test will be whether developers can build experiences useful enough to make the glasses feel less like a gadget and more like a habit.

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

      🤝 Venture Deals

        LA Companies

        • Critical Energy raised $19M in seed funding co-led by Upfront Ventures and Susa Ventures, and also secured $3M in venture debt from Silicon Valley Bank, bringing its total early capital to $22M. Founded by SpaceX alum Spencer Jackson, the company is adapting rocket-engine-style turbomachinery for modular geothermal power plants and plans to use the funding to build its first 2.5 MW project. - learn more

        LA Venture Funds
        • Group 11 co-led Dream’s $260M funding round alongside Bicycle Capital, with participation from Antler, Bain Capital Ventures, Tru Arrow Partners and other investors. Dream builds sovereign AI and cyber defense technology for governments and critical infrastructure operators, with the new funding valuing the company at $3B and bringing total funding to $412M. The company plans to use the capital to expand its national cyber defense and AI platforms across Europe, the Middle East, Asia and the Americas. - learn more
        • Undeterred Ventures participated in Portal Biotechnologies’ oversubscribed $9M financing round, which was led by NFX with backing from existing investors including IA Ventures, Pear VC, IKJ Capital and TechU Ventures. Watertown-based Portal is building cell engineering infrastructure for drug discovery, AI data generation and cell therapy manufacturing, using its mechanoporation platform to deliver RNA, gene editors and other molecules into hard-to-transfect cells. The company also expanded its DARPA work through an Embedded Entrepreneur Initiative contract tied to point-of-care cell therapy manufacturing and says its platform has been adopted by more than 100 customer sites. - learn more
        • Clocktower Ventures participated in Trace Finance’s $32M Series A, which was led by CoinFund with backing from Coinbase Ventures, Haun Ventures, Jump Crypto, Valor Capital, Paxos, HOF Capital and others. Trace Finance is building regulated banking and stablecoin infrastructure for cross-border payments across Brazil, the U.S. and emerging markets, combining local payment rails, FX, compliance operations and stablecoin settlement. The company has processed more than $10B in institutional cross-border volume and will use the funding to expand product capabilities and grow across LatAm, APAC and other priority markets. - learn more
        • Alexandria Venture Investments participated in Vedana Therapeutics’ $46M Series A, which was co-led by Westlake BioPartners and Canaan Partners, with additional participation from Dawn Biopharma. Seattle-based Vedana is developing next-generation preventive migraine therapies, including antibody-based treatments targeting PACAP and CGRP pathways, with the funding going toward advancing its internally discovered portfolio of subcutaneously delivered antibodies. - learn more
        • Fulcrum Capital participated in HighGround’s $6.5M seed round, which was led by Next Frontier Capital with additional backing from Tandem Ventures and Context Ventures. HighGround is building an intelligence platform for defense and aerospace capital markets, helping investors, operators and advisors analyze government spending, procurement signals, deal risks and market demand. The funding will support expanded data coverage and deeper analytical models for defense-focused investment and business development workflows. - learn more
        • Bonfire Ventures participated in Vali Health’s $6M funding round, alongside Supernode, Comma Capital and healthcare industry veteran Jacquelyn Kung. San Francisco-based Vali Health is building responsible AI infrastructure for healthcare, helping providers and health systems evaluate, monitor and safely deploy AI tools across clinical and administrative workflows. - learn more
        • Clocktower Ventures participated in Karta’s $15M Series A, which was led by Galaxy Ventures, with additional backing from Canary and Illuminate Financial. Miami-based Karta is building a WhatsApp-first premium U.S. credit card for non-U.S. clients, helping global travelers with U.S. bank or brokerage accounts access dollar-denominated spending power without needing a traditional U.S. credit history. The company also secured a $125M credit facility from Community Investment Management, bringing its total new financing to $140M. - learn more
        • Alexandria Venture Investments participated in Triveni Bio’s $65M Series C, which was co-led by Ascenta Capital and Janus Henderson Investors, with significant participation from Deep Track Capital. Watertown-based Triveni is developing antibody treatments for immunological and inflammatory disorders, with the funding going toward expanding clinical development of TRIV-573, its bispecific antibody targeting atopic dermatitis, including a larger Phase 2 proof-of-concept study expected to begin later this year. - learn more
        • WndrCo participated in XDOF’s $70M funding round, alongside investors including Thrive Capital, Spark Capital, a16z and Lux Capital. XDOF is building robotics data infrastructure for AI labs, handling the unglamorous but critical work of collecting, labeling and organizing real-world robot training data. The company says it already works with about 20 customers, including several frontier AI labs. - learn more
        • Fika Ventures participated in SubBase’s $7M Series A, which was led by FINTOP and brings the company’s total funding to more than $15M. Ft. Lauderdale-based SubBase is a construction materials procurement platform that helps specialty trade contractors and self-performing general contractors manage pricing requests, orders, supplier communication, delivery tracking and invoice reconciliation in one system. The company plans to use the funding to expand product and engineering, deepen supplier integrations and build more AI-driven workflow and intelligence features. - learn more
        • Upfront Ventures participated in Bland’s $50M Series C, which was led by Dell Technologies Capital with additional participation from HubSpot Ventures, Archerman Capital and Tribeca Venture Partners. San Francisco-based Bland builds voice AI agents for complex phone, SMS and chat conversations, with a focus on longer, high-stakes workflows in regulated industries like healthcare and financial services. The round brings Bland’s total funding to more than $100M. - learn more
        • Impatient Ventures participated in Traysar’s $25M seed round, which was led by Silent Ventures and included backing from Lux Capital, Ora Global, NeverLift VC, Mana, New Vista, Entree Capital and angel investors. Traysar emerged from stealth at the 2026 Reindustrialize Summit as a subterranean defense tech company building autonomous “subterra” platforms designed to detect, penetrate and secure underground environments. The company says its technology is aimed at addressing underground military facilities and other hard-to-reach subsurface domains. - learn more
        • MaC Venture Capital participated in Swsh’s $4M seed round, which was led by Game Changers Ventures with additional backing from Stellation Capital, SignalFire and angel investors including Scooter Braun and Guy Oseary. Swsh is building an AI-powered fan engagement platform for live events, helping artists, teams and brands organize fan-captured photos and videos while turning that content into audience insights and first-party engagement data. - learn more
        • B Capital led SolarSquare Energy’s $53M Series C, backing the Mumbai-based residential rooftop solar company as investor interest grows in India’s home solar market. The round valued SolarSquare at roughly $450M–$500M and included participation from existing investors including Lightspeed, Lowercarbon Capital, Rainmatter by Zerodha and Good Capital. SolarSquare plans to use the funding to expand into new cities, strengthen its technology platform and scale operations. - learn more

        LA Exits

        • Mavida Health, a digital mental health company focused on women and families, was acquired by WPS Health Solutions. The deal expands WPS’ digital health capabilities with Mavida’s virtual therapy, medication management and specialized mental health support across fertility, pregnancy, postpartum, loss, parenting and menopause. Financial terms were not disclosed. - learn more
        • Vica, an AI video startup focused on helping small businesses create cinematic-quality marketing content, was acquired by Addi. The acquisition brings Vica’s AI video capabilities into Addi’s growth platform for Main Street businesses, which combines financial intelligence with marketing tools to help small businesses attract and retain customers. - learn more
        • GateMaker, a female-founded influencer marketing agency, was added to Residence, the Los Angeles-based global network of independent creative companies. The deal brings GateMaker’s creator economy expertise across paid, earned and owned influencer relationships into Residence’s broader creative network, which also includes companies like BUCK, OK COOL, Giant Ant, Part & Sum and Wild. - learn more
        • Gavel, an AI-native legal tech company used by legal professionals to draft, review and automate legal work in Microsoft Word and on the web, was acquired by Relativity. The deal will bring Gavel’s drafting, redlining and document automation tools into Relativity’s legal data intelligence platform, allowing work product created in RelativityOne and Relativity aiR to be edited in Microsoft Word while syncing back to the underlying matter data. Financial terms were not disclosed. - learn more

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          Evotrex Raises $30M to Electrify the RV
          Evotrex

          🔦 Spotlight

          Hello Los Angeles,

          The RV has not changed much in decades: tow it, park it, plug it in and hope the campground has enough power. Evotrex is betting the next version should act less like a trailer and more like a mobile energy system.

          Los Angeles-based Evotrex raised a $30M Series A, bringing its total funding to $46M, to accelerate production of its Evotrex-PG5 electric RV trailer. The round included participation from GSR United Capital, Forebright Concerto Capital, Unique Capital, Pegasus Capital, TTGG Ventures, ChunJia Capital, Thundersoft and other investors.

          The PG5 is designed as both an RV and a mobile power platform, combining onboard power generation, energy storage and intelligent energy management in one off-grid trailer. In other words, Evotrex is not just selling a place to sleep outdoors. It is building a rolling power system for camping, remote work, events, mobile businesses and backup energy.

          The timing lines up with a few bigger trends at once: EV adoption, off-grid travel, distributed energy and consumers treating vehicles as extensions of the home. That puts Evotrex at the intersection of several hard categories: vehicles, energy storage, consumer hardware and outdoor lifestyle.

          The company plans to use the funding for final product development, automotive-standard testing and validation, and production preparation ahead of planned customer deliveries in 2027. Starting in Q4 2026, Evotrex expects to begin testing across towing, range, braking, lateral stability, structural durability, water exposure and regulatory compliance.

          That testing phase matters. It is one thing to create a sleek prototype. It is another to build something that can be towed, powered, lived in and trusted far from a charging station or service center.

          Evotrex says roughly 90% of its order book is for the fully loaded Premium trim, priced at $159,990, which it plans to prioritize for initial deliveries. That suggests early buyers are treating the PG5 less like a basic camper and more like a high-end mobile living product.

          Now Evotrex has to prove the hardest thing in hardware: that the product works as well on the road as it does in the renderings.

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

          🤝 Venture Deals

            LA Companies

            • Poetic raised a $50M Series A led by Kleiner Perkins to scale its enterprise AI automation platform. Formerly known as Forge, the company builds software that “learns like AI but runs like code,” helping automate complex, high-stakes business processes across areas like financial services, insurance, healthcare and other regulated industries. The funding will support product development, hiring and broader customer deployment. - learn more
            • Leaf Agriculture raised a $13M Series B led by Leaps by Bayer and a group of industry strategic investors. The agtech company helps agriculture businesses clean, structure and manage farm data from machinery, soil labs, weather stations, satellites and farm management systems so they can build AI tools and analytics on top of it. The funding will support Leaf’s push to become a core data infrastructure layer for agribusiness.. - learn more

            LA Venture Funds
            • UP.Partners participated in Coram AI’s $35M Series B, which was co-led by Ansa Capital and Battery Ventures, with additional backing from 8VC and Mosaic Ventures. Sunnyvale-based Coram AI turns existing security infrastructure, including cameras, badge readers, visitor logs and emergency systems, into an AI-powered physical security platform that helps organizations detect incidents, investigate footage and respond faster. The company has now raised $66M total and is deployed across more than 1,500 sites in North America. - learn more
            • Smash Capital participated in Digital Asset’s $355M funding round, which was led by a16z crypto and included backing from major financial institutions and investors including ADIA, Apollo Funds, BNP Paribas, Citadel Securities, Coinbase Ventures, HSBC, Polychain, SoFi, Tradeweb and others. Digital Asset is the creator of Canton, a public layer-one blockchain built for regulated financial markets, and will use the funding to expand Canton’s ecosystem across tokenization, settlement, payments, collateral mobility and other institutional finance workflows. - learn more
            • Alexandria Venture Investments participated in SonoThera’s oversubscribed $125M Series B, which was led by Vida Ventures and included backing from ARK Invest, CureDuchenne Ventures, Leaps by Bayer, Otsuka Pharmaceutical, UCB Ventures, Vivo Capital, ARCH Venture Partners, RA Capital and others. SonoThera is developing ultrasound-mediated, nonviral genetic medicines designed to deliver DNA and RNA payloads without traditional viral vectors, with the funding going toward advancing its lead programs in Duchenne muscular dystrophy and autosomal dominant polycystic kidney disease into the clinic. - learn more
            • Wavemaker 360 participated in Lium’s $5.5M seed round, alongside SJF Ventures, Reach Capital and GC&H Investments. Formerly known as Astromind, Dallas-based Lium is building an “agentic harness” that helps large language models work with complex scientific and industrial datasets, including satellite imagery, seismic surveys and electromagnetic spectrum analysis. The platform is designed to make messy, non-text data easier for scientists, engineers and industrial teams to query and analyze with AI. - learn more
            • Riot Ventures participated in Endurance Energy’s $54M Series A, which was led by Founders Fund with additional backing from Ascend, Construct Capital, Felicis Ventures, First Round Capital, Point72 Ventures and Voyager Ventures. Founded by former SpaceX engineer Andrew Redd, Endurance is developing subsea geothermal power plants designed to tap volcanic heat deep in the ocean and provide 24/7 clean energy for rising demand from AI data centers, EVs and heavy industry. The funding will support development of its power plant plans as the company grows its team. - learn more
            • Wavemaker 360 participated in 01Health’s $15M Series A, which was led by Gresham House Ventures, with follow-on backing from Balderton Capital and Eka Ventures. 01Health is building a healthtech platform that brings specialist care into local clinics through clinical protocols, specialist oversight, AI tools, patient communication and monitoring systems, with the funding supporting its UK rollout and U.S. market expansion. - learn more
            • Calibrate Ventures led Flux’s $5M funding round, with participation from existing investors True Ventures and Glasswing Ventures. Boston-based Flux is building a code-first engineering intelligence platform that analyzes code changes to give engineering leaders visibility into quality, security, technical debt and team dynamics as AI reshapes software development. The funding will support product development and go-to-market growth. - learn more
            • Village Global led MNX’s $6.4M pre-seed round, with participation from Finality Capital Partners, Cambrian, North Island Ventures, Relay Digital and angel investors. MNX is building a MegaETH-based decentralized futures exchange for the AI economy, with planned markets tied to AI company valuations, GPU compute prices, electricity costs, AI benchmarks and prediction markets. The company was valued at $40M in the round and plans to launch mainnet this summer. - learn more
            • Mantis Venture Capital participated in Sandstone’s $30M Series A, which was led by Lightspeed Venture Partners with additional backing from SV Angel, Operator Partners, Kearny Jackson, Daybreak Ventures and Litquidity Ventures. Sandstone is building AI-powered workflow automation for in-house legal teams, helping companies manage legal requests from tools like Slack, email and Jira while automating intake, triage, drafting, review and analysis. The round brings Sandstone’s total funding to $40M. - learn more
            • WndrCo participated in Idilio’s $5.5M seed round, alongside a16z Speedrun, Goodwater Capital, Precursor Ventures and other investors. Idilio is building an AI-powered microdrama platform for Spanish- and Portuguese-speaking audiences, producing short-form drama series at the intersection of telenovelas and vertical mobile video. The funding will support platform development, expanded content offerings and the launch of its Idilio Creators program. - learn more
            • Mantis Venture Capital and Village Global participated in Pogo’s $32M in funding to date, alongside investors including Josh Buckley’s Buckley Ventures, 20VC, Lenny Rachitsky and the founders of Honey. Pogo is launching an AI-powered consumer research platform built around purchase-verified buyers, helping brands run surveys, AI-moderated interviews and behavioral research using verified transaction, receipt, app usage and location data from its opted-in consumer network. The company says its app has more than 3M users and visibility into more than $470B in transaction value. - learn more
            • Mantis Venture Capital participated in EDGE Markets’ $29.2M Series A, which was led by CoinFund with backing from Indicator Ventures, Stepstone Group and Bullpen Capital. EDGE Markets builds financial infrastructure for gaming, crypto and prediction markets, and will use the funding to launch EDGE Pro, a banking platform for market makers, and EDGE Connect, a purpose-built payment rail for regulated gaming and prediction market operators. - learn more
            • MTech Capital participated in Finovox’s €8.2M Series A, which was led by TX Ventures and included backing from Auriga Cyber Ventures II, Start Ventures, Force Over Mass and FDJ UNITED Ventures. Paris-based Finovox builds AI-powered document fraud detection software for financial services, insurance and other regulated industries, and will use the funding to expand across Europe, strengthen its technology and grow its team. The company says it now serves more than 70 organizations across 15 countries. - learn more

            LA Exits

            • RiskFront AI was acquired by K2 Integrity, bringing its agentic AI platform for financial crime compliance and risk operations into K2’s broader risk, compliance, investigations and monitoring business. RiskFront AI’s platform, Airos, automates research, transaction analysis and document processing to reduce manual work across financial crime and compliance workflows. Financial terms were not disclosed. - learn more
            • LevPro was acquired by Octus, bringing its front-office software for CLO, broadly syndicated loan and private credit managers into Octus’ credit intelligence platform. LevPro will join Sky Road to help create an integrated AI-powered platform spanning market intelligence, investment analytics, trade workflows, portfolio management and monitoring. Financial terms were not disclosed. - learn more

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