Can AI Change How Hollywood Structures Stories? Corto.ai is Launching to Find Out

Sam Blake

Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake

Can AI Change How Hollywood Structures Stories? Corto.ai is Launching to Find Out

Having watched his reputation flourish upon a foundation of self-spun fabrications, then crumble into a heap of infamy that led him to change his name, Yves Bergquist knows a thing or two about stories.

As detailed in a November 2019 story in The Hollywood Reporter, Bergquist, who leads artificial intelligence (AI) projects at USC's Entertainment Technology Center (ETC), was formerly a national security analyst and ABC News consultant named Alexis Debat. Once his lies were exposed, he left Washington D.C. in 2007, shrouded in shame.


Now, Bergquist is set to go public with Corto, his previously stealth-mode startup that uses AI to help storytellers in the entertainment industry better understand their content, their operations, and their audiences. Since 2016, Corto has worked symbiotically with the ETC, a think tank founded in 1993 by Star Wars creator George Lucas to support cooperative technological advancement in Hollywood.

As the THR story conveyed, Bergquist seems genuinely contrite. He has embraced working extra hard to overcome his tarnished past and salvage his integrity.

"This is a very sensitive thing for me," he told dot.LA. "Twelve years later it's still haunting."

With the coronavirus indefinitely shutting down production and threatening to erode disposable incomes, Bergquist's comeback may be just in time to help Tinseltown recover from a looming downfall of its own.

Introducing Corto

Even in normal times, says Bergquist, Hollywood faces challenges. With front-loaded costs and lengthy investment timelines, it's an inherently risky industry. And Hollywood's customers have unique expertise in the products they consume.

"Cars and yogurt don't deal with car and yogurt experts," he said. "Media sells to customers who are extremely experienced and knowledgeable about the product of media."

Taking a page out of philosopher Yuval Noah Harari's book, Bergquist waxes poetic on the idea that religion, nationality, and modern economies all rely on collective buy-in to stories.

"They're the most important objects in human civilization," he said. "They're the reason we have a society."

Put that way, it's no wonder that people crave stories; and that many seek to profit from satisfying that craving. Indeed, as technology has progressed, the variety and volume of content platforms and stories at our fingertips has exploded.

Where Corto comes in, is to help storytellers–and story sellers–meet that demand and stand out against that competition.

The end goal, according to Bergquist: "Better understand what resonates with whom, and why."

Modern medicine offers a useful analogy. Previously, Bergquist explains, doctors made diagnoses with little information.

"Say you (were to) walk into my office. You seem to have a fever, your tongue is white. Those generally are associated with cold or bronchitis. So there's your diagnosis."

Compare that to modern healthcare, which empowers physicians to collect far more sophisticated and useful information. And soon enough, pundits forecast a new era of medicine, where tech-enabled lifestyle data merge with a patient's medical history, genetics, and more to provide the granular insights needed for personalized healthcare.

"It's the same thing for entertainment," said Bergquist.

So how does Corto aspire to bring about a new era of stories?

The What: Content Genomics

Essential to Corto is its database of stories that it has thoroughly analyzed using several AI techniques. Like a submarine, Corto probes the depths of a story at a level and speed that a human brain cannot, and extracts the extent to which the story contains certain features, including dozens of "emotional tonalities" like melancholy, power, and generosity. Soon, Bergquist says, Corto will be able to extract additional deep features, like those related to specific characters and the story's structure.

For now, Corto's value starts with what it can tell a user about a script that's not in its database.

Bergquist showed dot.LA how it works, using Ad Astra as an example. He expressed that the interface, while functional — and actively used by a "major studio" for the past several months — is in early form, and that the feature set is still just about "5% of the vision."

When a user uploads a script, Corto takes about five seconds to "parse" the document. Then, like a doctor receiving a patient's genetic readout, new doors suddenly open.

Corto has parsed the script, in this case Ad Astra

Typing "emotion for AD ASTRA" in the command bar brings up a table of dozens of those emotional tonalities, each with a score from 0-100. Anything in the 25-75 range is a weak signal, Bergquist explained, meaning that particular emotion is not especially prominent in the script. Scores below 25 suggest a notable absence of the given emotion, while those above 75 indicate a strong presence.

Corto emotional tonality output

The command "comps for AD ASTRA" yields a list of titles from the Corto database that are similar to the given title based on the deep features that Corto has unearthed. The lower a title's "distance" from another, the more similar they are. "Comp emotion" breaks down these comparisons across each of the dozens of emotional tonalities. Search results can be filtered, such as by type (movie, TV episode, etc.), release year, or country.

Comps for Ad Astra


Ad Astra comps across emotional tonalities

Importantly, these results can reveal unexpected similarities. The comparable titles that Corto yielded for a test user's spy procedural show, for instance, surprisingly included several Sci-Fi titles, said Bergquist.

"Suddenly," he said, "there's a whole new audience that they could potentially market this to."

In the future — later this year, according to Bergquist — Corto will add visual analysis to its text parsing. On top of exploring a script's depths, it will also be able to extract insights from video.

"We want to create a tool," Bergquist explained, "that essentially understands how specific human emotions or narrative structures are expressed visually and from a sensory perspective."

It would function similarly to what Corto currently does with scripts, except it would turn audiovisual footage, rather than text, into data and insights.

Parsing video footage

Encoding and labeling the various elements of video would also theoretically increase pre- and post-production efficiency. For example, explained Bergquist, a film editor could say, "'Show me all the times when a female character was smoking a cigarette in the rain' — things like that. You cannot search content like that currently."

And the content comparisons this would enable–based on attributes that do not exist in a script–would also help to improve recommendation algorithms, which Bergquist describes as the "big kahuna" for Corto's content analysis.

Whether the purpose is to identify just the right title for someone to watch next, or to successfully execute a finely targeted marketing campaign based on a title's comparables, one needs insight not just about the content, but also the audience.

The Who: Audience Genomics

"It's not just, 'okay, people liked Avengers, so they'll probably like this'," Bergquist said. "It's 'why did they like it? What did they like about it? Who liked which attributes?'"

To find these answers, Bergquist explained, Corto probes the wide world of social media.

By analyzing Tweets, Reddit posts and such that are related to a given title, and using analytical methods similar to those used for the content analysis, Corto "can derive positive or negative sentiment for a title based on attributes like the acting, the cast, the director, visual elements, emotional tonalities, the music, the plot and more."

Using a method called knowledge representation to pair this granular data with broader datasets like census data and voting behavior can provide a detailed picture of who these groups are, and where to find them.

"If you give us a script we'll give you all the zip codes where each narrative domain and/or character will resonate the most," Bergquist said.

What's more, Corto layers in network analysis, so that on top of knowing what resonates with whom, and where they are, it also shows how sentiment travels from one group to another. Particularly useful is the identification of "swayable" communities–those whom Corto believes are not yet fans of a given title, but could be converted. Armed with the knowledge of what titles and attributes have historically resonated with such a group, "these are the communities that you can target as a marketer."

"Since we have content analysis integrated directly with audience analysis," Bergquist summarizes, "we can run your script, get a list of comparables, then immediately give you deep insights on the size and type of audience for your script, directly based on millions of social media conversations across all the places where people talk about media."


Helping Hollywood

Though Bergquist shared plenty with dot.LA, he showed a practiced guardedness when asked about specific customers and pricing.

"I would love to tell you everything," he said, "but I would get sued into oblivion if this stuff was identified. Working with Hollywood is like working for the CIA."

He did share, however, that two studios have currently licensed Corto, with a third set to sign up soon. He declined to provide pricing information.

Corto is not the only AI-for-storytelling game in town. Cinelytic, also L.A.-based, uses AI for film analytics and project management. The firm, founded in 2013, recently inked a deal with Warner Bros. And StoryFit, which is headquartered in Austin but does most of its business in Los Angeles, has found some success licensing its tools which, like Corto, include elements of natural language processing (NLP) and sentiment analysis to analyze scripts.

"Marketing is frequently our first stop when we're introduced to a studio, because they're used to using data," StoryFit Chief Executive Monica Landers told dot.LA. "But we're really a better fit during development."

This often entails helping creatives avoid what Landers calls "red flags."

"You may want a character to be intelligent," she explains as an example, "but our analysis will show that she's actually speaking less intelligently than other characters. Or we can surface that your script is too flat. Or that the balance of dialogue and action is off."

StoryFit does a variety of projects, ranging from focusing on one script to a broader landscape analysis. Landers says customers include large and mid-size studios, and networks.

"Annual subscriptions range for most studios from $5,000 - $40,000 a month," she said.

"We've taken a radically different approach," claimed Bergquist. "As a result, we're able to output much deeper insights from a much wider dataset."

AI Skepticism

"My feeling about using NLP on scripts, is there's just so many places that can go wrong," said Brian Dolan, who formerly managed NLP analytics as director of research at MySpace and with the CIA, and is now Chief Executive of LA-based AI venture accelerator Verdant.ai.

"I'm skeptical it'll hit two marks," he told dot.LA. "I don't think it'll get to the sophistication where it can (predict performance), and more importantly, I'm not sure it can reach a level of sophistication where it can be tested – how do we know where it's making a mistake?"

"That's on top of whether machines should (even) be trying to analyze content," Dolan continued. "Aren't we humans making stories for other humans? Who benefits? The finance department – not the audience."

"Look, this isn't a silver bullet," retorts Bergquist. "And it's going to be a long time until it is. What this is, is a set of powerful tools to give development and marketing executives a lot more context and data than was previously available."

"Tens of billions of dollars are being spent every year making and marketing media content," he wrote. "If we can optimize even 5% of that – and it's likely we could do even more, from what our initial tests tell us – that's an enormous amount of money."

Neither CEO denied that what they are aiming to do is hard. And they both recognize that appealing to the community that will ultimately use these tools is crucial. To that end, each emphasized that what they seek to do is not replace people and processes, but augment them. Bergquist points out that Corto has the advantage of having been developed with a high degree of Hollywood input through ETC members, which include most major studios.

In the future, Bergquist believes Corto can reach the sophistication that's needed to make predictions about a story's bottom line. For now, he is taking it slow.

"The last thing the AI field needs is more buzz."

Knowing full well what can happen when a story gets out of hand, Bergquist appears to be ratcheting up the caution in his personal comeback sequel.

"What bit me in the ass in my last career is I created a story that was false," he reflected.

Time will tell how his story this time around lands with his own target audience.

---

Sam Blake covers entertainment and media for dot.LA. Find him on Twitter @hisamblake and email him at samblake@dot.LA

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Forget Rockets, This Long Beach Startup Spins Satellites Into Orbit

🔦 Spotlight

Hello Los Angeles!

It may be scorching this weekend, but the real heat is coming out of Long Beach, where SpinLaunch just raised $30 million to accelerate its Meridian Space satellite constellation. If you’ve heard of SpinLaunch before, it’s probably because of its wild approach: instead of burning tons of rocket fuel, the company literally spins payloads in a giant centrifuge before releasing them into the sky. It sounds like science fiction, but it’s one of the boldest bets on making access to orbit cheaper, faster, and more sustainable.

Image Source: SpinLaunch

The new funding will go toward advancing Meridian Space, a low Earth orbit broadband network that aims to deliver flexible, affordable global connectivity. With its first customer links expected in 2026, the project has the potential to do more than beam internet. It could reshape how enterprises, defense networks, and communities around the world connect. For Los Angeles, it’s a reminder that our region isn’t just about building the next social app or entertainment platform. We’re also home to the companies trying to redefine the very infrastructure of the digital age.

And while space tech often feels far away, SpinLaunch keeps its roots planted firmly here. Its headquarters and orbital accelerator facility sit right in Long Beach, reinforcing Southern California’s reputation as a launchpad for both aerospace and climate conscious innovation. After all, swapping fuel heavy rockets for a ground based launch system isn’t just cost effective, it’s far greener.

So while you’re cranking the A/C this weekend, remember SpinLaunch is busy cranking satellites into orbit, proving once again that in Los Angeles we don’t just chase the stars, we spin new ways to reach them.

🤝 Venture Deals

LA Companies

    • Wellth, a Los Angeles–based digital health company focused on daily care motivation and behavior change strategies, has closed an oversubscribed $36M Series C round led by Mercato Partners. The funds will be used to expand access to its platform across Medicare Advantage, Medicaid, D SNP, and other high-need populations, while also accelerating product innovation including introducing generative AI capabilities to personalize engagement, backed by strong performance metrics like 90 percent care plan adherence, a 51 percent drop in inpatient admissions, and a 16 percent boost in medication adherence. - learn more

      LA Venture Funds

        • Presight Capital participated in General Fusion’s oversubscribed $22M financing round, helping the Canadian fusion energy company push forward with its LM26 demonstration program. The fresh capital will drive progress toward key scientific milestones in Magnetized Target Fusion technology such as high temperature plasma generation and renew momentum on the path to commercializing clean fusion energy. The round also brings new board members onboard to fortify leadership as General Fusion advances toward a zero carbon energy future. - learn more
        • B Capital led a new Series C strategic growth investment in CompanyCam. The construction tech platform, known for its AI-powered job site documentation and workflow tools, will use the funding to expand globally, deepen AI integration, and enhance product features. WndrCo also participated in the round, backing CompanyCam’s push to transform contractor productivity. - learn more
        • Clocktower Ventures participated in Relcu’s latest funding round. Relcu provides an AI powered “system of action” for financial services that helps institutions streamline workflows, improve customer engagement, and drive growth. The company will use the new capital to extend its CRM and AI Agent Co Pilot beyond mortgage into deposits, lending, and other areas by enhancing AI integration, expanding APIs, and embedding intelligent automation to boost conversion, retention, and cross sell. - learn more
        • UP Partners participated in Loft Dynamics’ latest $24M Series B funding round. The Swiss based VR flight training company will use the investment to expand its revolutionary pilot training solutions, built on FAA and EASA qualified VR simulators, into commercial aviation, launching full motion Boeing 737 and Airbus A320 systems alongside cloud connected, AI enhanced tools and immersive at home training kits. - learn more
        • Upfront Ventures led the $5.6M Series A funding for Agenda Hero. The San Francisco based AI platform helps users eliminate manual calendar work by transforming text, images, and PDFs into fully structured, shareable events and schedules. The new capital will accelerate AI features, expand calendar integrations, and scale adoption across individuals, teams, and organizations. - learn more
        • Thiel Capital participated in Stark’s latest $62M funding round, which was led by Sequoia Capital and brings the German startup's valuation to around $500 million. Stark, founded in 2024, specializes in AI powered loitering munitions and command and control systems for battlefield drones, and plans to use the fresh capital to enhance its autonomous navigation, swarming capabilities, and expand production into new markets like the UK. Doepfner Capital also joined the round, backing Stark’s push to scale its defense technology. - learn more
        • Crosscut Ventures and Vamos Ventures joined Aalo Atomics’ $100M Series B funding round, supporting the Austin‑based company’s mission to deploy modular nuclear reactors tailored for AI data centers. Aalo plans to build its first full-scale reactor, dubbed Aalo‑X, by next summer, co‑locating it with an experimental data center to showcase how factory‑produced nuclear plants can deliver clean, reliable power rapidly. This latest capital infusion accelerates Aalo’s deployment timeline and reinforces its strategy of mass manufacturing scalable nuclear infrastructure for the AI era. - learn more
        • Overture VC co-led a $7M seed round in ChemFinity Technologies to boost its deployment of modular, sorbent-based systems that recover over 20 critical minerals from waste streams at low cost. The funds will help the company pilot and scale its high-performance technology, enabling domestic recovery of valuable metals like rare earth elements and platinum, while reducing reliance on imports and lowering environmental impact. - learn more
        • Muse Capital led a high profile strategic investment in Ohai.ai, the AI powered household assistant founded by Care.com veteran Sheila Lirio Marcelo, joining a star studded lineup of backers including Olivia Munn, Mindy Kaling, and Abby Wambach. The new funding will accelerate Ohai.ai’s mission to relieve parental mental load, launching a back to school feature that lets families automatically sync school calendars by ZIP code or flyer, making household planning significantly smoother. - learn more
        • Navitas Capital, alongside other investors, participated in EliseAI’s $250M Series E funding round. The New York-based AI company automating complex systems in healthcare and housing, will use the new capital to rapidly scale its team, enhance product innovation, and accelerate deployment of its AI-powered automation platform across front-desk operations, resident services, and beyond. The company has already doubled its workforce since its Series D, surpassed $100 million in annual recurring revenue, and aims to expand its impact across multiple stressful sectors. - learn more
        • Bedrock participated in TensorZero’s $7.3M seed round to advance its open source infrastructure for building industrial grade LLM applications. TensorZero offers an integrated stack covering LLM gateways, observability, optimization, evaluation, and experimentation, all designed to create a data driven “learning flywheel” that turns feedback into smarter, faster model performance and is rapidly gaining traction with developers and enterprises alike. - learn more
        • Calibrate Ventures co-led a $6M seed round in Grid Aero, backing the aerospace startup’s debut of its Lifter Lite drone, an autonomous heavy lift aircraft designed to deliver thousands of pounds over long distances in challenging environments. The seed funding will drive testing and scaling efforts as Grid Aero readies for ground trials and positions the “pickup truck of the skies” as a low cost, modular logistics solution for military and future commercial use. - learn more
        • Chapter One participated in Hyperbeat’s oversubscribed $5.2M seed round. Hyperbeat will use the new capital to expand its suite of on-chain tools such as staking tokens, high yield vaults, credit layers, and portfolio tracking aimed at simplifying and enhancing DeFi yield generation for traders, protocols, and institutions. The round underscores growing institutional confidence in Hyperliquid’s expanding ecosystem, which recently surpassed $2.1 billion in total value locked. - learn more
            LA Exits
            • SpectrumAi has been acquired by CentralReach, a leading provider of autism and intellectual and developmental disabilities care software, alongside fellow acquisition AI.Measures. The deals expand CentralReach’s Care360 platform with advanced tools including predictive analytics, real time decision support, and individualized assessment capabilities that help providers deliver outcomes based care. Leadership from both acquired companies will join CentralReach, further strengthening its ability to empower providers, payors, and families with intelligent, results driven therapy solutions. - learn more

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                      The Legal System Just Got Its AI Upgrade

                      🔦 Spotlight

                      Hello Los Angeles!

                      We talk a lot about AI in L.A., usually in the context of streaming platforms that “recommend” a movie you regret watching or apps that let you swap your face onto a Marvel poster. But the most interesting AI stories here aren’t gimmicks; they’re rewiring the hidden machinery of massive, slow moving industries. And this week, that spotlight falls on…lawyers.

                      LawPro.ai, a Los Angeles based legal tech startup, just closed a priced seed round led by Scopus Ventures to bring AI deeper into the world of injury claims. Their new “Case Assistant” isn’t about flashy automation, it’s about instantly surfacing case insights, cutting down endless hours of drafting, and helping law firms run with the precision of a Formula 1 pit crew.

                      Here’s why this matters: the legal industry has been one of the last holdouts when it comes to adopting tech that actually speeds things up. Now, with AI making its way from the red carpet to the courtroom, we’re watching the early stages of a shift that could change how justice is delivered in real time. In L.A., we’ve already seen AI startups shaking up entertainment, aerospace, and healthcare. Legal might be next.

                      And if LawPro.ai pulls it off, you might not just get a faster verdict, you might see the ripple effect across an industry that has spent decades charging by the hour. In other words, the billable clock might finally start running in our favor.


                      🤝 Venture Deals

                      LA Companies

                        • Equatic, a company using a patented seawater electrolysis process to remove atmospheric carbon dioxide while producing green hydrogen, has raised $11.6M in a Series A funding round. The round was co-led by Temasek Trust’s Catalytic Capital for Climate and Health (C3H) and Singapore-based Kibo Invest, and the capital will support the engineering, commercialization, and construction of its first 100‑kilotonne carbon removal facility, as well as broader manufacturing and technological development. - learn more
                        • SetPoint Medical has secured $140M in private financing, comprising a $25M second tranche of its Series C round and a $115M Series D round co-led by Elevage Medical Technologies and Ally Bridge Group. The funds will be used to launch and scale commercialization of the FDA approved SetPoint System, a pioneering neuroimmune modulation implant that targets the vagus nerve to treat moderate to severe rheumatoid arthritis, as well as to advance development of therapies for other autoimmune conditions. - learn more

                        LA Venture Funds

                          • Bonfire Ventures participated in Topline Pro’s $27M Series B funding round to help the company scale its AI driven platform for local home service businesses. Topline Pro provides tools for plumbers, landscapers, painters, and other service providers to manage websites, marketing, CRM, payments, and more, enabling them to operate as scalable, autonomous enterprises. The new funding will be used to enhance its AI agent suite and expand onboarding, customer success, and product development capabilities to deliver greater ROI for small businesses. - learn more
                          • B Capital participated in Isaac Health’s $10.5M Series A funding round, backing the company’s mission to expand access to brain health and dementia care. Isaac Health provides virtual and in-home services nationwide and will use the funds to enhance its AI-driven screening tools, strengthen its technology platform, and grow partnerships with health systems and payers. - learn more
                          • Bold Capital Partners joined a $44M Series C financing round for Gameto, a clinical stage biotech company developing stem cell derived reproductive therapies. The new funding, which brings Gameto’s total capital raised to approximately $127M, will support completion of its pivotal Phase 3 trial of Fertilo, an iPSC derived egg maturation therapy, and the company’s global regulatory filings and commercialization efforts. - learn more
                          • M13 led a seed round that raised $8.5M for Mako, a New York based AI startup focused on automating GPU code optimization. Mako’s platform lets developers write in familiar high level languages while its AI intelligently generates and continuously tunes low level GPU kernels, yielding faster performance, cost savings, and compatibility across hardware like NVIDIA, AMD, and Tenstorrent. The fresh funding will be used to expand the engineering team, deepen hardware support, and bring Mako’s performance tools to a broader audience in AI, graphics, simulation, and scientific computing. - learn more
                          • Rebel Fund participated in a $9M Series A round for Chowdeck, a profitable Nigerian food delivery startup aiming to build Africa’s next super app for food, groceries, and essentials. With this capital, Chowdeck plans to roll out its quick commerce strategy, powered by a network of dark stores and hyper local logistics, to speed up delivery across Nigeria and Ghana. - learn more
                            LA Exits
                            • Mayweather Boxing + Fitness has been acquired by Giant Ideas, LLC, alongside KickHouse, and will be combined with the company’s flagship brand Legends Boxing to form the largest skill based boutique fitness network with more than 70 studios worldwide. Rather than focusing solely on rapid expansion, the unified brands will prioritize operational excellence, franchisee success, and community driven skill development. - learn more

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                                      Locket, Disney, Instagram and the Battle for Your Attention

                                      🔦 Spotlight

                                      Happy Friday, Los Angeles!

                                      This week, LA’s biggest tech and media players made one thing clear: they want to own the relationship. Whether it’s a celebrity sending selfies straight to your home screen or a content giant rewriting the rules of sports broadcasting, the power shift toward more curated, direct experiences is unmistakable, and it’s being engineered right here.

                                      Image Source : Locket

                                      📸 Locket Doubles Down on Star Power

                                      Venice-based Locket, the viral photo sharing app that made homescreen widgets cool, is now leaning into what LA does best: celebrity. Its new feature, Celebrity Lockets, allows artists to send exclusive photos directly to fans’ home screens. Early adopters include Suki Waterhouse and JVKE, with creators curating limited fan access to maintain intimacy and exclusivity. As Locket evolves from a casual social tool into a direct fan engagement platform, it’s becoming an increasingly relevant player in LA’s creator tech ecosystem.

                                      🏈 Disney’s ESPN Plays Offense

                                      Disney made a trio of bold moves this week that solidify ESPN’s future and its dominance in sports media. It’s buying out the NFL’s stake in ESPN, securing exclusive NFL Draft and behind the scenes content through 2033, and finally giving its standalone ESPN streaming service a launch date: August 21, 2025. That’s a power play straight out of Burbank. At the same time, Disney announced it will no longer report individual subscriber numbers for Disney Plus and Hulu, signaling a shift in how it wants investors and maybe consumers to measure success.

                                      🗞️ The New York Post Bets on LA

                                      In a sign of LA’s growing national influence not just in entertainment, but in news, the New York Post is launching a West Coast vertical called The California Post. With an editorial mission to cover the state’s cultural and political pulse, this move reflects a broader trend of major media brands planting roots in LA to chase both readers and relevance. For local media startups, content creators, and civic tech players, it’s yet another sign that the competition and the opportunity is growing.

                                      Image Source: Meta

                                      📱 Instagram Wants Your Inner Circle

                                      Instagram rolled out a new set of features this week that prioritize connection with close friends. Users can now share what they’re doing, watching, or feeling with a smaller group, clearly borrowing from the intimacy playbooks of apps like BeReal, Snapchat, and yes, Locket. As social platforms shift from mass broadcast to curated circles, LA-based creators and consumer startups should take note: the next frontier might not be going viral, it might be going personal.

                                      From star-powered lockets to streaming shakeups and platform reinventions, this week’s stories highlight how LA’s tech and media companies are rewriting the rules on connection and control.

                                      Now onto this week’s venture deals 👇

                                      🤝 Venture Deals

                                      LA Venture Funds

                                        • Starburst co-invested in Madrid-based SpaceTech startup Orbital Paradigm’s €470,000 raise, part of an ongoing €2M funding round led by Akka. The company is developing reusable orbital re-entry capsules aimed at reducing costs and increasing sustainability for space missions. Starburst’s participation underscores its focus on backing innovative aerospace technologies with commercial and defense applications. - learn more
                                        • Rebel Fund participated in Orbital Operations’ $8.8M seed round, which came shortly after the company graduated from Y Combinator. The funding will support development of the company’s high-thrust orbital transfer vehicle, designed to maneuver satellites and other payloads in space more efficiently. - learn more
                                        • Fourth Revolution Capital participated in SuperGaming’s $15M Series B round, which valued the company at $100M, five times its previous valuation. The funds will help expand titles like Indus Battle Royale internationally and scale SuperGaming’s tools for developers in emerging markets. - learn more
                                        • Cedars-Sinai Health Ventures participated in Elion’s $9.3M seed round, joining NEA and others in backing the AI-powered healthcare research and intelligence platform. Elion helps over 60% of U.S. health systems evaluate emerging technologies through its structured vendor marketplace. The funds will support platform development, new product launches, market expansion, and team growth. - learn more
                                        • M13 led the $10M seed round for Kontext, an AI-powered contextual advertising startup emerging from stealth mode. Kontext’s platform enables real-time ads inside chatbot responses using large language models, and the funding will help expand its engineering team and develop image-based ad formats. - learn more
                                        • STORY3 Capital Partners made a significant minority investment in U.K.-based activewear brand Adanola, valuing the company at approximately $530 million. This strategic partnership brings STORY3’s deep experience in consumer brand scaling to support Adanola’s global expansion, particularly across the U.K. and U.S. markets. - learn more
                                        • Walkabout Ventures participated in OLarry’s $10M Series A round, which was led by TTV Capital and included Marin Sonoma Impact Ventures. The funding brings OLarry’s total capital raised to $14.5M and will be used to scale its AI-powered tax advisory platform for high-net-worth individuals and to acquire regional CPA firms as part of its growth strategy. - learn more
                                        • Glendon Capital Management participated in Grasshopper’s $46.6M funding round, which was led by Patriot Financial Partners, to support the bank’s merger with Auto Club Trust in April 2025. Their investment reflects confidence in Grasshopper’s ability to scale its digital banking platform and expand its suite of business and consumer financial products. Growth metrics as of June 30, 2025 showed a 53% increase in assets, an 81% surge in deposits, and a 49% rise in loans, all backed by this strategic capital infusion. - learn more
                                        • Mucker Capital participated in beatBread’s $124M capital raise, alongside Citi’s SPRINT team, Deciens Capital, and Advantage Capital. Their involvement supports beatBread’s strategy to expand sales, marketing, and technology operations, while enabling greater funding flexibility for independent artists, songwriters, and labels through its AI-powered platform. - learn more
                                        • B Capital co-led Positive Development’s $51.5M Series C funding round alongside aMoon and Flare Capital Partners, helping to fuel expansion of its developmental therapy model for autistic children. Their involvement underscores confidence in the company’s family-centered, play-based approach—which lowers costs by about 50% compared to traditional ABA therapy—and supports growth through new Medicaid partnerships and technology enhancements. - learn more
                                        • Clocktower Ventures participated in Creditop’s latest $3.7M funding round, which was led by Collide Capital and also included Alaya Capital, Amador Holdings, Newtopia, and Driven VC. Their involvement supports Creditop’s mission to enable credit access at the point of sale, without a credit card, and will help fintech deepen its footprint in Colombia while exploring expansion across Central America and Peru. - learn more
                                        • Thiel Capital participated in Pilgrim’s $4.3 million seed funding round, backing the biotech startup founded by 21-year-old Jake Adler after he demonstrated its hemostatic dressing, Kingsfoil, on himself. Their support underscores confidence in Pilgrim’s aggressive R&D and dual-use medical platform targeting both military and civilian emergency care. - learn more
                                        LA Exits
                                        • ElectroMagnetic Systems, Inc., a California-based specialist in AI and machine learning-powered target recognition software for space-based radar, has been acquired by Voyager. The deal strengthens Voyager’s AI-native surveillance and intelligence capabilities, enabling real-time monitoring across ground, air, and space domains to meet evolving defense and commercial demands. - learn more
                                        • Daring Foods is being acquired by Australia’s leading plant-based meat company, v2food, in a move that strengthens v2food’s push into the U.S. market. Daring will continue operating under its own brand and will serve as a platform to introduce v2food’s own products across the States. The deal, paired with a strategic partnership with Japanese food giant Ajinomoto, aims to accelerate innovation in clean-label protein and expand global reach. - learn more
                                        • Irwin Naturals is being acquired by FitLife Brands in an all-cash transaction valued at $42.5M, which includes approximately $16M in net working capital. The deal, expected to close around August 8, 2025, will nearly double FitLife’s scale, with projected combined annual revenue of over $120M and adjusted EBITDA between $20–25M. It will be funded with cash on hand, a new term loan, and a revolving credit facility, and is expected to generate synergies through complementary product lines, broader mass-market distribution, and improved operational efficiencies. - learn more
                                        • Solsniper, a Solana-focused trading and analytics platform known for high-speed memecoin execution, has been acquired by Phantom as part of its strategy to expand beyond wallets into full-service on-chain finance. The Solsniper team will join Phantom to enhance its advanced trading features, while the platform will continue operating independently. The move underscores Phantom’s ambition to offer seamless, integrated trading tools within the Solana ecosystem. - learn more
                                        • Cinelease is being acquired by Zello, a private investment platform dedicated to scaling businesses across the entertainment industry, in a strategic move to bolster production infrastructure and amplify its presence across North America. Under Zello’s ownership, Cinelease will continue operating as a standalone company led by its veteran team, enhancing its lighting, grip, and studio offerings for film, TV, and commercial productions. This acquisition sets the stage for disciplined growth and stronger relationships within the film and television production ecosystem. - learn more

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